Brainstorming on trading topics

[siddhant4u]

I second that. Not many of us know what's trade setup/system. Many of us are shooting arrows in dark. Some gets hit others are miss.

 

[Self-employedTrader]

The words that I am about to put down are my personal experience from trading for more than 20 yeras. By trading I mean Intraday trading, not buy and hold. Please dont take offence to what I am about to say.

You cant learn to trade by reading books.
I have read almost 25 books, many of them multiple times. They cant prepare you for trading. What prepares you for trading, is trading itself.
Get an account with a broker, who does not charge too much per trade, and start trading in small qty like 2 or 5 shares. Take positions multiple times a day, Win or loose say 25 rs per day. Try different scrips, try to get feel of the market.Do this for at least 3 months.
NOW,
Sit down with a pen, pencil and lots of paper. Write down what you have observed. How does the particular scrip move. How does it react around certain levels. And a 100 moe things.
Fill pages, and if you cant write 50 full A4 pages, you have learnt notthing

After this, try tp create a trading system based on what you have learnt. Create Rules. Then trade those rules with 5 shares. For 3 months.
In these 3 months, you will learn a hell of a lot more. A lot of rules wil change.
Then start trading the changed rules with maybe 10 shares. Repeat the above process as many times as required.

Even after all this you will fel psychological issues. Like today, I mised a short on the Nifty as it was already down 125 points and I though its a futile attempt to short here. And the markets humbled me

You already said what is a trading system and how to make one.... Guess no one has taken it seriously, even me... Sharing...

 

[sumosanammain]

I think the best way to kick start an initiative is to ask traders here to put up systems, or setups that they have traded, and made losses in. We can start by learning what NOT to do first. Lets take baby steps, and discuss what did NOT work for us.

 

[sanju005ind]

I think the best way to kick start an initiative is to ask traders here to put up systems, or setups that they have traded, and made losses in. We can start by learning what NOT to do first. Lets take baby steps, and discuss what did NOT work for us.

Sure from tomorrow will do.

 

[siddhant4u]

I think the best way to kick start an initiative is to ask traders here to put up systems, or setups that they have traded, and made losses in. We can start by learning what NOT to do first. Lets take baby steps, and discuss what did NOT work for us.

But everyone says trading setup working for one, may not work for another? opposite may be true as well.

Any both case it would be beneficial to all.

 

[sumosanammain]

But everyone says trading setup working for one, may not work for another? opposite may be true as well.

Any both case it would be beneficial to all.

If a Trading setup works, it works for everyone. Its the trader who is not working the setup properly.

 

[Happy_Singh]

Can start with
Three Ducks in a Row or a very simple system discussed on TJ 315 System

For MM/scaling rules can refer to
Richard Dennis's Turtle System has simple entry rules and very solid MM rules


.

 

[sumosanammain]

Maybe I should make it clear, that I am not here to teach a system to people... I think this is being assumed, asking me to put up complete systems with rules and Money Management for it.
I am here for discussions about System Development, not for providing complete systems here. Please forgive me, if somehow I have confused people here about my intentions.

 

[sumosanammain]

Sumo sir what are the key constituents of a system without which u won't call it a system

For an intraday system, which trades upto 3 to 5 times a day, a minimum analysis of a minimum 3000 to 5000 trades, as it would include 4 to 5 years of data, which would have covered all types of markets, sideways, trending, very volatile, etc
An analysis of the MAE and MFE, with binning of both the MAE and MFE
A running drawdown figure
A sample of at least 100 bunch of trades, starting point picked randomly, and totalled for the next 20 and next 50 trades, and that max dd, and average dd of thes bunch of trades
Many more such things

 

[Self-employedTrader]

To tell you the truth, sir, I never used a definite system in my one and a half year old trading journey. I used to note my rights and wrongs, how well a strategy worked and reason for it. Frankly I never even thought to back test l, like you said, 3000-5000 historical events.. only recently i started thinking about systematic trading after i blown my account, trying to do random counter trend scalping in stock futures... No position sizing, r to r, nothing. So i stopped and withdrew rest of the money. But I'm passionate about this...the feeling of being right on my analysis, that's the sugar on cake for me...

I don't want to be a shooting star, but stars like you, ST da and other successful investors..

Edit: My ledger is still dark red, so not a successful trader yet...