If you focus on a small number of specific trades, you have already curve-fitted your system. There is no one correct way to discern your own beliefs about markets, but you can try this: - Come up with a hypothesis: It can be something simple like: ...

Quant basket trader? I need your help!

Hello PipMeUp, Both your statements are correct. The definition of a trend is always subjective and yet a trading system needs to be objective in defining a trend, identifying a potential start of said trend and defining a point where, if reached, ...

Quant basket trader? I need your help!

Monte carlo simulation usually refers to randomizing the sequence of trades. It is not limited to this definition though.

monte carlo simulation

Hi Koneko, That term does not refer to a system/method. I think it refers to intentionally introducing randomness into historical backtesting as a way of stress-testing a system. Personally, I do not believe in using statistical tools like this as a ...

monte carlo simulation

Depends on your system or methodology. Looking at that daily chart, I can think of a few trade ideas: - Wait for the fast MA to cross under the slow MA, open a short position and exit when it crosses back - Place a short order at the red line and ...

Weekly Trend/Transition Flow

The organized set of parts that form a whole could be the trader's emotional composition and mood. A trade might go like this: 1. Wake up, feel good about self 2. Open trade because favorite currency pair looks like its moving 3. Lose money, stop ...

The Wanderings of Tashkent

All forms of trading take place on some kind of system. Even if the system is based on discretion or gut feeling.

The Wanderings of Tashkent

A great trader once said that the best way to overcome emotions in trading is to feel and experience them fully. If you stop resisting and allow yourself to experience the feelings that you do not wish to feel, they go from becoming your enemies to ...

How to overcome the fear in trading!

There are simple and obvious ways to trade or not trade those charts. There are just no simple and obvious ways to guarantee a win.

Weekly Trend/Transition Flow

This question is irrelevant. You trade in accordance with your system or method. If you get no signals, you take no trades.

How often do u trade?

Hi Matheszabi. The saying "cut your losses and let profits run" only makes sense within the framework of a standardized methodology or system. Don't take this the wrong way, but what you have described there sounds very arbitrary. A good system or ...

100/200 pip system

Firstly, lol. Secondly, nothing wrong with a lagging indicator.

Someone talk to me about trading

Thats pretty funny. Indicators are just formulas applied to price data, you make money depending on how you use them.

Someone talk to me about trading

The market is not always bullish / bearish. The market is just a market. Bulls and Bears are people with different opinions and perceptions. There is no inherent order to the market. Markets are nothing more than an aggregation of millions of buy ...

The Market's Illusions & The Human Brain

Its entirely a function of your strategy, time frame and beliefs. If you use a long term technical system this question is irrelevant.

Which days to avoid trading?

Why can't it be? Trading can be as easy or as diffcult as you make it.

Someone talk to me about trading

Now, ask yourself why you think that your perception of objective reality is relevant to trading well. What you hold to be objective may very well seem subjective to someone with a different set of beliefs. I shall leave you with this excerpt from ...

Someone talk to me about trading

First you must define what is a trend is to yourself. Different traders, depending on time frame, define a trend differently. I simply define a trend as the tendency for price to move one direction more than another.

Reliable method to know when a "trend" has started?

Profitable trading systems aren't hard to discover, discovering a profitable system that is compatible with the trader is the true challenge. Monroe Trout interviewed in New Market Wizards opined that he could give his system to 10 different people ...

Pound Trader Weekly Message

The mental process of assessing objectivity is also shaped by beliefs about the market. Beliefs are neither good nor bad. However, some beliefs are more useful when it comes to trading. I can listen to an Elliot Wave theorist explain with intricate ...

Someone talk to me about trading