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Attachments: Stick to one system!
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Stick to one system!

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  • #1
  • First Post: Dec 15, 2008 4:43pm Dec 15, 2008 4:43pm
Ok I just feel the need to post this up here for some of the new folks who are entering the realm of trading for the first time or for those of you who have not yet found your way in this business.

Forex Factory has created an opportunity for experienced and new traders to come and share information in a collaborative manner in order to enhance ones abilities. This has created the double edge sword effect. While there are some great systems on this site it gives the new trader too many choices to choose from. This can be dangerous for the trader who has not yet found the discipline necessary in order to trade a system to become a profitable trader.

Choose one system and one setup and stick with it. Learn it and love it understand its nuances and intricacies. And when you have done this you will have found a trading system that produces consistent results over and over and you will have the confidence you need to trade that system even after experiencing multiple losses in a row because you know in the end that the system works and it’s profitable.

Stop system hopping and stick with one system! Now I would like to provide a few examples as to why you need to stick with one system. I am going to post a chart that will give me a reason for getting in based on different rules which could be construed as a trading system.

I am not trying to put anyone or any system down I am just trying to point out that multiple different trading systems will give you signals but if you jump to a new system the moment you have a losing trade you never really learn a system and never really give it a chance. Find one that meets your needs and make some minor modifications to meet your personality. Maybe you found an alternate way to enter or maybe you like your stops to be closer or maybe you decide to set take profit levels as opposed to trailing your stop as the trade develops.

Make a system your own but start with just one.

All the best and Happy Holidays,
Vick
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: system 4.gif Size: 23 KB
Click to Enlarge Name: system 5.gif Size: 24 KB
Nothing is impossible, with a willing mind!
  • #2
  • Dec 15, 2008 6:22pm Dec 15, 2008 6:22pm
Sort of....I just started my Forex studies in May. In order to find the trading style and time frame that fits me and my schedule, I have been guilty of moving from system to system in search of the one or two that fit me. But how else could I know what works for me? Once I go live in '09, I will stick to a couple of different ideas that I have made my own. I'm narrowing it down......

My concern is that if I fail at what I finally settle on as my system, how will I know that it is the right time to research a different trading strategy? Will my concern of becoming a system jumper or Holy Grail seeker keep me from making a change I really need to make? Just thinking out loud a little here....This has been an interesting journey.....

Thanks for the post, it should encourage people to think a bit ...

Deepsouth
  • #3
  • Dec 15, 2008 6:40pm Dec 15, 2008 6:40pm
Systems Don't Work. I've tried a dozen this month alone & see my account dwindling. I really need you guys to post what you are using that works. Why won't you help me? I only want to be able to afford to put my kids through college.

Sigh: Another Panic Trader.
Trade Small & Only Raise the Ante as Your Life Allows.

Best wishes for the Vanity Lic Plate EURUSD... on some Italian Stallion
  • #4
  • Dec 15, 2008 6:54pm Dec 15, 2008 6:54pm
I say yes and no.

Personally, I trade with 37 different systems, 34 by EA, and of the 34 EA-traded systems, they are split into 6 different categories:

  1. Trending
  2. Ranging
  3. Breakout
  4. Counter-Trending
  5. Scalping
  6. News

I turn these groups of EAs on and off based on how I perceive the market. If I see a market in a trend, all the trending EAs will most likely catch it, but at different points. This is similar to a scaling-in method adopted by many traders. My trading style is more managerial than hands-on. Each of these EAs have a specific specialty (one of the six) and that allows me to assume the role of a general of sorts. These EAs are my soldiers and I simply tell them WHAT to do and WHEN to do it. I don't tell them HOW. The EAs know HOW to do their job.

Now, that being said, I will say that I've been at this for four years, 3 demo, and 1 live.

For a newbie, I suggest you familiarize yourself with a very specific pair. If you can trade that pair using only a coin toss as your entry, then you can start applying systems. The vast majority of systems on ForexFactory only focus on the entry, not on the exit. By being able to make money on a coin toss for a specific pair, you will be able to determine what system is good for you and what is bad. Ultimately, you should outlast any system which you develop or come across.

