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Many of the standard indicators work well and many traders use them
successfully.
I think the main issue with designing your own system is so that it fits
your personality. Even if the commercial systems worked as advertised, they
may not suit you.
There is the "Babe Ruth" type of systems. They make a lot of money from a
small percentage of winners and usually have large drawdowns. I would not
trade that kind of system no matter how much money it made. I get anxious
after 3 losing trades and I don't like large drawdowns.
Breakout systems can be good, but the stops have to be uncomfortably large.
For myself, my systems have about 70%+ winners and very small drawdowns.
But seldom do I get a home run. Mostly just base hits and occasionally a
double.
So, the bottom line is that you have to find what works for you.
Regards,
Paul
-----Original Message-----
From: Tanoto Sau Ian [mailto:sitanoto@xxxxxxxxxxxxxx]
Sent: Thursday, January 24, 2002 6:41 PM
To: omega-list@xxxxxxxxxx
Subject: Designing your own system
Hi,
I am a newbie to TS and system designing. From what I've read and
gathered, it seems that the common and recurring advise that a lot is to
design your own system.
The confusion that I am having here is when they advise to design our
own system, does it mean taking some common available indicators and put
them together into a strategy, or does it mean that we should come up
with and design our own proprietary indicators and incorporate them into
our strategy and throw all the common ones out the window?
tks
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