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What Defines a Good System?

  • #21
  • Oct 29, 2010 12:42am Oct 29, 2010 12:42am
@Sauron: Great post - as always. IMHO.

@Intu: likewise.
  • #22
  • Oct 29, 2010 12:49am Oct 29, 2010 12:49am
A good sytem to me is one that blends into your trading personality.
Basically one that's customized to how you like to trade and of course is profitable. Although I think the fit is more important than the profitability.
  • #23
  • Oct 29, 2010 1:53am Oct 29, 2010 1:53am
What defines a system good or bad is its profitability only. Not percentages of account gained. A good system should be universal (works on all instruments and all timeframes), and robust (stands the tests of time). These characteristics are to be searched when you want to create system to trade live.
Once you set a universal and robust methodology, then how much you gain (or lose) per day, week, month or year is totally up to you. You are the only one who can tell how much of a drawdown you can take mentally (pain), and financially (too much capital damage to recover), in pursuit of bigger profitability percentage.

Greetings!

Coronajazz!
You wont survive without preserving!!!
  • #24
  • Oct 29, 2010 2:58am Oct 29, 2010 2:58am
hannover, thanks.

Quoting smile1
A good sytem to me is one that blends into your trading personality.
Basically one that's customized to how you like to trade and of course is profitable. Although I think the fit is more important than the profitability.
I have a hard time understanding how a system should fit a trader's personality. The only way of making money is identifying inefficiencies and they have nothing to do with the personality of Joe Trader. Either Joe Trader adapts to the market or he loses, it doesn't get any simpler.

Anyone who wants to beat the casino must play blackjack, learn to count cards and understand some math. If blackjack doesn't fit his personality (lol) but roulette or dices rather fits, he will try in vain searching for the winning system.
  • #25
  • Oct 29, 2010 3:30am Oct 29, 2010 3:30am
Quoting jaws810
1)What are the attributes of a good system?
2)What would it take to convince you that the system works?
3)How long would it have to work before it could be considered a good system?
4)How profitable would it have to be?

I'm looking for your opinions, here are my answers
1) It must have definitive entry/exit points, no guessing. It must be understandable to someone with no college degrees. It must make at least 5% a day average. It must work in all market conditions.
2)It would have to turn a micro account into a standard account in less than a...
I`m shocked to hear about 5% a day (or maybe you mean the demo account???))))

what I think - for really good system is just one definition - it must show the excellent performance during the longest possible timeframe (at least 5-7 years).
  • #26
  • Oct 29, 2010 9:49am Oct 29, 2010 9:49am
I think, for me, consistency is a very important part of a good system. Moreso than profitability. You don't want to be up 100% the first year and down 80% the next and so on. It would be good to find a profitible system where the drawdowns are small, even if the gains are small as well.
  • #27
  • Oct 29, 2010 10:28am Oct 29, 2010 10:28am
Quoting dfptommyj
Money doesnt make a man rich my friend, I just make enough to be happy, take 5 stay alive! good luck...
That's true happiness is the goal. So maybe the answer to the question is that the best system is the one that makes you happy when you're trading it. So is there a system out there that makes you happy to trade it win or lose?
  • #28
  • Oct 29, 2010 3:37pm Oct 29, 2010 3:37pm
Quoting dfptommyj
oops, got my 5% just now in my retail account as we speak and the day only started 3 H ago, by the way like I said this is 5% min. every single day, just do some thinking guys...
How long have you been making a "minimum of 5% every single day" for?
  • #29
  • Oct 29, 2010 4:20pm Oct 29, 2010 4:20pm
Quoting dfptommyj
what is so shocking about 5% a day, 5% a day is a minimum, and whats a diference betwen demo and real, price moves the same way...
Nothing is shocking about 5% a day in and of itself. If you force it and demand 5% everyday tho sooner or later it will bite you. It's unrealistic to think you can make 5% everday. You are likely over-leveraging to do it.

We don't have the luxury to consult with the pros of Lehman Bros about the pros and cons of over-leveraging do we?

The bigger question is why would you come here if you have such a system? Alterior motives are a dime a dozen ya know?
  • #30
  • Oct 29, 2010 4:28pm Oct 29, 2010 4:28pm
Quoting smile1
That's true happiness is the goal. So maybe the answer to the question is that the best system is the one that makes you happy when you're trading it. So is there a system out there that makes you happy to trade it win or lose?

I'd pick the monopoly game at McDonalds... you play by buying food... a need is settled plus you have a chance to win some big $$$.

No matter if you win or lose, you leave content and happy. Although you may need to go on a diet when the game ends.

Budup up up ah, I'm gettin fat!
  • #31
  • Last Post: Oct 29, 2010 6:17pm Oct 29, 2010 6:17pm
Quoting pip_seeker
Nothing is shocking about 5% a day in and of itself. If you force it and demand 5% everyday tho sooner or later it will bite you. It's unrealistic to think you can make 5% everday. You are likely over-leveraging to do it.

We don't have the luxury to consult with the pros of Lehman Bros about the pros and cons of over-leveraging do we?

The bigger question is why would you come here if you have such a system? Alterior motives are a dime a dozen ya know?
you are 100 % right, I'm out of here, just disregard all I said, I was joking, 5% a day it is impossible.
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