Recently, I took time to reorganize several trading theories and validated them in real trading. After repeated verifications, I found that the system that suited me best was still the one I used earliest.
Previously, I was very focused on technical theories, having learned almost all the mainstream theories on the market, including Elliott Wave Theory, Dow Theory, Chande Theory, Order Flow, Price Action, Wyckoff, and others. Ultimately, in real trading, I mainly used tested Order Flow, combined with moving averages and Price Action.
As I delved deeper into learning, I gradually realized that different trading theories are actually discussing the same thing, just expressed in different ways. The benefit of learning more theories is that understanding and absorbing subsequent knowledge becomes easier.
When I first entered the market, I was fortunate to encounter positive trading concepts and read a lot about trading cognition and mindset management. Although this knowledge seemed useless, it helped me build a foundational thinking framework for trading, avoiding major mistakes. Even in the case of continuous losses, I could quickly adjust my mindset.
A trading system that can continuously profit is not complicated. As my teacher said, a good trading system is actually 'rough and simple'; the key lies in execution. However, many people are often unwilling to persist. I initially profited using this simple trading system, but when the market was not suitable, the system's effectiveness declined, and I began to try other systems, hoping to find alternatives that performed better.
At the same time, I am also influenced by some external voices, such as the admiration for ICT Order Flow. I used it for half a year and found it more suitable for Forex and stock indexes, while its adaptability in the crypto space was poor. The core of ICT Order Flow lies in time and bank settlement algorithms, which are absent in the crypto space. However, it is still useful in certain aspects, such as assisting in judging support and resistance areas and imbalance zones. These insights helped boost my confidence during subjective stop-loss situations, but overall data did not prove it superior to my first trading system.
Over the past year, I have tested multiple trading systems in real trading, including: a trading system based on Vegas theory; a trading system based on moving average theory; a trading system based on ICT Order Flow; a pure Price Action trading system; and other indicator systems.
In testing, I try to distinguish the logic of each system, but in practice, I still unconsciously combine other trading theories for comprehensive judgment. However, these tests have made it clearer which system is more suitable for me and have helped me recognize the strengths and weaknesses of each system in different market conditions.
My teacher has always emphasized that the simpler the trading system, the better; the more complex, the harder it is to profit. My system mainly focuses on trend pullbacks and breakouts, occasionally engaging in range trading, and I avoid trades I don't understand. This simple logic makes it easier for me to execute.
What truly hinders retail traders from becoming professional traders is not a lack of skills, but an unclear understanding of their own abilities, emotional control, risk management, and profit objectives.
