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John,
May I ask are you a pure system trader? In other words taking only system
signals in your trades? I have no axe to grind regarding whether to system
trade or not. I personally trade with a plan not a true system. I’d just
like to know if anyone at all is a pure system trader out there. Reply
privately if you like.
Brent
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> From: John Cappello <jvc689@xxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: SYSTEMS/Discipline
> Date: Saturday, May 02, 1998 8:28 PM
>
> 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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