System Trades

Posted by Ralf on February 27th, 2015 — Posted in News

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This actually happens very often. If we trade a system with a low percentage of winning trades then, sooner or later, it is tempting to begin to miss some of the deals. Suppose we trade a system that gives only 30% of profitable trades. Starting to miss the deal, initially, we will be "rewarded" for our violations discipline. For some time we will benefit from the passage of losing trades, so long as we inevitably will not miss a very lucrative deal.

Usually, such a system soon, "released", because, conceding profitable trade, we once again back "zaprygivayem" in the system, and then stumble on the next series of losses. On the other hand, if our system has a high percentage of winning trades, we will not be tempted to try to outsmart the system. First of all, we understand that, if missed some kind of deal, it is likely to be profitable transaction. Thus, the favorable parameters of the system helps us maintain trading discipline at the proper urovne.Sistemy with a high percentage of winning trades require less diversification. A typical trend-tracking system requires a constant search for markets with a strong trend. Strong trends arising relatively rare and to be sure that we have just the right market at the right time, we must diversify our trade across multiple markets. We can not afford to lose at least one of these large trends. Diversifying as much as possible, we will very likely be able to catch the big trend, offset past losses, and get new revenue.

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