Anyway, that's my 2 cents.

  • #5
  • Dec 15, 2008 7:08pm Dec 15, 2008 7:08pm
i agree too. i was a system hopper when i start trading and it always burn my money. until now i stick with 2 system that make me feel confident and always work for me. As long it worked for me, i will use it.
For EA i am not good for it. i am not a programmer. i always test EA that i can find in this forum, it always never work for me.
  • #6
  • Dec 15, 2008 9:40pm Dec 15, 2008 9:40pm
Quoting Ronald Raygun
I say yes and no.

Personally, I trade with 37 different systems..
I agree you need more than one method. But what you are doing, RR, is far from system hopping.

And Trader_V: I agree with learning one system inside and out. When you find or invent one, and have consistent results and can trade it without effort, it'll be time to add another that'll work in different market conditions. After all, you wouldn't go golfing with one club.

But I know what you're saying: Most people don't learn their method well enough or give it enough time to work.

Think in terms of months and quarters, not hours and days.
  • #7
  • Dec 15, 2008 10:45pm Dec 15, 2008 10:45pm
all very well to say to stick to one system that works, but how would a newbie know which systems are working.

I think the most important thing is for a newbie to decide how much time he/she can devote to the system (other job, family commitments etc) - so which timeframe do I go for.

after that he/she would have to know which systems in his/her timeframe are working and what the expectations are for these systems over a considerable time in respect to drawdown, return etc.
these details are not (always) available.
if those details were available, the choice would not be that difficult and system hopping would be minimal.
  • #8
  • Dec 16, 2008 8:20am Dec 16, 2008 8:20am
Quoting deepsouth
Sort of....I just started my Forex studies in May. In order to find the trading style and time frame that fits me and my schedule, I have been guilty of moving from system to system in search of the one or two that fit me. But how else could I know what works for me? Once I go live in '09, I will stick to a couple of different ideas that I have made my own. I'm narrowing it down......

My concern is that if I fail at what I finally settle on as my system, how will I know that it is the right time to research a different trading strategy?...
Hi Deepsouth-

Nice post! This is the idea get people thinking a bit. Embarking on a trading career is no doubt a journey that has many ups and downs. So how does one go about finding or developing a system that is right for them?

Well you have ot start by taking a look at yourself and determine are you a tachnical trader or a fundamental trader. Once you have made that decision the next step would be to start researching your trading style of choice.

Within each style of trading there are many systems designed for each. My suggestion would be this: don't reinvent the wheel, if you are lucky enough to have someone who has been successful in this business and shares your trading style (technical/fundemantal) then you could possibly have them be your mentor. This helps cut down the learning curve a good bit. Additionally it is advisable to test different systems within your chosen style.

Now by test I mean select a trading methodology that has a complete trading plan. How to get in the market how to get out of the market and excercises proper money management. Give it a fair shake take it for a test drive and kick the tires. But trade it like it was originally designed to be traded before you start changing it. After you have given it a ride around the block a couple of times you will have a good feel it that type of trading methodology suites you or not.

I don't know of any trader who has become successful trading the first system they laid their hands on. I am not saying they don't exist I am saying I don't know of any.

But let's keep these thoughts going and see if we can't help get and keep folks thinking about some of the psychological factors of what makes them unsuccessful with a trading system.

Thanks for your contribution to this thread,
Vick
Nothing is impossible, with a willing mind!
  • #9
  • Dec 16, 2008 8:40am Dec 16, 2008 8:40am
I love a poll where you can choose BOTH options as your answer . . . classic!
  • #10
  • Dec 16, 2008 8:55am Dec 16, 2008 8:55am
Hi Bemac,
welcome to the wonderful, crazy world of Forex. There is a learning curve but you can reduce the damage and improve your results by learning a system and currency pair. Then demo it for awhile before losing anymore. No system is perfect. There is no "HOLY GRAIL". As trader_V has said try to learn 1 system for starters and then, if you wish, you can add more later,eh? It is so easy for new ones to be so overwhelmed by so many choices. I know the feeling. I'ts like standing infront of the cookie rack trying to decide which cookies to buy but theconsequences more costly.

