The Best Trading System

What do you like or dislike on this thread?

  • Like: Trading Theory, Psy Ops, Myth Busters

    Votes: 22 37.3%
  • Like: Trading Systems

    Votes: 20 33.9%
  • Like: Everything on this thread

    Votes: 32 54.2%
  • Dislike: Too much theory, not enough actionable items

    Votes: 4 6.8%
  • Dislike: Systems discussed are found as useless

    Votes: 1 1.7%
  • Dislike: Everything on this thread

    Votes: 2 3.4%

  • Total voters
    59

vijkris

Learner and Follower
Added a Poll (To get your honest feedback, to improve my Free Gyan to fellow Traderji members) - Please vote, and please don't hesitate to throw black inc on my face if I deserve the same. I need your feedback to improve my posts.
But now the mystery deepened. Who voted as dislike ? ?

And who are those 7 who liked everything in this thread ? :D

U should have made poll public.

I have not voted, as i didn read the full thread.. only psych, max excursion parts i read and liked. :thumb:
 

dreammerchant

Well-Known Member
Added a Poll (To get your honest feedback, to improve my Free Gyan to fellow Traderji members) - Please vote, and please don't hesitate to throw black inc on my face if I deserve the same. I need your feedback to improve my posts.
Poll? I couldn't see any poll. Vijkris, can u redirect me?

DM
 

Tuna

Listen and act, don't ask it, it doesn't oblige
Trading Psy Ops # The Defence is more important than Offence

In a game of chess or football or even in a war between 2 nations, offence hogs the limelight. When we watch a match of cricket, we are more focused on watching the player hitting a 6 or 4 / or our bowlers taking wickets. But do we really cherish when a Batsman blocks a Yorker or leaves a good off-swinger. I guess the answer is no.

Because we are result driven and want winning events more than the one which let us stay alive. This is one of the AAM AADMI (apolitical) habits which has been the target of the market maker. So we need to focus on the defence area of trading. One is very simple and well known – STOP Loss or TSLs, this I will skip and focus on other aspects, except few touch points on SLs.

Decide when not to trade:


•To make a decision on a journey (to Profit), you should know till what point you need to go per month (I found a monthly target is better than a daily or weekly) – The Z factor, without this no planning can be done

•How much you scored till a weekly basis compared to your monthly milestone, to decide whether you need an aggressive or defensive entry strategy next week – essentially meaning taking high-quality trade signal (defensive) or High-Risk trade signal (Offensive)

•Market opens everyday (working days), but that does not necessarily mean that you need to take fresh entry everyday


Identifying failure points

•When you enter a trade, don’t decide fixed pip SL - that you will keep your SL at 50 pips or 30 pips below entry. Unless you are scalping, fixed pips SL is not required. Most of the times you can find a point where a trade will fail, with a nominal cost, than a traditional SL. That is the failure point, ensure you stick to that.

•MAE (Maximum Adverse Excursion) is beautiful concept of optimising SL by data-mining on a historical win-fail data if you maintain a journal properly

•Avoid a failure point on a chart as your SL area which looks very obvious – like a long wick of rejection before the new uptrend. Most of the SLs of retailers are there – it is nothing but a liquidity pool for the big sharks lurking in the deep sea


Do anything which stops you from going Emotional Overboard


•Killing a trader by overpowering / overshooting his emotional threshold – is the primary weapon of market maker, don’t be a victim of this. Do whatever it takes to get away from its line of sight:

oRight position size, which you can hold on to

oNever try to make up from a sequential loss (say 3 in a row), with X size, by taking the fourth trade with 3X or 6X size – that is suicide. The right way is , win with same size, more frequently with better RR

oDon’t listen to News channels or Twitter feeds when you are having open position – keep faith on yourself. Even if you lose in that process, it is fine. Don’t let other tell you that you are going wrong

oBe a good loser - Allowing a losing day to end peacefully, don’t fight the market. Keep your focus glued to the monthly goal, not on daily. Losing a day or 2 is fine


Don’t be a Victim of Mental Inertia

We all know what the inertia is – a moving body prefers to maintain the same speed and line till disturbed by an external force, and vis-à-vis for a static body.
When you cycle (at some-point we all did), you don’t keep on paddling as long as momentum persist, you simply steer and apply break if requires.

