In the world of investing, sometimes the newcomers see so easy to get the profit converted in dollars in a short time. so they feel able to find their own way to gain unlimited profit without any loss.
But as a trader who will take a step forward in the future as your career, you should know, that there is no perfect trading strategy. You eventually have to lose, take a loss.
So before you spend time searching for holy grail without defeat in front of it, and start accepting the fact that you will incur losses. The perfect trading system is a system that makes money in the long run, not a money-making system with every trade.
Therefore, make the return index as your benchmark to measure whether your results are running well or not. if not profitable, this is one reason. and do not waste your time looking for a trading strategy that gives you a 100% winrate.
after your trading system proves to be profitable, but you feel not enough with the result, you may still force to fix it, you have to be very careful in this regard. Trading system is a very complicated construction and every time you change your parameters, winrate and reward: your risk ratio will also change. So does your drawdown.
Changes to the trading system should be done smoothly and slowly passing the correct steps, based on robust data. If you are constantly trying to perfect your performance, you will eventually end up on a reward risk reward that satisfies your desires. This means that your strategy will be too close to the past that leaves no room for future changes in market behavior. But as we all know, the market continues to breathe and continues to grow.
Installing systems that are too complicated with past data will cost a lot of money - a very real dilemma from every backtest. This is also the reason why you should always use spaces when backtesting - if you have 3 years of data, develop your system within 2 years, and test in the third year without any adjustments resulting in the third year.
You probably already have a profitable trading system in your mind, you just do not know it because after every trade loss you want to adjust it so that the losses you think can be avoided. However, this means changing your system and opening it up with other potential losses.
At one point you just have to accept that your trading system will experience a dubious transaction. Try to learn from the poker game, in a poker game, the players no one ever thinks of trying to win every game they play, the important end result.
"Most traders take a good system and destroy it by trying to make it the perfect system." - Robert Prechter
Accept that this is you, this is your trading system, with all its advantages and disadvantages. Learn to like it and accept that loss is part of it.
If you can not fulfill your dream of creating a "Magic Strike Rate Trading System", what is left? Excellence! It's your job to make sure your system is 100%. Even the slightest deviation is allowed. Make sure you always trade at the peak of your performance. Strive to achieve the best and make every trade count!
Any trade you take outside of your trading system is a humiliation to yourself, at the time and effort you make in your trade, and your self-esteem.
If you behave in self-respect and trust in your abilities and systems, it becomes easier and easier for you to follow your system.
If you experience a loss, try merevier, whether you execute all trades in a way that suits your trading system. and if so, does the market condition change, or does anything else happen? it's important to stay on track and follow your system, yet at the same time you understand why you're losing. If nothing can be done, good. This illustrates the process-oriented mindset of every professional trader.
Take a successive defeat with pride, protect your capital, run every trade with excellence and you will be able to weather the storm.
If you are bored with your trading, this is a good sign. Characteristics of excellent trade is monotonous. You have mastered your setup. You can now do that, to smooth the equity curve and diversify your revenue stream, develop another set up following the same process.
so in the end,Do not Change the System That Works Well, if there is a market change, optimize it smoothly and not extreme