I am personally having good success with FxJedi's thread "The Force 5min system". Read and study the whole thread, copy the indicators etc. He has 3 levels of the system. Learn the basic first. Also, he has a great chat room you can participate in and receive an abundance of support. Just try it on demo. FxJedi makes some 700+ pips/wk. His system works a high percentage of the time. (Remember nothing is 100%) He doesn't allow discussion on any other system or changes to his system. He says "if it isn't broke don't fix it". He also doesn't allow any discussion about any currency pairs other than EUR/USD. His thread and chat room have been a real blessing to me and I trust will be to you also. Remember demo,demo,demo,demo.... By the way his thread has a five star rating. There is hope for you.

May you have a great Christmas and God bless, Rod
  • #11
  • Dec 16, 2008 8:58am Dec 16, 2008 8:58am
Great post, Trader_V
  • #12
  • Dec 16, 2008 11:17am Dec 16, 2008 11:17am
Quoting billflet
I agree you need more than one method. But what you are doing, RR, is far from system hopping.

And Trader_V: I agree with learning one system inside and out. When you find or invent one, and have consistent results and can trade it without effort, it'll be time to add another that'll work in different market conditions. After all, you wouldn't go golfing with one club.

But I know what you're saying: Most people don't learn their method well enough or give it enough time to work.

Think in terms of months and quarters, not hours and days.
Right on billflet!!! This is what I am getting at exactly. Look we all know that markets change with different dynamics. Increased/decreased volatility and volume, economic cylces and trends. Bernake saying some crazy stuff etc etc etc...

But some things will always hold true. The markets will either trend or range. And as you become an advanced trader it would behoove you to have system of trading both types of markets. But in the end those who are starting out need to stick to one system and build from there.

Thanks for the post
Vick
Nothing is impossible, with a willing mind!
  • #13
  • Dec 16, 2008 3:53pm Dec 16, 2008 3:53pm
Quote
Additionally it is advisable to test different systems within your chosen style.

I guess in that regard I am doing just that. I definitely am into technical analysis more so than fundamentals. I am trying to gain basic knowlegde of the fundies that have major impact on currencies so as not to trade with my head stuck in the sand. But if I had to study fundamentals in depth in order to be a successful trader, well I probably would just take my toys and go home.....

I seem to keep gravitating back to the price action systems like Key to the Mint, Febs System II, and now TKPower8. These are where my energies are focused right now. All are rooted in price action, but with some minor twists. I have also found that I like 4 hour S/R lines for at leats 6 months on all my charts. It is simply undeniable that price reacts to these areas.

Thanks again for the thread Trader V.

Deepsouth
  • #14
  • Dec 16, 2008 6:04pm Dec 16, 2008 6:04pm
Quoting eagle47
Great post, Trader_V
Thanks Eagle! It sounds like you have stated to find your way in this business. Good for you! And thank you for your insightful post to Bemac

Merry Christmas to you as well,
Vick
Nothing is impossible, with a willing mind!
  • #15
  • Dec 16, 2008 6:12pm Dec 16, 2008 6:12pm
Quoting deepsouth
I guess in that regard I am doing just that. I definitely am into technical analysis more so than fundamentals. I am trying to gain basic knowlegde of the fundies that have major impact on currencies so as not to trade with my head stuck in the sand. But if I had to study fundamentals in depth in order to be a successful trader, well I probably would just take my toys and go home.....

I seem to keep gravitating back to the price action systems like Key to the Mint, Febs System II, and now TKPower8. These are where my energies are focused right...
You have clearly overcome some of the large hurdles with starting out. You have identified that you are a technical trader and the time frames that seem to suite not only your trading style but also your lifestyle.

You have found systems that you can identify with and you are working with them the way they were intended. I am not a huge fan of indicators myself but they do have their place with certain systems and trades who choose to use them.

Keep up the good work and keep moving forward. I am humbled that any information I may have provided here has helped you or anyone else in any way.

