Systematic Trading Part 1

Systematic trading Lesson 1

How to save yourself from paying tuition fees to market:

Over the years, we have been hearing friends around, strangers sitting at next table of Starbucks had claimed they are trading (shares, forex, derivatives), so the question from me to them is always “how do you trade?” I can assure you there are 99% of the respondent said they do follow a strategy; no matter is a strategy that they learned during some seminars with ($5000), strategy that they developed after reading few books (or webpage), strategy that they combine and sounded very complicated and “canggih”.

But hold on!Are you sure that they are following the strategy or they thought they had one and they think it might work? After a few questions and clarification on their “strategy”, most of the traders has confessed that they don’t know how they trade eventually, they are actually using their “feel”, a subjective view where gamblers using in casino (I myself has to plead guilty to that)

Subsequently, this is where the tuition fees came along, while people test the trading strategy in real market and paying the market “tuition fees” until they learn to make it profitable, or there are a portion of traders who have been losing money since years ago until today.

Why is that so hard to make money in the market while others seems mastering it easily, I would say the general response first: “Market always go against me”. Sounds familiar? While markets do not go against you, instead of that, you are going against the market my friend! I have seen experienced trader who can flip a coin to decide long or short and then develop strategy accordingly and he made a fortune out of it, amazing right?

So in my next sharing, I will give few examples on backtesting and hopefully those who would like to test their strategy, drop me an email to discuss further with details on what are you trading (shares, futures, options, forex), what strategy are your using (trend, counter trend, breakout, oscillator) at ryantongyc@gmail.com