Why we have innovated so many trading system? | Forex Factory

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Why we have innovated so many trading system?

  • #1
  • First Post: Nov 8, 2009 8:37am Nov 8, 2009 8:37am
In every forex forums, i see many new innovative trading systems...why it is so complicated?
  • #2
  • Nov 8, 2009 8:45am Nov 8, 2009 8:45am
Quoting kingfisher
In every forex forums, i see many new innovative trading systems...why it is so complicated?
99% of them dont work because they are not tested on sufficiently enough data. They are not systems, they are only ideas for possible systems and almost all of these ideas turn out to be unusable.

Finding a working system is hard because there are so few.
  • #3
  • Nov 8, 2009 8:45am Nov 8, 2009 8:45am
because people love complicated things.. there so so shiny.. ..

its so easy .. trade with the trend .. cut losses short.. and let profits ride...



lol
  • #4
  • Nov 8, 2009 8:48am Nov 8, 2009 8:48am
Quoting PrymeTyme
because people love complicated things.. there so so shiny.. ..

its so easy .. trade with the trend .. cut losses short.. and let profits ride...



lol
2x
  • #5
  • Nov 8, 2009 8:54am Nov 8, 2009 8:54am
Quoting PrymeTyme
its so easy .. trade with the trend .. cut losses short.. and let profits ride...
Ok, lets make an example:

What is the trend for EURUSD, when would you enter, where would you cut losses, how far do you expect it to run.
  • #6
  • Nov 8, 2009 9:09am Nov 8, 2009 9:09am
EUR/USD .. Mayor trend is Bullish .. go long @ 1,48565 .. -50 pip SL (H4)

trend traders dont use .. Take profit points stay in the trade as long as its moving the favor of your position.. ... use trailing stops.. 20 pips.. or wahtever your MM says...
  • #7
  • Nov 8, 2009 9:28am Nov 8, 2009 9:28am
Quoting kingfisher
In every forex forums, i see many new innovative trading systems...why it is so complicated?
It is human nature to make things complex.

"Our life is frittered away by detail. Simplify, simplify." Henry David Thoreau
  • #8
  • Nov 8, 2009 11:32am Nov 8, 2009 11:32am
Unreasonable expectations and lack of patience.

We want more, faster. A small edge takes a large sample of trades to prove itself. People expect their accounts to go positive immediately with a perfectly smooth, rising equity curve with no tolerance for the inevitable drawdowns. Not everyone of course. There are a few real bulldogs here who work relentlessly on their methods, like Bemac and Cora--just to name a few.

All that plus what Extraction said.
  • #9
  • Nov 11, 2009 8:02pm Nov 11, 2009 8:02pm
Quoting billflet
Unreasonable expectations and lack of patience.

We want more, faster. A small edge takes a large sample of trades to prove itself. People expect their accounts to go positive immediately with a perfectly smooth, rising equity curve with no tolerance for the inevitable drawdowns. Not everyone of course. There are a few real bulldogs here who work relentlessly on their methods, like Bemac and Cora--just to name a few.

All that plus what Extraction said.
Traders are led to believe they can build a better mousetrap. Most brokers offer a vast array of indicators and information for their clients. Ever see that commercial with the baby trading the account? What message does that send to the public? What is the truth?



"During the five-year market cycle from 2004 to 2008, the S&P 500 outperformed 72% of actively managed large-cap funds, the S&P MidCap 400 outperformed 76% of mid-cap funds, and the S&P SmallCap 600 outperformed 86% of small-cap funds. (For small-company investors, that’s a huge difference!)"


"We’ve seen clear evidence in other articles that mutual funds are bad at managing your money. Not only do most lose versus index funds, but the winners don’t tend to repeat, instead dropping randomly back down the ranks.

The difficulty for individual investors trying to beat these professionals is two-fold:

 

  1. You do not have the time, experience, or relationships to match professional money managers
  2. You’re risking your own money, so you don’t get to draw a salary from other people’s money during a bad year (or a bad decade)."



In order for these people to get you to buy their services they have to make you believe that you can make money by trading. That belief keeps you coming back even after you lose. Then they convince you to that you need them to show you the way to make money because now you believe trading is not simple. They have waves, dots, lines, etc... Now you want them on your chart. Your charts are now like the professionals', right?

And the cycle repeats...

  • #10
  • Nov 11, 2009 9:00pm Nov 11, 2009 9:00pm
Quoting PrymeTyme
because people love complicated things.. there so so shiny.. ..

its so easy .. trade with the trend .. cut losses short.. and let profits ride...



lol
x3 by the 4 power.
  • #11
  • Nov 11, 2009 11:48pm Nov 11, 2009 11:48pm
Most of us just can't believe that making money trading can be done so simply. We equate complication with sophistication, efficiency, and quality. While that may true in some areas, it's not true in trading.

As mentioned, get in with the flow of the market and don't let your losers overwhelm your wins.
  • #12
  • Last Post: Dec 12, 2009 7:08am Dec 12, 2009 7:08am
Quoting Dopey
Most of us just can't believe that making money trading can be done so simply. We equate complication with sophistication, efficiency, and quality. While that may true in some areas, it's not true in trading.

As mentioned, get in with the flow of the market and don't let your losers overwhelm your wins.
Wise words...

Cliches are not always harmfull: "trading is SIMPLE, not EASY"

Cheers!
Many share my views with me. But I don't share them with them...
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