Poll on trading system types

what system you find to be most ideal and what kind of system are hard to find

  • A system which gives lots of entries in 1 month with a number of hits and misses

    Votes: 0 0.0%

  • Total voters
    21

lemondew

Well-Known Member
#1
what kind of system you find to be most ideal and what kind of system are hard to find. I have been personally very conservative and thought of trading low risk strategies with less but sure profit. The system still failed last series and hence put this poll. :)

Ps: i have tried the former and I am now looking at additional types to see how it fits.
 
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#2
what kind of system you find to be most ideal and what kind of system are hard to find. I have been personally very conservative and thought of trading low risk strategies with less but sure profit. The system still failed last series and hence put this poll. :)
Hmm, do you talk about a system or do you talk about an option strategy?

A trading system is and can be build around most option strategies, so the core of the system is the choose'd option strategy.
 
#4
This is what most traders want their system to do but you forgot to add it.:D

"A system which gives few entries with more hits and less misses but LARGE profits on each hit."
How do you define what a system is in his case?
 

lemondew

Well-Known Member
#6
Well I am talking about a system- set of rules
1) criteria for entry
2) criteria for exit.
3) Max expected drawdown
4) Expected profit %. Allocation of capital accordingly
5) Rules to increase/ decrease capital based on success/failure month after month
Be it any options, futures, equities.

I was always trying to devise a system which would fail very less and work month after month like an FD. Might as well look the other way expect to loose but covers all losses and gives much more when wins.


Hmm, do you talk about a system or do you talk about an option strategy?

A trading system is and can be build around most option strategies, so the core of the system is the choose'd option strategy.
 

lemondew

Well-Known Member
#7
Thanks but is it easy to find. I dont wish to spend my whole life trying to find one strategy like this. I might be also ok with something which doesnt work so well but gives me decent enough money by month end. And offcourse which I can back test and get ready in next few weeks.


This is what most traders want their system to do but you forgot to add it.:D

"A system which gives few entries with more hits and less misses but LARGE profits on each hit."
 
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#9
I have voted for choice No 4 ie "the other type " .Let me explain as under :Here I am talking about trading and not investing for long term.

1) I am not comfortable trading a system which gives very few hits and large no of failed trades. If a system gives 30 % successful trades and 70 % failure trades but successful trades give a reward to risk ratio of 2.5 to 3:1 or more is great but the question is how many traders can successfully trade such a system ? Getting hit 7 times out of 10 and then on 3 successful trades we wait and run our profits is great if one can handle it psychologically.

2) I am not comfortable with a system which gives larger hits and fewer failures but small profits on each successful trades. This is like scalping for small profits. The brokerage,taxes and other charges work against us.

I am comfortable with the mean between the above two types. I look for the following :

1) Sufficient number of trades, not too many, not too less. For a swing trade system I expect 2-8 trades in a month, for day trade system 2-3 trades a day.

2) Reward to risk expected in swing trade is 3:1 or more and in daytrades it is 2:1 or more ideally.

3) The minimum 50-55 % trades should be successful in both swing trades and daytrades.

4) System should be simple and clearly defined. No ambiguity, no indecision...trade may fail but to take a trade or not should never be a dilema.

Systems I trade dont satisfy all the above critaria, but I try to go as near as possible to the above critaria. There is nothing perfect, and we have to live with imperfections in real life...

Smart_trade
 
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amitrandive

Well-Known Member
#10
I have also voted for No 4.
For me a system should be very simple and effective.

Any good system giving a 50-50 hit can be used successfully by a good trader.
A system should be very simple with few rules and no space for indecision.It has to be so simple that even if you give it to a layman he should be able to use it with the same efficiency as we are.

Very less or no indicators.Ideally should differentiate from the low and high probability breakout trades , so that we can understand where to leverage and where not to.
 

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