Our brain also works like this for the decision making - example (you enter a password for your mail a/c, it fails. You will try 2 more times with same password failure (metal inertia), then when the threshold of your Psy system is crossed, you check what's going wrong and may find caps lock is on).

which is a big fallacy for trading.

This is the secondary weapon of the market marker.
Some example:
•Market was negative and reversing for good, signals also showing sign of it. How retail fishes behave

oOh its up sell – SL Hit
oOk one more time – blown once more , 2 days silence
oMarket entered uptrend and does a little pullback – yeah baby, this is it – short once more – blown to bits

Don’t feel victimised. Our trading habits cannot be totally insulated from our hard-mentality, regardless how much ever we may read about this. So learn to live with it.

This is not a mistake in being wrong (taking a bad entry) – but it is definitely a blunder in staying wrong (retaining this loss making position).

Mental inertia is not good for your defence in trade

It does not matter if you have hit a 100 Pip(er) or 1000 Pip(er). That was your offence. What you did for the rest of the trades on that month will decide - your money grew at the month-end or not - end of story !!
 
Last edited:

Tuna

Listen and act, don't ask it, it doesn't oblige
You know what , if anyone is reading this thread end to end (my psyops and myth busters) religiously - its me. I know this knowledge is there on somewhat superficial level - by repeatedly going through these I am hammering the nail down to the core - just like revising before exam . It makes me feel a lot better during the trades.


Sent from my iPhone using Tapatalk
 

Subhadip

Well-Known Member
Trading Psy Ops # The Defence is more important than Offence

In a game of chess or football or even in a war between 2 nations, offence hogs the limelight. When we watch a match of cricket, we are more focused on watching the player hitting a 6 or 4 / or our bowlers taking wickets. But do we really cherish when a Batsman blocks a Yorker or leaves a good off-swinger. I guess the answer is no.

Because we are result driven and want winning events more than the one which let us stay alive. This is one of the AAM AADMI (apolitical) habits which has been the target of the market maker. So we need to focus on the defence area of trading. One is very simple and well known – STOP Loss or TSLs, this I will skip and focus on other aspects, except few touch points on SLs.

Decide when not to trade:


•To make a decision on a journey (to Profit), you should know till what point you need to go per month (I found a monthly target is better than a daily or weekly) – The Z factor, without this no planning can be done

•How much you scored till a weekly basis compared to your monthly milestone, to decide whether you need an aggressive or defensive entry strategy next week – essentially meaning taking high-quality trade signal (defensive) or High-Risk trade signal (Offensive)

•Market opens everyday (working days), but that does not necessarily mean that you need to take fresh entry everyday


Identifying failure points

•When you enter a trade, don’t decide fixed pip SL - that you will keep your SL at 50 pips or 30 pips below entry. Unless you are scalping, fixed pips SL is not required. Most of the times you can find a point where a trade will fail, with a nominal cost, than a traditional SL. That is the failure point, ensure you stick to that.

•MAE (Maximum Adverse Excursion) is beautiful concept of optimising SL by data-mining on a historical win-fail data if you maintain a journal properly

•Avoid a failure point on a chart as your SL area which looks very obvious – like a long wick of rejection before the new uptrend. Most of the SLs of retailers are there – it is nothing but a liquidity pool for the big sharks lurking in the deep sea


Do anything which stops you from going Emotional Overboard


•Killing a trader by overpowering / overshooting his emotional threshold – is the primary weapon of market maker, don’t be a victim of this. Do whatever it takes to get away from its line of sight:

oRight position size, which you can hold on to

oNever try to make up from a sequential loss (say 3 in a row), with X size, by taking the fourth trade with 3X or 6X size – that is suicide. The right way is , win with same size, more frequently with better RR

oDon’t listen to News channels or Twitter feeds when you are having open position – keep faith on yourself. Even if you lose in that process, it is fine. Don’t let other tell you that you are going wrong

oBe a good loser - Allowing a losing day to end peacefully, don’t fight the market. Keep your focus glued to the monthly goal, not on daily. Losing a day or 2 is fine


Don’t be a Victim of Mental Inertia

We all know what the inertia is – a moving body prefers to maintain the same speed and line till disturbed by an external force, and vis-à-vis for a static body.
When you cycle (at some-point we all did), you don’t keep on paddling as long as momentum persist, you simply steer and apply break if requires.

