why do people here like simple systems | Forex Factory

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why do people here like simple systems

  • #1
  • First Post: Apr 9, 2017 9:18am Apr 9, 2017 9:18am
more simple more porpular..
  • #2
  • Apr 9, 2017 9:32am Apr 9, 2017 9:32am
Very good question. I think most people enter trading thinking that they can make money just by opening a trade whenever they see the green line cross the red line (of whatever indicator is currently in vogue). This is of course nonsense so the real question is why experienced traders start these 'simple system' threads that give false hope to newbies.
  • #3
  • Apr 9, 2017 10:24am Apr 9, 2017 10:24am
You can't use something you don't understand..
  • #4
  • Apr 9, 2017 1:45pm Apr 9, 2017 1:45pm
because its worst to learn complicated and losing systems.
  • #5
  • Apr 11, 2017 1:26pm Apr 11, 2017 1:26pm
I would argue that people want to complicate their strategies too much. Adding extra indicators like it makes all the difference.
If you look at strategies with too many components, they tend to be very fragile and not very robust. In backtesting they tend to break over a large sample of data, while the more simple ideas tend to either really suck, or actually work well.

I've noticed that many "simple strategy" posts starts simple, and then progress in to a complicated and fragile monster. Sometimes the owner of the post even left because most traders want more complicated strategies. Not saying that they can't work, but from my experience simple strategies tend to work for a longer period.

One last point, just because a strategy is simple, doesn't mean that it's an easy way to trade.
  • #6
  • Apr 11, 2017 1:43pm Apr 11, 2017 1:43pm
Quoting notouch
Very good question. I think most people enter trading thinking that they can make money just by opening a trade whenever they see the green line cross the red line (of whatever indicator is currently in vogue). This is of course nonsense so the real question is why experienced traders start these 'simple system' threads that give false hope to newbies.
Perhaps 80% of the trading is not about the strategy, but the mindset of a trader. If you have a profitable strategy, with less than 40% winrate, I bet people are going to struggle when hitting their SL 10 times in a row..
  • #7
  • Apr 11, 2017 4:03pm Apr 11, 2017 4:03pm
Because human nature wants to make the most money in the shortest amount of time with the least possible effort.

Why bother reading academic papers on market microstructure, or spend hours every day marking up charts or studying bank and economic reports, when your br0ker says you can become a millionaire by simply trading a moving average cross?

If a profitable system is simple enough to be automated, mindset becomes a non-issue. Run an EA on a VPS and learn how to play golf.
  • #8
  • Apr 11, 2017 4:43pm Apr 11, 2017 4:43pm
Quoting hanover
Because human nature wants to make the most money in the shortest amount of time with the least possible effort. Why bother reading academic papers on market microstructure, or spend hours every day marking up charts or studying bank and economic reports, when your br0ker says you can become a millionaire by simply trading a moving average cross? If a profitable system is simple enough to be automated, mindset becomes a non-issue. Run an EA on a VPS and learn how to play golf.
Even with an EA you still suffer from drawdowns. You still have the ability to turn the EA on and off, so my take on EA's is that you still leave some discretion to the trader.

I have not read any academic papers on market microstructure or pay attention to anything the banks are doing. Yet, I'm still doing just fine trading.

There are many ways to skin a cat.
  • #9
  • Apr 11, 2017 10:43pm Apr 11, 2017 10:43pm
Trading the naked charts, is it system simple or complicated ?
  • #10
  • Apr 12, 2017 12:04am Apr 12, 2017 12:04am
Quoting SuperPip
Trading the naked charts, is it system simple or complicated ?
does it make money ?
  • #11
  • Apr 12, 2017 10:24am Apr 12, 2017 10:24am
Simplicity just works. The more complicated system you use the bigger is the chance to miss something and screw the whole thing up. For example, I have always been amazed by traders who add gazillion number of indicators to their charts… million colors and lights flashing in front of their faces and in the end of the day they can’t even catch the signal when it occurs because they just haven’t noticed it, courtesy of the colorful mess on their screens.
  • #12
  • Last Post: Apr 12, 2017 10:32am Apr 12, 2017 10:32am
That’s really true, traders are interested here simple trading strategies! Whatever, the qualification of trading strategy is profitable or not! Whatever, I am using one of the most popular trading strategy Price Action, I easily can understand market supply and demand according to my PA knowledge! Besides, I use only EMA50 for dynamic support and resistant levels! It’s my trading system.
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