the SIMPLE thing that i m try to suggest in this thread is that :
simple systems like buying above 8 days ema and selling below it, OR buying above highest high of eight 15 min bar and selling below lowest low of eight 15 min bar in my other thread, can be as ultimate a system.
i m outright telling that i have not played the system.
softwares r to give us an advantage in comparing different indicators , SLs, profit booking points.
suppose if i wud have come out of blue and started telling that playing over 8 dema gives 'jabardast' result, u wud have asked have u backtested, now when i have backtested and telling u, u r telling backtesting and real life trading r different things,
even a fool knows that back tested result and real life trading r different things,
so where to start from, from a back tested result or from any one just telling good or bad about a system.
when i infinitely tested for simplest things like emas, highest high, lowest low triggers, SLs and profit booking points for diff time periods etc, these combinations were the best, others were slightly profitable and most gave negative returns.
margin and compounding r magical things.
both of the systems if played without the margin and without compounding effect i.e., not putting every thing back into new positions still earns 45- 50 % return in the same period ( think of a bank giving compounded interest of same magnitude compounded every few days - how much can ur money grow.
with margin trades without compounding will comfortably earn 400 % in the same period
and the impractical and impossible way of playing, with margin and with compounding will give > 2100 % growth.
these r all computer generated results and not executing properly will land us into losses, sometimes to unbelievable proportions.
believe me i ve made losses with paid well documented proved trading systems.
it cannot be said that whole world sud play these systems, and even if they all play on the same systems, because humans will be playing them they will differ in execution for differing conditions in which they r
all systems have drawdowns, means we have to take losses to have profits, till losses r being compensated and the method gives better profits over the losses.
with the impractical and impossible way of playing, such huge positions r being taken because we r not taking money out of the system, whole money is being employed, and not only the profits are being compounded,when whole money is being employed, we never know whether the next trade will be a gainer or loser, thus losses r also being compounded. losses even compounded are not only compensted but profits r being generated over that. pl. try to understand what i m telling.
all i have to say is if we cant become as mechanical as possible as a computer and even if we don't put all the money back into the system, not only because its impractical, but also because we dont wish to, we will still profit 400%, for margin trades .
but now some people r trying to confuse others that don't play the method just because they r telling (without even understanding the method, let go doing any studies or testing)
where am i telling anyone to put all ur hard earned money into something which they don't understand inside out.
some people r reacting to me like as if i have done a crime in doing backtesting and publishing the best that i ve found, AS IF I HAVE SNATCHED A HIGH SEAT ON WHICH THEY R SITTING.
just telling bad about a thing, and not having any idea about how to improvise upon the bad is, IMO, equally BAD.
my purpose is to create a belief system in ourselves that simplest of indicator (if permitted by our psycho), followed mechanically, having powers of margin and compounding can bring astounding results.
since i joined TJ in 2007 i had nothing special to tell, i ve silently learnt a lot from members, when not even thanked them enough, why wud i ve shared this system here in this forum , this is just to pay back to the community, and learn something more in return.
my motive is to tell every one with an open mind, which listens to even simpleton sounds, that for simple people who dont have enough time, there is no need to go mad after complex methodologies, BE SIMPLE, FOLLOW SIMPLE RULES, SIMPLY TAKE LOSSES, AND HAVE MAGICAL GAINS.