Cheers,
Vick
Nothing is impossible, with a willing mind!
  • #16
  • Dec 16, 2008 6:25pm Dec 16, 2008 6:25pm
Quoting eagle47
Hi Bemac,
welcome to the wonderful, crazy world of Forex. There is a learning curve but you can reduce the damage and improve your results by learning a system and currency pair. Then demo it for awhile before losing anymore. No system is perfect. There is no "HOLY GRAIL". As trader_V has said try to learn 1 system for starters and then, if you wish, you can add more later,eh? It is so easy for new ones to be so overwhelmed by so many choices. I know the feeling. I'ts like standing infront of the cookie rack trying to decide which cookies...
Thanks for the advice. I'll be sure to look into that. Meanwhile.... Devise your own system that works for you. Until you do, you are a Signal Consumer OR Selling Snake Oil... {Marketing 101. Know your audience}.

First time I've done this but what t Fc. I'm pissed.
My Money vs Your Money.

Pick a Pair & you I go head to head.
IF you are Willing to Sell & I am Willing to Buy, then we take opposite sides & Open a FF Public Trade Forum.

Could be the best endorsement your system may encounter.

It's up to you.

ps. I was welcomed to FF ~ 3 years ago & have been Trading for > 30 years so, Bring your Big Game.
  • #17
  • Dec 16, 2008 7:04pm Dec 16, 2008 7:04pm
Quoting Bemac
Thanks for the advice. I'll be sure to look into that. Meanwhile.... Devise your own system that works for you. Until you do, you are a Signal Consumer OR Selling Snake Oil... {Marketing 101. Know your audience}.

First time I've done this but what...
No disrespect meant here Bemac but...

I do not wish to have some type of argumentative posts in this thread. Your last post seems to be just that.

I do not see Eagle as being someone who is peddling a system of some type he is merely mentioning systems that he is working with which he has found here on FF.

I you choose to have a battle with someone, please take it off line and take it up with that individual via PM or such but not in this thread. I would like to keep this thread free of such slander and open to folks who are looking to contribute to those who may be less experienced and open for folks to ask questions in order to help hem become better traders and get away from bad habits.

Again I mean no disrespect but please respect my thread and its intended purpose.

All the best,
Vick
Nothing is impossible, with a willing mind!
  • #18
  • Dec 16, 2008 8:09pm Dec 16, 2008 8:09pm
sorry guys, still not familiar with some of the terms here.

What's EA anyway? some program to trade for you automatically?
  • #19
  • Dec 17, 2008 6:03am Dec 17, 2008 6:03am
Quoting hwsv07
sorry guys, still not familiar with some of the terms here.

What's EA anyway? some program to trade for you automatically?
Yes an EA stands for Expert Advisor. It is essentially programming code that you add to your MT4 platform just as you would add any other indicator and it will automatically trade for you.

I personally do not have much experience with them but some folks on here do.

Cheers,
Vick
Nothing is impossible, with a willing mind!
  • #20
  • Edited 8:21am Dec 17, 2008 8:06am | Edited 8:21am
Well I see what you are saying and I understand it.

but, I think & I tell people rather then just one system
it is WAY more important to do just one pair!!
get do know it ...
yes use one system to trade but learn from other at the same time.

I do mostly two pairs 90% of the time.

I do, do one main system WSS
but I do, in fact do others as well... 3 ducks & A break out system
& a simple candle system with a 5 ema.
and I am normally playing with one other system
I find because I have to think about a new system I learn.

what I have learn for diff systems is amazing
What I do, in fact still,is find one of the teachers on the net & do their stuff.
(for free)

3 ones I have used & like are
(I am not selling or have anything to do with any of then)
Because they give you videos of what they do!!
or at lease tell you why they do it

The 1st one is great.. you get only a few trades
but when they happen they are great

there is so much on the net you don't need to pay for anything

1. Break Out Trading Strategy
http://www.forexfactory.com/showthread.php?t=99395

2. Big picture”
http://www.youtube.com/watch?v=JoBrQ-D6xmw&feature=related

3. The Cowabunga System

http://forums.babypips.com/free-fore...ga-system.html

cheers

teb
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