What systems actually work?

[fairwind]

What systems actually work?

Those that we figure out for ourselves. How do we figure it out for ourself? By reading and studying those idea's that generous folk put on these pages, then use/reject the idea's that make sense/nonsense to us.

Without all those 'systems' that are offered, this forum would not be as good as it is. These pages and the systems offered are what this forum is all about. Bring on the systems I say!! The input from readers of systems is how systems develop and improve. It does however require lots of reading and thinking about what it is that we are looking at.

That just about covers it I think.

[pipscooper]

I think most who post systems here are living in a fantasy land:

http://www.moneytec.com/forums/showt...ght=pipscooper

Why don't the systems here backtest well? Because the systems posted here are almost universally losing systems. Who in their right mind would post a winning system here for free? You can't apply money management to a losing system and turn it into a winning system. If you are applying discretion to a losing system and making profits, kudos but you would do better to find a winning system and apply discretion to that. Many here don't backtest their systems or ideas (even self proclaimed expert system sellers). Many of those who do backtest use buggy software that makes the results seem rosier than reality and so they chase their tails or lose money trading a flawed system.

To have a profitable system takes work to develop, time and effort to test using sound assumptions, an understanding of the basic market forces and of an underlying principle that can be exploited.

[Jetheat]

If you look at a system carefully, you'll find that the author doesn't always follow the system to the exact rules. You'll find a bit of discretion here and there.

I reckon discretion is unavoidable. You just can't follow a mechanical system blindly. If you do, you may end up with a few more losses than you want.

Using Discretion with a Mechanical system goes hand-in-hand.
Of course, you need to figure out when and where and how to use that discretion, but that all boils down to the amount of research and analysis you do before you place that critical trade.

JH

[realticktrader]

Hi guy,
It is critical that you have to monitor the system performance for at least a few weeks before entering a trade with the system...The bottom line is, it has to help you make profit no matter how bad good simple or sophisticate it looks..
You guy can take a sample look at one of such system that i have developed..http://66.199.246.146/forexunited.htm
You can use it everyday to monitor its performance to determine if it is a good or no good system,..go here to register to begin testing it ..http://forexunited.sytes.net/registerlogin.asp ..

[mcintyd1]

Originally Posted by pipscooper

... Who in their right mind would post a winning system here for free? ...

We can always hope that ego will get the better of someone before he/she realizes how valuable it is to sell a winning system.

[4xfool]

This has been working. As I have posted on the trading journal, I have had 3 major metdowns in 3 weeks using this strategy. Overall, the balance goes up so thats good. But this seems to work well.

[happytree]

Originally Posted by 4xfool

This has been working. As I have posted on the trading journal, I have had 3 major metdowns in 3 weeks using this strategy. Overall, the balance goes up so thats good. But this seems to work well.

Wow that was helpful. The original thread didn't ask who has a system that works. It was asking for working systems. You shared nothing of your system. Once again you are trying to prove your greatness by showing demo results.

[Maji]

This is my take on what systems work in forex. I am only concerned with mechanical systems, so my reply will reflect that. There are many successful discretionary traders out there, but I am not comfortable trading discretionary methods and so won't go there. The two strategies mentioned below is best used as complimentary ones to smoothen out the equity curve.

1. Breakout Systems based on trend trading strategies - pivot breakouts, hi-lo breakouts etc. These systems have long periods of drawdowns, and one has to be adequately capitalized to withstand that. SIBKIS is a strategy that falls under this category.

2. Cost Averaging Systems based on Counter Trend Strategies - Most market makers trade this way. The stop losses are wide and the targets are small. This needs a cast iron stomach and an extra deep pocket. There is a method sold on Ebay and mentioned by Jasperforex that is a variation of this method.

A combination of the two methods is a happy medium in my mind. It won't make you a millionaire overnite, but should work out good in the long term. Anyway, proper risk management and position sizing is the key to success in my mind.

Hope this was of help.
Maji