What kind of system are you using?

[skull9971]

Re: What kind of system are you using?

 

i think some custom indi that had been shared in this forum quite useful and actually works,still searchin for the right one..currently using basic system and happy with it :)

[Jagernaut]

Re: What kind of system are you using?

 

Trending, I use RSI ans set to larger length that is at least half of move.

Trading, I use StochasticRSI 13-8-4

[Mentos]

Re: What kind of system are you using?

 

I have found MY holy grail:

 

Trend Line

HH HL HL LL

Price Action

Fibonacci

Murrey Math

[fork4k]

Re: What kind of system are you using?

 

I agree with your original statement ... you really need to stick with a system for a while before knowing if its right for you. A big part of doing that is creating a business plan that will help you pre-determine:

1) Specific criteria for when to dump your current trading plan / system

2) Specific points when you will upsize your account size (eg: It could be as you execute a specific number of trades ... 10 trades ... 40 trades ... 70 trades ... 100 trades ... 200 trades you gain more confidence in your current trading system so you start trading with more money)

3) Specific metrics you are going to use to evaluate how good your system is (average expectancy (see some of Van Tharp's books for this), lake ratio (hxxp://www.seykota.com/tribe/risk/index.htm), cash flow etc)

4) A position sizing algorithm you plan to use (this should probably be independent of your specific trading plan).

5) What your beliefs are about the market

 

I'm gonna stress the importance of having a written business and trading plan again ... at least for me, that made a lot of difference in helping me be more disciplined with sticking with my trading plan and position sizing algorithm.

 

For me, my current trading plan is the one described in a book by Robert Miner - High Probability Trading Strategies (if you search on the forums for his workshop video, that gives you a very good description of his trading strategy as well). I've only been doing it for a few months now (completed 44 trades on last count) but I like it.

 

Ultimately you just gotta learn different systems ... find one that makes sense to you ... one that aligns well with how you personally think markets move (eg: with stocks, I don't care much about news ... or fundamentals ... or the economy ... I think they're all external to the market itself (which is just price and volume) ... why do I believe that? idk for sure ... it just makes sense to me. So, the dynamic trading approach Miner described in his book aligned well with my belief since it relied purely on price, volume, and momentum ... no correlations ... no externalities) ... and once you've found a system you think makes sense, write up a business and trading plan (they're different from each other imo, as I described above) ... and do it! The important thing is to stick with it till you get a clear signal it isn't working.