I have spoken many times about the uselessness of trading based on an automatic trading system. Every time I affirm this, there is always some opposing comment.

First of all, let me say that by "system" I mean the one you prepare or over-optimize through hundreds of backtests. The one that automatically tells you, thanks to certain parameters, where you should enter and exit.

It is normal for this to happen; everyone has their opinion, but I will still continue to position myself against those who still believe that trading, consistent profits, or high percentages of return reduce to a mere buy-sell system.

A reflection is enough to make you understand its uselessness. I know many will disagree because this way I take away the illusion they are currently immersed in: the search for the Holy Grail. And speaking of illusions, that is what an automatic trading system suggests, the illusion of achieving a 100% winning system someday.

It is nothing more than a necessary stage that every speculator goes through. However, half of traders get stuck in it for life. And even worse, there are those who buy such systems... Who would sell a system that supposedly "works"?

What can you expect from a system other than wasting time?

The only trading system I use refers to rules of conduct, but in terms of the technical aspect, I only focus on trading in real and practicing on the charts. It is practice or experience that you need, just that. Get it into your head once and for all.

With an automatic buy-sell trading system, the only thing you can aspire to is to achieve a certain profitability, just that. But you will only be able to aspire to the coveted 100% when you trade without a system.

It is an inconsistency, but it is so. Trading with an automatic trading system, the only thing you can aspire to is to obtain a percentage X.

Why, then, will you only be able to aspire to 100% trading without a system?

As an outside observer of the market, you have a privilege, a unique advantage over it: the power to say NO when opening a trade. The system does not have that privilege; you have to open when it tells you to, no matter what is happening. The system has no soul. It is true that many use it to avoid falling into the psychological traps of the market, and it may be true that you can keep the mental aspect of the market out, but you will never be a good trader that way. Medals are earned on the battlefield! Experience makes the difference.

On the other hand, trading based on your own decision, grounded in the extensive experience gained from trading day after day in real markets, will give you the gift of being able to open a trade when that powerful experience indicates so. When you trade this way, you are renouncing to operate with a single system to operate with all at once and thus cover the entirety of the market, a market that has life and laughs at any system bound by artificial parameters. You will never be able to confine a market to a system, just as you cannot put the sea in a bucket of water.

You will know, and this makes everything clearer, that trading systems, after "working well" for a time, stop doing so. You have read it a thousand times, that what worked in the past does not work in the present.

I always give the example of video games because it is general and well understood. What the hell rules do you have, what backtests do you conduct to win? It is the trial-and-error law, the old wives' tale, the experience you gain from practicing something for a long time. Forget about systems and start practicing, learn from your mistakes; losing always leads you to win as long as you don't give up.

I know you are not going to do it and that you will doubt it again... but that is no longer my concern.

#Estrategia trading