How to completely trust a trading system?

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A complete set of trading system, as a whole, consists of a series of components including its own trading ideas, trading theories, trading strategies, and risk management;

Back to this question, I should know that any theory has flaws, and there will be no absolute advantage, otherwise the market will not exist. This is an idea. Under this premise, although you know that your trading theory is flawed, you believe that the system you have established has a positive advantage in a long enough time span. If the problem is clear, you only need to understand how to transition yourself from believing to trusting.

The premise of trust is that you have to fully accept it. This system brings you advantages, but it will also bring negative factors, so the first step is to accept it. Only when you accept it from the bottom of your heart, will the foundation of trust be laid;

Secondly, this problem is different according to the people in different trading stages. I will create a quadrant below to find out the corresponding reasons for the problems and goals faced at different stages, and give my solution based on the actual situation;

If you don’t have your own trading system here, then you can’t talk about trust. Therefore, traders at this stage should focus on learning, keep reading, read a lot of books, listen to lectures, and learn from teachers if conditions permit. It has been said that learning is increasing, and Dao is losing day by day. If there is no benefit from knowledge, how can there be subsequent Dao. Therefore, at this stage, you must read a lot of books to prepare for the accumulation of knowledge in the future, and quantitative changes lead to qualitative changes;

It is obvious why most traders cannot trust a trading system. The first one may be someone else’s system. We just know it, but it is not highly recognized by the body and mind, so we need to practice more. Feeling shallow, absolutely knowing that this matter has to be done. If you practice more, you will naturally have physical signs and your own opinions;

The second situation is more advanced than the first one. At this time, signs are formed, and I believe in the superiority of this system, and I also have my own insights. Through addition, subtraction, and perfection, I make other people's models more suitable for my personality, but due to Lacking better profits, we are still in the stage of doubt. The system does not work when we believe it, and the system works particularly well when we don't believe it. In this case, we usually start with our own trading ideas, otherwise we will not be able to get out of this predicament. There are flaws in any theory, you can only be in trouble if you fully accept the risk, let yourself go, and clear your head

For all the above reasons, the final result is that the trading system is not perfect. If it is perfect and the body agrees, then there will be no distrust. Therefore, it is the same for those who understand it.

The overall lack of trust in the trading system is followed by the erroneous trading ideas. They believe that there is a completely superior trading theory and pursue the holy grail of trading. Then there will be problems at the root; followed by the chaotic trading theory. I hope to take into account all market conditions and all varieties. All-day market, control all varieties, then there will be theoretical confusion, and thinking will fall into entanglement; the third is the complexity of strategies and the diversity of structures. Different time periods have different structures. If there are too many structures, they will also fall into the priority Inconsistency; the last is the non-uniformity of risk. When the risk is large and the actual small, the position is small when making money, and the position is large when losing money, so the theoretical advantage cannot be achieved;

Summary: To achieve complete trust in your own trading system, you only need to understand that the so-called right way in the world is the vicissitudes of life. If you practice more and make more mistakes, you will naturally understand that the so-called your world is your own decision;

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Last updated: 09/06/2023 00:50

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