I developed my first mechanical system about three weeks ago. And this system of mine is about to go live this week on a real money account. Here are at least 5 reasons to justify my switchover from discretionary to mechanical trading:
#1 - Well-defined system behaviour
The system will be executing a predefined trading plan by following every trading rules which I design, covering every situation from entry to exit and position sizing.
#2 - Useful backtesting
No one will ever build a mechanical system that will thrive in every market conditions. Through 'honest' backtesting, you are able to learn more about the strength and weakness of your own trading system. In my opinion, it is important to know why and when your system fails. By doing so, you gain an edge in trading by understanding the market behaviour.
#3 - Consistent execution
No more missed trading opportunities. The system will be able to interpret market behavior accurately and to execute every trades without variation plus around the clock 24/5.
#4 - Forced discipline
No more overtrading. No more revenge trading. Traders will no longer risk too much on one particular trade setup. Traders would have realised that many perfect trade setups could still result in losing trades (from the results of backtesting).
#5 - Stress-free trading
No more emotions involved in trading - fear, greed, anger, pain, elation are unnecessary. Be confidence by trusting your own trading system. Reap more benefits and enjoy trading ever since.
#1 - Well-defined system behaviour
The system will be executing a predefined trading plan by following every trading rules which I design, covering every situation from entry to exit and position sizing.
#2 - Useful backtesting
No one will ever build a mechanical system that will thrive in every market conditions. Through 'honest' backtesting, you are able to learn more about the strength and weakness of your own trading system. In my opinion, it is important to know why and when your system fails. By doing so, you gain an edge in trading by understanding the market behaviour.
#3 - Consistent execution
No more missed trading opportunities. The system will be able to interpret market behavior accurately and to execute every trades without variation plus around the clock 24/5.
#4 - Forced discipline
No more overtrading. No more revenge trading. Traders will no longer risk too much on one particular trade setup. Traders would have realised that many perfect trade setups could still result in losing trades (from the results of backtesting).
#5 - Stress-free trading
No more emotions involved in trading - fear, greed, anger, pain, elation are unnecessary. Be confidence by trusting your own trading system. Reap more benefits and enjoy trading ever since.
No comments:
Post a Comment