Whats the obsession with systems? Why dont more people pattern trade?

[cryten]

cryten,
surely some consideration has to be given to the entry
If you don't know why and where you entered it makes your exit as difficult as your entry

ya and after spending 3 years perfecting my entry guess what I found out haha it meant jack because I hadn't a clue when to exit. I am not joking my entry is 80 to 90 % "accurate" but then you have to factor the hard stuff in,ie the exit and also R:R.
Well I thought if I get it "right" at least for 15 points 90% of the time I should just go for 10 TP but then what SL do I need to achieve that 90% accuracy? And so on. Again my 02 cents but way to much emphasis is placed on entries and I wanna pull my hairout when people indi bash because their only 10 % of the puzzle, perhaps learning the rest would help as well?

 

[cryten]

I'll add a trading buddy of mine makes his full time wage (including 12,000 pips last week!) trading euro yen in 5 minute charts just on the cross of a 5.3.3 stoch. He has a talent for exiting on price action. Trading is an art, you don't just expect to pick up a hammer and some nails and expect to build a house?

 

[lote_tree]

This thread reminds me of religion. If you don't belong to a paticular religion there's got to be something wrong with you.

A friend of mine has a day trading system that is fully automated and gives him an average win rate of 83.6% with an average profit rate of 3.4 x risk. He has audited accounts for the past five years to prove it. All he does is switch on the computer each day and his code does the rest. He's offered me his system for free as we are childhood buddies.

Some of you will be proud, I've turned down his offer because his system is full of indicators :smart:. I made the correct choice by sticking to chart patterns where I'm getting a 52.7% win rate with an average profit rate of 1.35 x risk because I like my religion.

Then again when thinking about it, the forbidden fruit does sound tempting.

I know what most in this forum would do in my hypothetical situation

 

[cryten]

Your right lote, and that's what probably annoys me about it. There are many ways to skin this cat.

 

[JTrader]

Pattern trading using S/R & candlesticks is following a PRICE BASED SYSTEM really.

Sure, IMO it is much better than using technical indicators such as MA's, rsi, adx etc. as every decision you make is based on what price is doing, not what a bunch of technical indicators overlayed on top of price are doing.

 

[TomTom]

Trade breakouts on daily,weekly, monthy prices, Gaps, Spikes, roumour trading just like pre election rally/intrest rate dessision this week.
Simple scalping methods dose it for me..
There are some good TA systems out there with built in risk management.
Some how I prefer manual trading and not automated.
Keep it simple, know your exit piont before you enter ....is the key to capital protection

 

[JTrader]

I trade just naked charts, no chartpatterns, indicators, nothing!, and i perform extraordinarily well...

Thats good if so.

For me, becuse S/R plays such a key role, i could not trade a cart naked, without drawing horizontal lines from S/R, otherwise, i wouldn't know where to base exits on etc not so bad if on the same screen width of candles but once you start approaching S/R from further back, lines help.
S/R plays a key role in price activity.

 

[cryten]

On my chart I use 1 modified moving average. In time I probably won't need it but it allows me to see opportunites instantly and filters out most of the "bad" signals. If I was not happy with this system I'd go back and look at harmonics again probably. But indicators can be used profitably but I guess you need to look outside the box and not macd crosses etc.

 

[cryten]

Oh and I also draw the odd trendline and s/r when I see it. Nice trade yesterday on the FTSE on the break of an intraday trendline.

 

[Black Swan]

bump, one of the first posts I read on T2W..

 

[FXTrend240]

Nearly all the posts I read are about systems. Everyone wants a system. Usually one thats based on some indicators and rules etc...And then you hear that no system continues to work all the time and needs to be adjusted.

If thats the case then why do not more people trade price action and patterns only?

There are a few very reliable chart patterns that can be applied to intraday charts that have a high success rate and yield a good amount of points.

Despite this everyones still looking for a system based on some indicators or whatever. Why doesnt everyone go back to basics and trade what they see? Thats price action, support/resistance and use chart patterns for entry/exits.

No wonder 95% of traders lose. Its not supposed to be that complicated. Those who are loosing, I suggest take a step back and remove those rose tinted spectacles. Watch the market long enough and trade using the chart patterns and you will acquire something that cannot be taught.

Its called subconscious market knowledge. Use chart patterns and let the SME apply itself and you will reach a level where you know where the market is going before it gets there.

Obviously you will be wrong on occasions, but with good money management you will be able to keep losses small.

Stop looking for the holy grail indicator or system. There isnt one. Imo the way to trade described above is the closest anyone will get to a holy grail ever, yet very few people trade using only the basics.

Baffles me..

I've heard these types of things in posts on forums more than i've heard anything about systems.
'basics, trading's easy, price is king, keep it really simple guys, risk 0.001% per trade, psychology is everything, indicators suck,pin bars rule,funnymentals are impossible,there's no magical formula '

not that i disagree with price action but whenever people hear' it's so so easy, it's actually not that hard, pretty easy'
next thing you know somebody is going to quote me and say' it is easy, actually'

 

[Benton D Struckcheon]

An EKG measures heart rate from 12 different electrodes, and the graph coming off each of these electrodes is different.
Doctors read these to see if you have a problem. Now, they could just put the stethoscope up on your chest, listen, and try to figure it out from that, and from measuring your heart rate by pressing against your wrist. But since the EKG, none would merely rely on listening through a stethoscope, or any of the other "analog" methods. Instead, they rely to a large extent on what you might call "technical analysis" of a chart, and the rules for interpreting this chart are pretty clearcut, although there's controversy of course about some of them, and of course even with clear rules some doctors are better than others at analyzing the charts.
There are doctors who could diagnose a dead man walking from 200 feet with deadly accuracy and no need of a chart, same as there are snipers who could shoot the asshole off a rat from the same distance. But generals don't solely rely on these, and no one would put their lives on the line on the off chance they happen to have an exceptionally good doctor.
If you don't do this for your health, why would you for your wealth? Unless you really are that exceptional doctor/sniper/whatever.