Friday, January 14, 2011
1/14/11.....flow of expectancy
I worked with a trader for a few months that really set the stage for me to get to the next level. Summary of what I learned.
Create a system that has a repeatable visual event. Stay in the flow of expectancy.
The repeatable aspect is simply this. If means that your system has the same triggers over and over and over. You must remove the variability of subjective trading. If you can't do that you don't stand a chance. You can't backtest something that isn't repeatable. Simple but that isn't all.
Once you do have a repeatable visual event that has been backtested to create a positive expectancy, you must not introduce any variability of NOT following the system. Just backtest the hell out of it and then follow it. If you don't then you are removing yourself from that flow of expectancy that you have created. This is where having more faith than fear comes in. I am hungry and need to eat so more on this later!
Trader X
Create a system that has a repeatable visual event. Stay in the flow of expectancy.
The repeatable aspect is simply this. If means that your system has the same triggers over and over and over. You must remove the variability of subjective trading. If you can't do that you don't stand a chance. You can't backtest something that isn't repeatable. Simple but that isn't all.
Once you do have a repeatable visual event that has been backtested to create a positive expectancy, you must not introduce any variability of NOT following the system. Just backtest the hell out of it and then follow it. If you don't then you are removing yourself from that flow of expectancy that you have created. This is where having more faith than fear comes in. I am hungry and need to eat so more on this later!
Trader X
