QUOTE (jas0501)
QUOTE (intothetrade) ....
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this is also why i suggest backtesting doesnt work...
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what happens is you get wrapped up in a trade psychologically.. a lot of people come up with backtests that look great - win more than lose and profits are bigger than losses. but then you actually execute the trade in real life and there are a ton of outside factors which cause people to act out in the wrong way at the wrong time.
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That statement is equivalent to saying GPS Navigation systems don't work.
If you don't follow the directions provided and think you know a shortcut well of course you will get lost.
The same holds true for backtesting. A solid strategy, (what tht is is open to debate, granted) derived and confirmed via backtesting is only good if you trade the strategy that was backtested. Instead of claiming it is backtesting not working, you should be saying that the lack of discipline required to effectively trade a system derived by backtesting, or any system for that matter is at fault.
It is lack of discipline not the failue of backtesting the contributes to lack of success.
It is
Plan the Trade --- Trade the Plan
not
Plan the trade --- adjust accordingly, based on whatever...
Just an observer trying to learn a thing or two… Good morning all, I'm a new guy to the forum and have been reading posts on and off for just a few weeks. Being a financial advisor who is decent at long term planning / portfolio management stuff but absolutely embarrassingly horrible when it comes to shorter term trading and technical analysis, I have really enjoyed what some have to say and have already learned a few things.
My question is, why do some choose to call out and pick on some of the others? Some of you seem extremely bright, have obviously earned your respective stripes, and are good enough to spend enormous amounts of time giving OTHER PEOPLE free and seemingly good advise, I don’t get the one upmanship stuff.
For those who have been and seem to continue being generous with your time and thoughts, thank you, for those of you that feel the need to enlarge your ego at someone else’s expense, please can it. Some of us would prefer to learn a few things with the hope of giving a bit back sometime in the future.
Regards,
MR
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