Part 10 - Consistancy and time restraints

Consistency and time restraints

Due to the fact that both systems listed here are being traded and the fact that Im also reviewing 2 or 3 other system at this time this blog will not be updated for the next month.

This will reduce the pressure on me to keep the blog up to date and gives me a few more hours away from the PC.

If any one visits this blog wishes an update please email me.

paul.naylor5@btinternet.com



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Consistency

A word about consistency by this I mean the absolute necessity to take every signal and trade every day

Day consistency

Take 2 traders A and B both trading the same system….. this system

Trader A will trade 5 days a week trader B will trade 3 days a week.. The results for the week are as follows

2 losing days 3 winning days

Trader A has made a profit Trader B has made a loss as the 3 days he chose to trade he unfortunately captures the 2 losing days.

Signal consistency

Now break this down in signals trader A and B again

Trader A takes all signal and makes a profit trader B has a different mind set and does the following

Signal 1 wins

Signal 2 loses - he didn’t like that

Signal 3 loses – trader B decides to stopas the market ‘looks’ a bad market to trade

Signal 4 wins and this win makes several point – trader B kicks the cat and makes a descion to take the next signal

Signal 5 loses – trader B has now had 4 trades with only 1 win. - He decides to call it a day and quits, after all he is clever and limiting his losses

Signal 6 to 10 win and the day ends – he didn’t take them and stares at the screen in disbelief

Results

Trader A has had 10 signals with 7 winners a strike rate of 70% and makes a good profit

Trader B, same day same system took 4 signals with 1 winner and a strike rate of 25% and he loses miserably on the day.

If you decided to trade mechanically you must consol yourself to trade every day and take every signal.

Don’t try and kid yourself you know what a good market looks like..ok its true some period during the day can be rough but are you good enough to call it ?

I know Im not