In the trading circle, we often hear some lamentations: 'I still don't have my own trading system' or 'I have a very good trading system, but I can't control myself, I just can't adhere to my own discipline and consistently execute it.' The principal keeps wearing down, becoming less and less, and even when rare opportunities arise, I dare not enter the market.
In short, all misfortunes in trading seem to be attributed to 'not having one's own trading system' or 'not being able to stick to executing one's own trading system.' Correspondingly, finding an effective trading system and consistently executing it seems to solve all problems. Is it really that simple?
Here, I want to attribute system problems to the system and human problems to people; only with appropriate attribution can we solve problems effectively.
If it's a system problem, directly use Ming's trading system that has been validated through thousands of trades. If it's an execution problem, standardize and unify the entry and exit signals while forming operational habits through extensive training. Would you be unable to execute your habits? At that point, not executing your habits will feel uncomfortable.
Many people actually do not know what the result of their trading system will be after executing thousands of trades, what range of drawdown they will experience; they execute blindly, and after several consecutive losses, they begin to feel anxious, wanting to hold onto a trend but worrying about giving back profits.
This is actually a failure to see the overall picture of the trading system and a lack of understanding of what kind of trading system is worth executing.
If there is only one standard for a good trading system, it is that it can be replicated many times, meaning using specific rules that can be articulated, and still being profitable after thousands of trades while keeping drawdown very small.
Firstly, many people do not have a formal trading system, but they do have a substantive trading system.
These traders stubbornly adhere to their own trading systems; moreover, this trading system is not 'found' but is rooted in the trader's 'body' from the very beginning.
These traders who make mistakes all have their own trading systems. Although the traders themselves may not realize it, let alone express it clearly, this trading system must be endogenous; otherwise, it would be impossible to repeatedly 'replicate' results and steadily incur losses.
Because humans have animalistic tendencies, animals will strengthen or change their behavior patterns based on external feedback.
The biggest trap in trading is that the market sometimes rewards your mistakes, constantly tempting you to break your own trading rules. Making money after breaking the rules is often the most terrifying; after tasting the sweetness, it will strengthen the feedback loop, and you will continually try to break your own trading rules, leading you further down the wrong path, with the end result being a continually diminishing principal.
Some traders face issues where the trading system has gaps; the system itself is too broad, only summarizing some 'principled' guidance without specific operational signals, leading to significant ambiguity in execution. For instance, some traders may construct their trading systems merely by reasoning from experience and logic in their minds, thinking that a certain trading method is feasible.
However, this 'feasibility' only considers certain advantages of the methods without adequately addressing their drawbacks in unfavorable conditions and the clarity of execution signals. The more ambiguous the signals, the harder they are to execute, and if execution fails, the trading system becomes meaningless.
Therefore, a good trading system should not only be profitable after thousands of trades with well-controlled drawdowns, able to withstand long-term, large sample testing, but also have high signal clarity, clear and unique signals that are easy to execute, along with an unbreakable, tightly interlinked underlying logic that can withstand repeated scrutiny.
If you want to save a few years of exploration time and costs, you might as well go directly to Awen; this market is big enough to accommodate traders. I wish you smooth trading and hope you reach your goals soon.
I am Awen, having navigated the trading market for eight years; if you have any questions on your trading journey, feel free to consult Awen.