The most profitable trading system

This is a discussion on The most profitable trading system within the Trading Systems forums, part of the Methods category; Drawdown is an important factor to consider when dealing with automation. Nothing over 20% for me. Preferably under 10%....

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Old Jul 19, 2016, 4:14pm   #16
 
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Drawdown is an important factor to consider when dealing with automation. Nothing over 20% for me. Preferably under 10%.
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Old Jul 19, 2016, 6:06pm   #17
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Originally Posted by metrader View Post
Obviously that 'small premium' would affect overall profit (there are 140 losing trades, so 140 'small premiums'), but still it could be a simple profitable system if there were no slippages and other kind of shenanigans (rejected entries etc. etc.)
i see now that over 70% of the trades are closed by the stop in this case

i was more thinking about a system that close the trades with market orders and use the guaranteed stop as a catastrophic stop (and no worry over the weekends)
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Old Jul 19, 2016, 8:05pm   #18
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metrader started this thread Some free trading strategies... if they're any good I wouldn't know - haven't tried them as yet

https://www.whselfinvest.com/en/trad...dingsystem.php
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Old Jul 19, 2016, 9:20pm   #19
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Drawdown is an important factor to consider when dealing with automation. Nothing over 20% for me. Preferably under 10%.

"IG has only had three
negative revenue days in the last five years "

http://www.iggroup.com/sites/iggroup...lres_jul16.pdf

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Old Jul 20, 2016, 6:50am   #20
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I am totally new to trading. So, I am much curious to know more about trading system, earning activity and more.
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Old Sep 28, 2016, 4:49am   #21
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What's the most profitable trading system of yours? How long have you been using it?

If you like to share, you can post it here in this thread... I'm mostly interested in simple & profitable systems
I recently finished developing my own trading system, so with the extra time I now have on my hands, I've just begun making comparisons to other systems that are out there, starting with a 5-Min Forex Scalping Strategy with Parabolic SAR and MACD.

Obviously, I don't yet know how profitable this system is, but I suppose if someone who does sees this post, they can add their comments. At the very least, it does look relatively simple and seems to hold promise.
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Old Sep 28, 2016, 11:03am   #22
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Originally Posted by Will Duxon View Post
I recently finished developing my own trading system, so with the extra time I now have on my hands, I've just begun making comparisons to other systems that are out there, starting with a 5-Min Forex Scalping Strategy with Parabolic SAR and MACD.

Obviously, I don't yet know how profitable this system is, but I suppose if someone who does sees this post, they can add their comments. At the very least, it does look relatively simple and seems to hold promise.
This will not work in the long run. Why? Because it is based on the market acting in a certain way.

The market does not act in a certain way, it acts in numerous ways and if you are serious about trading I suggest your learn the many facets the market present itself and trade it accordingly....Keep in mind the intention of the market is to make it as much confusing as possible, so I suggest you get ready.....GL.
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Old Sep 28, 2016, 11:26am   #23
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This will not work in the long run. Why? Because it is based on the market acting in a certain way.

The market does not act in a certain way, it acts in numerous ways and if you are serious about trading I suggest your learn the many facets the market present itself and trade it accordingly....Keep in mind the intention of the market is to make it as much confusing as possible, so I suggest you get ready.....GL.
if you build up enough experience and look at specific markets in the correct way .....they are not as confusing as most believe...in fact they are as predictable as hell

N
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Old Sep 28, 2016, 11:28am   #24
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Quote:
Originally Posted by Will Duxon View Post
I recently finished developing my own trading system, so with the extra time I now have on my hands, I've just begun making comparisons to other systems that are out there, starting with a 5-Min Forex Scalping Strategy with Parabolic SAR and MACD.

Obviously, I don't yet know how profitable this system is, but I suppose if someone who does sees this post, they can add their comments. At the very least, it does look relatively simple and seems to hold promise.
based on your posts to date Will I think the systems you are developing will kick the cr*p out of this kind of stuff......

N
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Old Sep 28, 2016, 11:30am   #25
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in my opinion you have to mix a few ingredients in to be a good consistent and profitable trader

I believe that some indicators used correctly will get you in the Trading Area/Zone

but for me its still Price action and bags of screentime / experience that helps you pull the trigger

N
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Old Sep 28, 2016, 11:32am   #26
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if you build up enough experience and look at specific markets in the correct way .....they are not as confusing as most believe...in fact they are as predictable as hell

N
how much will it cost us?.......

Should we be using one of your indicators to make it clear?

Only joking, how are you old goat?
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Old Sep 28, 2016, 11:37am   #27
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in my opinion you have to mix a few ingredients in to be a good consistent and profitable trader

I believe that some indicators used correctly will get you in the Trading Area/Zone

but for me its still Price action and bags of screentime / experience that helps you pull the trigger

N
They might but what is the point in using them, once you know how to read classic technicality you do not need them, they are late and they will only confuse a bit more.....
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Old Sep 28, 2016, 12:22pm   #28
 
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Indicators = stabilisers while learning the ropes

profitable trading system = through your eyeballs & in your brain
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Old Sep 28, 2016, 3:36pm   #29
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My 2 cents to this conversation.

The technicals be it indicator based or price structure based, are only as good as their alignment with market expectations. Market expectations are not driven by technical factors.

A technical trading system will always give a mixture of signals regardless of the inclusion of indicators. The profitability depends on the traders ability to find the right balance of managing costs, risk, and profit. The problem is market dynamics are in constant flux and if a trader doesn't tune into the changing variables then they can't expect to maintain the balance necessary to make money. This is why rigid systems fail and in fact why so many technical based traders are unprofitable. You can tune your methods until pigs fly and you still won't have an edge. Until you are able to digest and translate market information in a dynamic way you will forever lose money.
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Old Sep 28, 2016, 4:40pm   #30
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As an example for those learning to trade. Let's say you are in a short with 15 ticks in the green and another 15 to your target. Assuming of course you are day trading

The trade has a 15 tick stop but do you lock in profit or give some room? Locking in profit seems the sensible thing to do but a sudden change in context or order flow will likely take you out. If this trade was to work out for you then you need a good supply of sellers and no context changing events on the horizon. How do you know if those 2 factors are on your side if you don't know the current context and don't have sight on market changing events?

So you decide to lock in profit and the context changes from a data release or a scheduled speech (to name just 2). The change in context results in a momentary blip that causes your stop to get hit and then continuation to your target. So now you have effectively employed a protective strategy that has worked against your expectations. If the next trade is a loss then you might be flat on the day.

If you based your trade on market context then you might have employed a stop strategy that is really a failsafe instead of being protective. Keeping in tune with context you would have walked away with 30 ticks profit or perhaps more if the change in context further supported your trade. If the context was against your trade then you might have had the chance to get out of the trade before your stop is taken out and might have locked in profit.

The context could have been neutral to your position but it might also stop sellers who you need to get to your target because they now feel the potential is no longer there. Now do you sit on the trade or do you get out. If you know the context then the decision should be clear or at least you should be aware of what's happening.

You have to be dynamic and you can only be dynamic if you tap into the same information that drives buyers and sellers. A technical setup could be perfect but if there are major market moving events on the horizon then the question should be is this trade valid.

Be dynamic in your trading decisions and you will have more success.
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