This is a posting that I made 2 years ago on the SBFX forum but it still stands.
Hi,
Over the last months I recieved many times the same question..
Could you please help me in pointing me to a good system...or can you tell me wich system on this forum is best for me. Or wich of the systems you use makes the biggest profit.....
It is an important question so I wanted to open a topic on it because I think it will help some of you a little bit.
It is absolutly impossible for someone to say to you what system you should follow.
It is the same as I would say to you what you should eat or what clothing you should were or what car you should drive.
Each trading system has its own specific trading caracteristics.
People think that the important thing is to JUST FIND a profitable system. But it is not.
As Chuck Goslin writes in his book Intelligent Futures Trading p.15:
Before attempting any activity, examine yourself realisticlly.
Learn your capabilities; Recognize your desires.
Determine what you can and can not do.
Discover what you want and do not want to do.
Accept what you might and might not be able to do.
Acknowledge what you will and not will do.
To achieve the best results, find that point where your abilities and inclination, your capacity and desires, most closely overlap.
Only you, trough self-knowing, can discover this optimum point.
This all sounds like a lot of blah-blah but it is not.
To give you an important example:
If you are a person who is sitting all day long in front of his pc and you watch every tick developping on a chart and you try to follow the Hans123 or volatility breakout system (2 very robust and reliable systems) you will do very bad. The reason is that you will try to interveen when you see a position giving back profit or going in to loss. And an important rule is that you need to follow the rules of a system 100%
no matter what happens.
Once you started to interveen ( even if it saved you money) you have no longer a system. And you will see that the system over a longer period of time will do a lot better then you.
The same goes for swing trading systems. You have positions between 2 and 7 days. During that time you will see the price moves a lot in your favour or giving back profit). If you sit all day long in front of your pc you will try to interveen in those movements. On that moment you have lost your system.
So it is up to you to find out what you want and not want. What your capabilitys are. Write them down. And then start to look for a system that fits in your profile.
See it like this, you need to make a walking trip of 20Km. And you don't have any shoes. But you are very determind and whatever it takes you will and you gonna walk those 20Km. So you ask someone for shoes. The only thing he has is a pair of rubber wellington boots who are even 2 sizes to big. You think to yourself: if I REALY want something I will get there. Well that is not true. The chance that you will need to quit after 5km because your feet are full off blisters is very big. Even if it is not after 5km the chance that you will make it to the finish with those rubber boots is almost zero...
So you need shoes who will to do the job. Your shoes need to match your profil as a walker.
Same applys to a system. You need a system that fits your profile. Even your mind can be set in such a way that you say, that system is profitable but it does not fit my profile but I gonna follow it with the nescassery discipline no matter what it takes....I garantee you that over a longer period of time you will not succeed.
Never and is say it again NEVER try to change your personality to a system because after some time your personality will take the overhand and you will not follow that system anymore.
If you don't follow the rules of a system for 100% then you become a discressionary trader again with all the results of that sort of trading.
If you would be a good discressionary trader you would not be here looking for a system.
Don't get me wrong and I don't want to sound as a teacher but to many people are sitting here and are only looking for a system or a method or an EA or an indicator that could make them earn money( I see people using or testing EA's for weeks and they don't have the faintest idea or any clue what that EA does). They are not interesseted
in becoming good traders true gaddering as much knowledge as possible. And with this knowledge trying to build their own strategys or systems. They are only interesseted in trying to earn money and as soon as possible and it does not matter how or with what.
Those people will never walk the path of succes.
Earning money true following a canned system over some period of time is not the same as beeing a succesfull trader.
Succes comes with knowledge. Knowledge comes with experience. Experience comes with time and hard work.
With this topic I'm not trying to be a wise guy what so ever but I'm trying to help a little bit of those who are walking in the dark or who think they know more of trading then their neighbour and by this they think they are a trader.
And I hope this topic could help you a little bit in your quest to become a good trader.
Remember this: a good trader is not just a good trader. Once he is a good trader he becomes an expert on the field.
friendly regards...iGoR
PS. Or as I posted yesterday
http://www.forex-tsd.com/216586-post616.html
Most profitable Trading System?
