Trade your plan

[oildaytrader]

An oft received piece of wisdom is to trade your plan and plan your trade. Do this with discipline and you cannot (or should not) fail.

Can anyone spot the problem with this?



(footnote: oops here we go again questioning received wisdom from above. I heartily expect many catty comments lolz)

Need consultation with a trading shrink on making a plan to handle yourself after losses,on mixed signals, changing market behaviour/patterns and how to handle it and handling greed and fear applied to the trading plan.

If the plan is revised shrink needs to advise on handling all above aspects of revised plan.


If plan b fails , seek advise from trading shrink on trading instincts without a plan.

 

[barryb]

Markets change,methods (including well known ones) become obsolete and all trading systems fail sooner or later.The game plan will sooner or later become redundant, next plan is to trade on instincts,revenge trades and lost it all baby plan.

Thats y work on fully automated systems to cater for the black swan.

Wrong. Trade a strategy/system which is psychologically difficult to execute, with a positive expectancy, and you will always make money in the long run. E.g - trend following. Reason = the markets will always be made up of humans, or algos devised by humans, hence why the most difficult systems psychologically to trade will always come out on top. Theses require extreme discipline, extreme patience and extreme emotional control, which a very small % of traders exhibit consistently.

 

[DionysusToast]

Nailed it.I design dynamic automated systems.

How many of them are running live using real money ?

 

[oildaytrader]

How many of them are running live using real money ?

One major system (consisting of nine robust and different market systems) is running with real money.It was backtested since 2001,forward tested and on live since january 2009.

There are three other major systems in implementation stage.

 

[oildaytrader]

Wrong. Trade a strategy/system which is psychologically difficult to execute, with a positive expectancy, and you will always make money in the long run. E.g - trend following. Reason = the markets will always be made up of humans, or algos devised by humans, hence why the most difficult systems psychologically to trade will always come out on top. Theses require extreme discipline, extreme patience and extreme emotional control, which a very small % of traders exhibit consistently.

It is practically possible to run such systems manually , when we as human beings are smart at choosing easy way out?

There are very simple methods which are easy to execute ,which have survived the test of time and remained consistently profitable.These are also fully automated and proprietary.

 

[barryb]

Markets change,methods (including well known ones) become obsolete and all trading systems fail sooner or later.

There are very simple methods which are easy to execute ,which have survived the test of time and remained consistently profitable.

Is this not somewhat contradictory?

 

[oildaytrader]

Is this not somewhat contradictory?

True.

I was comparing that to one of my proprietary systems kept for my own use,however it is untrue with all the free systems,published systems and commercials systems sold.

These type of systems are kept secret by traders.These systems took years to analyse and develop,and publishing them would mean bidding on higher bars for the developer.I hope you understand.

 

[oildaytrader]

If a trader is very knowledgeable and very highly skilled,very flexible,sharp,adaptable ,with strong
will power and analytical skills , and can design and quickly develop methods/update methods to beat the market,the trader can be consistently and highly profitable.This is an exceptional combination of skills possessed by very few.

Need to be smarter than an old car salesman , more a trading mercenary.

Methods are very personal to each individual trader, that is why they work for the people who designed them.Every trader is an individual and sees everything differently,trades differently and executes trades differently.