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Conrad,
>
> I have found the same thing for me re systems. I find it very difficult
> to follow a system where I just receive the signals because I don't know
> WHY the stop is where it is , etc.
You have absolutely hit afew nails on the head:
1. If you are going to trade a system you have to
a. Understand the way it operates
b. Understand enough to test it out properly
c. Do enough work on it so that you can surrender your ego to it or realise
that it may not psychologically suit you.
c. Have the right amount of capital to trade it
d. Understand what it does in its pleasure pain cycle.
2. You need to be aligned with the system you use.
Well designed trading systems actually work in the long run - its just that
human nature is the same whether it is peaks in Markets or equity peaks in
Systems - most people will get in at the wrong time. Systems become most
popular when they are about to fall apart for a while. Systems cycle just
like markets
David Hunt
Sydney 612 9527 4690 Phone
612 9544 4683 Fax
http://homepages.tig.com.au/~adest
>
> I have come to the conclusion that unless I can purchase the system and
> understand it, as well as test it myself, I'm probably wasting my money
> subscribing to a signal service or a purchasing a black box system. If
> I can purchase the system, then I might have the confidence to trade it,
> or might learn something from the techniques used.
>
> Conrad Bowers
>
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