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Dear Paul and Realtraders,
The post by Paul is the best I have seen on this subject to date.The only things I would add are:
1.Discipline is made easier when you know you have capitalized your system properly so that even its worst drawdown will keep you in the game.
2.Discipline is made even easier when you really know your system and its quirks.
3.Discipline is the easiest when you are playing with the "house's" money.
I am a neurotic, consistent and happy system player.Of the 8 systems I have used only 2 failed mainly due to 1,2and 3.Looking back I failed the systems.
John
------------------ Reply Separator --------------------
Originally From: Paul Cote <cote@xxxxxxxx>
Subject: SYSTEMS/Discipline
Date: 05/02/98 08:22pm
A system is what is used to assure discipline in the face of random
reinforcement. You don't get the food every time, and sometimes maybe
not even most of the time, therefore you need a system so that you can
repeat what works on average over a long time.
What do you think of taking a system trade and getting your teeth kicked
in? What would the chicken think when the light comes on he gets his
teeth kicked in?
A system helps you to repeat actions when you are getting killed. It
also frees your mind. A really good article on this is in a little book
by Larry Williams from Windsor Books. He says the system is your God.
You don't know what to do, so you just take the systems trades.
If you don't follow the systems rules, you may not get the results the
system seems to promise. If you try to beat your system, the market may
beat you. To follow a system is a great relief for the trader. It is
the holy grail of repeating actions that in the past have brought
success over the long run.
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