Our brain also works like this for the decision making - example (you enter a password for your mail a/c, it fails. You will try 2 more times with same password failure (metal inertia), then when the threshold of your Psy system is crossed, you check what's going wrong and may find caps lock is on).

which is a big fallacy for trading.

This is the secondary weapon of the market marker.
Some example:
•Market was negative and reversing for good, signals also showing sign of it. How retail fishes behave

oOh its up sell – SL Hit
oOk one more time – blown once more , 2 days silence
oMarket entered uptrend and does a little pullback – yeah baby, this is it – short once more – blown to bits

Don’t feel victimised. Our trading habits cannot be totally insulated from our hard-mentality, regardless how much ever we may read about this. So learn to live with it.

This is not a mistake in being wrong (taking a bad entry) – but it is definitely a blunder in staying wrong (retaining this loss making position).

Mental inertia is not good for your defence in trade

It does not matter if you have hit a 100 Pip(er) or 1000 Pip(er). That was your offence. What you did for the rest of the trades on that month will decide - your money grew at the month-end or not - end of story !!
Nice.....:thumb::clap::clapping:
 
Hi

The exit condition is itself very tight (Mid point of previous day candle) so have not used any other fixed points stop . . .

For profit stop had tested with fixed points stop, but here again
noticed that when the exit conditions is not triggered it better to let it run
in few cases the gains run beyond 500 points, not sure one can hold till such time . . . :D

So we can say that profit stop should be placed around 450-500 points

As the data set is very small (20 trades) have checked the setup/trigger manually
with some aid from code like plotting the midpoint of previous day on the chart

Code:
//===========================================================
_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorDefault ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() ); 
_SECTION_END();


_SECTION_BEGIN("FOOLS SYSTEM");
e1 = EMA(C,20);	
e2 = EMA(C,50);
M1 = Ref((H+L)/2,-1);

Plot(e1,"",colorYellow,styleNoRescale);
Plot(e2,"",colorWhite,styleNoRescale|styleThick);
Plot(M1,"",colorLightGrey,styleStaircase);

ColorUP = IIf(e1>e2,colorWhite,colorBlack);
ColorDN = IIf(e1<e2,colorWhite,colorBlack);
PlotShapes(Cross(C,e1)*shapeUpArrow,ColorUP,0,L);
PlotShapes(Cross(e1,C)*shapeDownArrow,ColorDN,0,H);
PlotShapes((C > e2 AND L < e2)*shapeUpArrow,ColorUP,0,L);
PlotShapes((C < e2 AND H > e2)*shapeDownArrow,ColorDN,0,H);


Plot(10,"",IIf(e1>e2,colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750,0,-5,3);
Plot(20,"",IIf(C>e1, colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750,0,-5,3);
Plot(30,"",IIf(C>e2, colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750,0,-5,3);
Plot(40,"",IIf(C>M1, colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750,0,-5,3);
_SECTION_END();
//===========================================================

Thanks

Happy :)
Happyji,

I am getting the following error in the AFL
Ln:26, Col:80: Error 16.Too many arguments
Ln:27, Col:80: Error 16.Too many arguments
Ln:28, Col:80: Error 16.Too many arguments
Ln:29, Col:80: Error 16.Too many arguments

Please help.

Thanks a lot in advance,

Abhinay
 
Remove the extra arguments (last 2) in every line you are getting this error

i.e. delete the ,-5,3

Happy :)

EDIT:
or try replacing with this
Code:
PlotOHLC( 5,10, 5, 5,"",IIf(e1>e2,colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750);
PlotOHLC(15,20,15,15,"",IIf(C>e1, colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750);
PlotOHLC(25,30,25,25,"",IIf(C>e2, colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750);
PlotOHLC(35,40,35,35,"",IIf(C>M1, colorBlue,colorRed),styleOwnScale|styleNoLabel,0,750);
 
Last edited:

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