Day Trading & Forex Forum

£10kLoser

1. Take your average newbie trader.

2. Get him to make up a trading system.

3. Now, sell when the system says buy and buy when the system says sell.

This must make a profit - or newbie traders can make up a profitable system...

What's the flaw in the logic , guys?

If a system losses money, why not do the opposite and then we'll make money?

fifty2aces

A system is more than just a set of buy and sell signals - what about exits? Also slippage, spreads + commissions will always be a factor.

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Assumption is the mother of all ****-ups

Hotch

Most newbie trader strats will be 50/50 actually, and will lose on commission, slippage, spreads etc

Close, buy no cigar

£10kLoser

Exits are also buys and sells.

KillPhil08

Flaws - never tell the newbie this otherwise he'll reverse his signals.

£10kLoser

Ha! 50/50 - you should be so lucky....

Chorlton

Correctly identifying when to Buy and Sell is only one element to developing a profitable strategy.

Look at the Turtles as the classic example. Some made very good money, some lost all of it....yet they were supposed to be following the same rules.....

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A Fine is a Tax for doing something wrong. A Tax is a Fine for doing something right !!

Return of Capital should always be more important than Return on Capital

techinvest

The only flaw is that you said "A" newbie trader. What you need is a bunch of your average traders. Add it all up and you're golden. I can't disclose a lot, but those of you familiar with some of the components of the metatrader backend will recognize this. Here is a shot of the open loss on one of our metatrader demo servers. -$34M. All you'd have to do is take the opposite trades. Demo accounts especially as people blow those up at will.

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