How strictly do you follow your system/ strategy…….?

MoneyTec Forums General Trading Forum How strictly do you follow your system/ strategy…….?

This topic contains 20 replies, has 2 voices, and was last updated by  Patricia12 2 months, 2 weeks ago.

Viewing 15 posts - 1 through 15 (of 21 total)
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  • #626

    rocky

    Most of us use systems/strategies to trade forex, which is important. But some people don’t follow the rules of their systems strictly. They don’t close the trade when it hit stop loss and also take profit too early. This affect their risk : reward ratio and make them lose money. I believe in my system and follow it with discipline. I follow my SL and TP levels strictly. How strictly do you follow your system?

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    #627

    futuresandforex

    There are certain rules that are non negotiable for me, such as placing your stop, and never averaging down. How much to risk per trade. Those are certain rules I never break.

    Then there are other rules that you ban bend/modify depending on the market conditions. Things like take profits, or trailing stops. You can potentially modify them depending on how great the chart setup looks, or if the market is trending or ranging or about to breakout.

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    #628

    Nik
    Keymaster

    Yes, I agree…..Stoploss should be fixed before executing any trade. I also follow my trading plan very strictly. My SL point is always fixed. It’s always better to take the loss than to hope for the price to reverse in your direction. This way we can keep our losses under control.

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    #629

    Rich14304

    Members;

    As I support strategy; and the needs to set boundaries; in both EXPOSURE and in STOPS; I find myself questioning a CONDITION; in which you may provide a sense of clarity; for the membership; and for myself; by the exposure of your insight.

    While I could write for hours on the WHO-WHAT-WHERE-WHY of the topic; may I simply offer this; Do you feel the MARKET DYNAMICS maintain even FLOW; ebbs of waves; suitable for a single standing; a single strategy; for the perception of the NOW?

    Could this line of reasoning; the questioning thereof; be considered reasonable; in both approach and in FACT; if perhaps one could note there may be more than a signalized [recognition] of the NOW-dynamic that may include FORE-PLANNING; meaning due to shifting dynamics upon a time-line [TIMING]; having more than a single strategy; whereas that strategy would INCLUDE; albeit at times not necessarily needed for the position taken; a wider spectrum of strategy to meet the condition of a future event OUTSIDE of a HARD-STOP contained within a single [perceived] strategy development?

    Meaning; in so many words; and as an ACT of money-management; think outside of the BOX; as a Part A and a Part B; pre-planning for the un-expected move; whereas ones Directional Bias is still maintained; yet controlled by a wider STOP?

    Could it be reasonable to; as an example; note that TIMING the market is paramount; therefore if one were to enroll a smaller projection; as an AVERAGE; as a Part A; as the initial realization of the dynamic; and if perhaps the un-expected movement would exceed the tighter-realization; Part B; have already FORMED the ENTRY for another position; of course the attributes of the Directional Bias would have to be weighted as recognized; placing the HARD STOP according to the larger; Part B; of the two areas?

    In so many words; it may be possible to perceive this post; and a strategy development; as not placing all of one??????s eggs in a single basket and have; as an example; a 1/3 PART A; with notable conditions as being failed timing BUT NOT failed directional bias; and a HARD STOP; either programmed or mentally placed; under the 2/3 PART B; accepted as both FAILED TIMING AND FAILED DIRECTIONAL BIAS?

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    #630

    superfxtrader

    I have a simple strategy. I practiced it a lot and I believe in it. These are the things which makes me follow my strategy with discipline. I will suggest everybody to develop their own strategy and practice it till the time you have enough confidence with it. A perfect plan will make you money in forex.

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    #631

    Rich14304

    Superfxtrader and Readers;

    I agree with your advise; a strategy of one??????s own design; fully understood; followed in both practice [DEMO] and in LIVE markets permits the first step in confidence; leading to Profits.

    For the consideration; if perhaps one thought of trading to be similar as of sailing or of boating; whereas one floats their vessel; then sets sail; navigating from point A to point B and back again; after a period of time; the party; the Captain of the vessel; begins to understand the nature of the tides and the currents of the waters traveled; with rules in mind; to traverse the charted or navigable waters; and to save the vessel at all costs.

    Each trip; from Point A to B and back again; may be charted as the same; on paper or graph; meaning the trip is PLOTTED; however the reality of each trip is different; each trip is unique; as each trip is a series of exposures to varying conditions by nature [market dynamics] the ebbs and flows of the waters; the environmental exposures as weather; and the craft itself and all cargo within; keenly aware of all the functions need known to keep the vessel afloat; including the potential for shifting cargo; whereas the only control the Captain has; is of the vessel and all the contents within; and that control; is by the leadership experienced at the helm; by exposure to the elements and granted solely by TIME.

    The Captain is ALWAYS aware of the hazards of the traverse; even at the calmest of times; as he reflect upon past trips; extracting for consideration elements relative to his present course; verifying the crafts flight in the waters; while gauging and monitoring a multitude of factors as facets of helmsmen-ship; for the PRESENT by the conditions of the NOW; protecting his vessel and the cargo; and endlessly looking FORWARD; ahead of his vessel; for any signs of pending storms; with the destination for safe journey and port as safe harbor; sacred to his watch and always his stand.

    May one come to understand the nature of their keel.

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    #633

    marcusho

    Systems should be flexible but there is only one rule I don’t break is the 1% loss rule though.

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    #634

    Medran

    I don’t trust myself to trade strategies so I leave my robot to do that. My job is simply to program the robot.

    I actually take delight in not looking at the trades from one day to another confident that my robot is working diligently. He’s a very good robot and hasn’t ever let me down yet … but he has no emotion and that’s a good, good thing!

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    #635

    cjforex

    If your strategy has some statistical basis, which it should, then you should stick to your rules 100%. Otherwise you invalidate your testing.

    Personally I have a very difficult time with my impatience waiting for setups. So autotrading was the best thing for me.

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    #636

    chuna1985

    I will just say that i try my best to do so. We are all humans and we usually have the problem of following our strategy 100% due to the emotions in us that will make us to start adjusting our trades. I follow my strategy, but not all the time, i make mistakes to exit the trade in some cases.

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    #637

    murali603

    If we don’t follow the system for 1 or 2 times then that only make us bankrupted, I did some small mistakes which blown some previous account, so following system is essential for every trader.

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    #638

    mjomha

    I’ve done the samething not long ago I was sticking with my strategy but took a trade based on my strategy (news trading) and I took a trade based on news but not on numbers but on someone’s speech and paid dearly for my mistake but happy to have learned and I have learned from my mistakes and I am confident that its more accurate now.

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    #639

    chuna1985

    That is a fact, we must stick to our own strategies that are working for us. If we use another persons view, we might get losses even if that person is an expert trader. The best strategy we can understand and use well in forex trading is our own strategy.

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    #640

    murali603

    right if we avoid rules then it cause some good loss even for professional traders, thats why they strictly follow MM and take some less percentage of risk on each trade.

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    #641

    cjforex

    I would even say, have more than one strategy, keep records as you go, and keep track of what’s working… And what’s not.

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