how often do you change your system? | Forex Factory

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how often do you change your system?

  • #1
  • First Post: Dec 29, 2006 2:43pm Dec 29, 2006 2:43pm
OK so we are going into a new year and a fresh start for those who need it

Here's a question that has been playing on mind....

How often do you change your system?

Now you always hear how the market changes and you are supposed to adapt with the markets. So who here has gone through multiple diffeterent systems?

I don't mean system hop but conciously changed there systems to adapt with the markets....

Have you completely changed the system or just tweaked entry and exit rules?

I guess I am asking this question because I have a good system which works but I am wandering if this wll be short lived or if I can rely on this in the long term and what adjustments if any have to be made as the markets evolve...
  • #2
  • Dec 29, 2006 2:51pm Dec 29, 2006 2:51pm
if you trade using price action with either pin bars or candlesticks..your system changes automatically. Thus price action is the most versatile trading system out there
  • #3
  • Dec 29, 2006 2:52pm Dec 29, 2006 2:52pm
I base all of my trading around support and resistance and breakouts... What do you think?
  • #4
  • Jan 1, 2007 2:54pm Jan 1, 2007 2:54pm
Is there anyone out thee who is willing to offer some insight into this as I think it is a valid question and will help others understand exactly what is involved when trading... It is ok to find a great system that works now but what about in 1 or 2 years time.

There mst be people making big life changing decisions based on a system that they have been using for a little while and is yielding great results... but it would be useful to know if there is any system which will always work or if every system becomes obselete after a while...

please offer some insight... maybe as above just entry's and exits must be altered?
  • #5
  • Jan 1, 2007 3:13pm Jan 1, 2007 3:13pm
I've traded the same system for 3 years now. Systems don't have to fail. You can design them with a level of adaptivity that allow them to adjust to market conditions. Not all systems perform well in all markets. To combat that you need to have an objective means to decide when your system is preforming well and when it needs a visit to the doctor for a checkup. I think this lack of objectivity is the reason why some people abandon a perfectly good system while others ride a bad system into ruin.
  • #6
  • Jan 1, 2007 3:48pm Jan 1, 2007 3:48pm
nope, dont ever change your system unless it sucks. in my opinion, when you develope a system you have to go through a lot of back testing.right? anyway the market rarely changes. my point is, if you develope a system you have to stick with it, fix any bugs and adapt to your system not to the market because that is the whole reason no one can find the holy grail. we cant know what the market will do tomorrow but through our systems which we plan, build,fix and put to work; we have a good chance to knowing somehow where the market will go next.

develope your system ....backtest it ...for the last 3 to 5 months on the 5 min chart and tadaaa!!!!!! after all the borring testing get done....you have a winner system...now is time to put it to work for real and make some big money.....

yeah .............and happy new year......hope all of us become millionaires this year.....
DISCIPLINE IS THE KEY TO SUCCESS!!!:nerd:
  • #7
  • May 15, 2007 3:07am May 15, 2007 3:07am
at will, or just do it all at once
  • #8
  • May 15, 2007 5:33am May 15, 2007 5:33am
I have tested around 6-7 trading system but now the system i use and wont change is the one in my sign.

I have read somewhere that you need to feel at ease with a system. Lots of system are more like mumbo jumbo stuff like the price action or Elliot Wave.

For example, Elliot Wave highly rely on past chart exam saying, so you see, here is wave 1-2-3 and abc... But this is allmost impossible to say this on day to day... There is more situation where the wave rule does no apply than when it actually works. And when it does not work, you can say, hey thats normal, you were not looking at the correct wave.
  • #9
  • May 15, 2007 8:20am May 15, 2007 8:20am
Quoting melpheos
For example, Elliot Wave highly rely on past chart exam saying, so you see, here is wave 1-2-3 and abc... But this is allmost impossible to say this on day to day... There is more situation where the wave rule does no apply than when it actually works. And when it does not work, you can say, hey thats normal, you were not looking at the correct wave.
The problem with the Elliot Wave is that it is a model that needs to be fit precisely in order to "prove" that it works. If you look at an uptrend, there can be any number of waves and peaks in that trend, but Elliot theory says that there must be exactly five of them. So traders will fit the data to the model. This is very dangerous, and why it never works.

Price action is a very broad term and can mean a lot of things. Price patterns (wedges, flags, triangles, etc.) fall under this category, and is more fitting the data to the model in hindsight, like Elliot. However, well defined one to three bar price action that doesn't try to manipulate the data is effective.
  • #10
  • May 15, 2007 8:39am May 15, 2007 8:39am
Quoting bluebuddha
The problem with the Elliot Wave is that it is a model that needs to be fit precisely in order to "prove" that it works. If you look at an uptrend, there can be any number of waves and peaks in that trend, but Elliot theory says that there must be exactly five of them. So traders will fit the data to the model. This is very dangerous, and why it never works.
you explained better my point than i did thanks, that's what i wanted to say
  • #11
  • May 15, 2007 11:07pm May 15, 2007 11:07pm
Quoting hilmy83
if you trade using price action with either pin bars or candlesticks..your system changes automatically. Thus price action is the most versatile trading system out there
Agreed!
google:
  • #12
  • May 15, 2007 11:32pm May 15, 2007 11:32pm
Quoting Micardo

How often do you change your system?

...
As often as neccessary until it works.
A full & true "System" works across All tempraments.
  • #13
  • Last Post: May 16, 2007 1:16am May 16, 2007 1:16am
Mine changes a bit from time to time, depending on what time frame I'm trading and market conditions. Price action and support and resistance are the constants to my trading. 15min or under is largely stochastic/macd, on charts 15min - 1hr is stoch/macd, pitchforks or keltner channels. 4h and up is more trend lines, channels or pitchforks. If the market is really trendy I generally stick with trend lines. While I generally don't draw fibs, I do sometimes ruff them out in my head and take my exit on a S/R or on old consolidation areas.

Although, the core of my system doesn't change I do look for other things to complement the system. My latest exploration to see how it fits with my system is one long term MA.
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