If you must buy a trading system...

This is a discussion on If you must buy a trading system... within the General Trading Chat forums, part of the Reception category; Originally Posted by new_trader You car analogy is misapplied. Trading is analogous to driving and not which vehicle you use. ...

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Old Mar 14, 2008, 9:25am   #29
 
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Quote:
Originally Posted by new_trader View Post
You car analogy is misapplied. Trading is analogous to driving and not which vehicle you use.

"If you want to drive a fast car, it's always better to learn HOW TO DRIVE yourself"

That's better!
Nope, that's wrong and over-simplified. In reality both analogies are at work -- the driving and the engineering.
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Old Mar 14, 2008, 9:43am   #30
 
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Originally Posted by zentrader22 View Post
@new_trader,

concerning discretionary trading you are right!

But my analogy applies only to "system trading" using so-called mechanical systems.

And in that situation of systematic trading (ideally "trading without emotions") the quality of the used system (or car...) is the important part!

bye,
zentrader
No, it's only about driving the car. You are providing an automated driving package for people who are terrified of crashing and as a result never bother trying to learn how to drive properly or safely. I was terrified the first time I ever drove on a main road. Up until that time I only drove my dad's car up and down a very quiet dead end road. But with more and more practice and experience I grew confident driving on any road, in all weather conditions, regardless of the type of car or traffic conditions. Not only that, I’ve driven in different countries too. Even in America where they drive on the wrong side of the road! Do you see or not see?
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Old Mar 14, 2008, 9:51am   #31
 
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Wise trader once said....

Manage both time & money wisely, else both will run out.
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Old Mar 14, 2008, 9:56am   #32
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Trading systems...

@new_trader,

it seems, that you have never tried system trading and i talk about 100% system trading.

In this case there is no special trading experience necessary, because you have only to tranfer the long and short signals of your system into your trading platform (in totally automated trading even this last action of control will be triggered without you).

Clearly you have to know what you trade concerning risk and money management.

The only thing you have to control concerning the kernel system are the backtest or monte carlo simulation generated drawdowns. If they exceed in real trading the tested range,the system perhaps is broken. But that's a system immanent property of mechanical systems. You can't predict the future system behaviour as you can't predict your own future - that's the risk of life!

bye,
zentrader
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Old Mar 14, 2008, 9:58am   #33
 
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Originally Posted by Splatter View Post
Nope, that's wrong and over-simplified. In reality both analogies are at work -- the driving and the engineering.
Nope, don't thinks so. Trading and driving are abstract concepts. Hard to explain...it's almost like the car or vehicle is created instantaneously to adapt to different conditions. You don't build 'A CAR' before you start driving and hope it is suited to every condition you encounter. It's more like a James Bond car that can morph into different vehicles, like a boat if you need to cross a river or a plane if you need to cross a gorge and a Ferrari if you need to impress some hot babes.
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Old Mar 14, 2008, 10:03am   #34
 
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This is not a criticism to those who sell "Systems" whether Black Box or not, but even if one is sold with good faith and has proven to be profitable up to that date, there is absolutely no way of knowing how long into the future it will remain so.

I think everyone would agree that the Markets are dynamic and constantly changing, therefore to expect the purchased system to offer consistant and constant returns is naive.

Therefore, I fail to understand why anyone would want to pay a lot money for something which has a limited lifespan especially as the only way to know it has exceeded its own lifespan is when you keep constantly losing, which then raises the point as to what stage the system should be abandoned altogether.

At least when one sets out to develop their own system, as part of the learning process they will learn how to adapt to new Market conditions and hopefully keep the system performing in one form or another,or at the very least understand why it is not performing.
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Old Mar 14, 2008, 10:03am   #35
 
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Quote:
Originally Posted by zentrader22 View Post
@new_trader,

it seems, that you have never tried system trading and i talk about 100% system trading.
zentrader



Why do you think I hate them so much! I suppose you've never tried learning to trade properly
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