Execution power!!! Many brothers don't understand why simpler systems have more advantages?
Because execution power is strong.
Execution power is the age-old problem for traders. Friends often send me a chart asking whether they should enter at this position. Looking at the various trend lines, support and resistance, as well as moving averages and MACD, often from multiple timeframes, I also feel dizzy.
We can think like this: when you are about to attack on the battlefield, and everyone around you gives different opinions, the trend line says wait, the moving average says it’s time, the resistance says hurry up, it's broken, and the MACD says I haven't crossed yet, with all the noise, you become anxious and confused.
What if it’s a simple trading system? Standardized, no gray areas in operation, the moving average has broken, just wait for the trend line to break and then enter, clear and straightforward.
At this point, your execution power will greatly improve because you no longer need to ponder and think a lot; you just need to execute, making decision-making much easier.
Simple trading systems are also easier to review and optimize.
We need to realize that a trading system contains many variables, including several indicators, entry conditions, stop-loss and take-profit settings, as well as money management, which has a lot of details that need to be reviewed and tested one by one to see the overall effect.
If your trading system is very complex, reviewing it can feel like a nightmare, requiring a long time and a lot of patience to barely stick with it.
The scariest part is if after reviewing, suddenly there's a parameter that seems off, you have to start over, which feels no different than the sky falling down.
At this time, the advantages of a simple trading system become evident, as the review process is simple, requiring fewer modifications, allowing us to conduct backtesting at a faster pace, and the progression to live trading will also be quicker, not testing patience as much.
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