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OK,
I really resisted getting caught up in
this...however,
in defense of the word "system", here goes...
I daytrade everyday with an emphasis in
the SP and ND, but I also trade
the currencies and the bond. I consider
myself a system trader. My system
consists of proprietary indicators I
developed using Easy LanguageŽ. Each
individual market I trade has its own set of
parameters.
When one or more of my indicators signal
the individual market
is going long or short, I apply a filter.
For instance, in the SP (the close of the
bar that gave me the signal plus or minus two
SP points) and enter
via a stop. Example: SP closes witha long
signal at 1362.40, I enter
a buy at 1364.40 (. My initial stoploss is
1362.40 ( 3 points)). When the
trade goes in my favor by a margin of 2+
points, I move my stop
to breakeven. My target is 3 points profit.
When there is slippage
(almost every trade) I use the original
values as my entry and exit, etc.
The same sort of strategy (with different
entry/exit strategies, of course)
applies to the other markets I follow.
Because the methodology works better than
8 out of
10 times, I follow it. Does that mean I trade
ahead of a
Fed report, or Greenspan testimony, or the
monthly
Philly Fed report? No, of course not. I
factor reports and Greenspan
testimonies into my system. I stand aside
until the indicators
show me the way AFTER the report or the
Greenspan bit.
Of course, unlike a blackbox, I
understand how the indicators
work. And, I have been trading this way for
many years as well
as having backtested the strategy four years
ago. Not on a TradeStation
system basis, but on how well my indicators
show profitable turning points,
coupled with my entry filters.That is
something I could never have done
without TradeStation, beginning with my 3.1
version.
The above represents my version of a
trading system. I have a
set of rules, a methodology I can believe in,
and a system to
implement it.
Find something that works...find its
faults, improve on them...
and trade it.
That's a system, folks, and it works.
Jim
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