Trade system as a special and individual approach to trade
Trade system as a special and individual approach to trade
I can give a definition of a trading system. Trading is characterized by some actions. Market analysis and receiving a trading signal, placing an order, maintaining a position, possible adjustment of its volume, final fixation of profit or loss. A systematic approach involves orderliness and a clear relationship between these actions.
If a trader bought something, then he must have a clear and logical reason for this. Options like "It seemed like I don’t know why," are not suitable here. And if a trader closed a profitable position, then this should be a consequence of the forecast for a possible decrease in price and a signal for a completely logical profit fixation.
Many forex traders somewhere repeatedly read that it is necessary to trade only according to the system. Otherwise there will be no profit. Probably, the majority not only does not understand, but does not want to understand that their systems can drain deposits not only along with informal approaches, but also more than them. For many, such ideas are unacceptable, because for a long time they memorized those that seem to be the only true theses about system trading.
You might think about how traders usually come to systemic trading. To begin with, they invent and find this system somewhere. Then they begin to test it. Someone is an adviser in the tester, others are simply manually on the chart. Most systems have no preconditions for being profitable. But this is not important for traders, they think that if the test shows a profit, then the system is also profitable. To many, this approach seems quite logical, because they don’t understand where they came from.
And so, a trader comes up with some combination of patterns. Then it will find or create an algorithm in the form of an mql advisor. Begins testing on a plot plot. Choose different periods, someone can test in recent years, while others say that a month is enough.
The algorithm begins to merge, traders, seeing this, begin to change parameters. And so on until the result seems appropriate to them. And what’s strange here is that most people don’t see the same approach in this approach as coin trading.
Suppose it occurred to someone to buy and sell after certain sequences of bullish and bearish candles. However, he has no idea why this price should rise after certain fluctuations. But changing any parameters, he will one day achieve the number of matches he needs. And then he will start trading in real life, thinking that they will be with him for a long time.
Similarly, someone can throw a coin 10 times and make take profit and stop loss at 100 points. And then look at the schedule, what would happen if he woke up in the morning and sold and bought in response to tails when the eagle fell. And so he looked and saw a loss in the results of this hypothetical trade. What will he do next? He will once again hold a series of throws and will again begin to check that it is in the trade. One day he will really like the results.
But many here still realize that something was the result of meaningless coin tosses, and that they were only suitable for that month. But they will not realize that most of their trading systems are the same.
There are still a large number of traders who like the idea that market forecasting is hopeless. And that you just have to strictly trade on systems that showed profit somewhere. It is understandable, because many are disappointed in forecasting methods.
If you observe the trading of many traders, you can see that often their systems give worse results than trading those who themselves do not know how they trade. But it is stable, and you can see a gradual and confident decline in funds. Apparently for the reason that their clear systems, superimposed on market realities, give a completely logical result. Because the sequence of quotes is too weakly different from high-quality sources of entropy, in other words, from randomness.
It should be understood that the trading system must have reason to consider it profitable and trade on it. And they don’t just need to look for them on the graphs, sorting out combinations and optimizing their parameters for these graphs. It is necessary to look for objective and logical reasons for price changes, based on the theory of supply and demand, fundamental analysis.
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