Interesting discussion regarding system trading with one of my readers


  1. vishal bheda says:

    hi!! Sir I have been reading alot about you. yiu are my idol, I am myself a system trader. I trade swing/positional for 15 to 20 days to sometimes 2 months. I am in a process in making a short term trading system for period of 4 to 5 years where I can slightly trade with more leverage keep drawdowns lower. I read you quote that short term trading is only cutting losses…..may you pls tell me why did you feel so?

  2. trendroom says:

    when dealing with shorter time frames in system will face a lot of noise which is inevitable …the shorter time frames goes the noise increases proportionally. Anyway you can still have have profitable system even on shorter time frame …i also have such ones but one of the problems with short term trading are commissions as number of trades increase dramatically …make sure that your commissions are as low as possible in this case.
    Big money are made on bigger time frames but u need to cope with bigger drawdowns and bigger stops.

    vishal bheda says:

    Thanks alot for replying, even I had the same thoughts in mind but was confused now my thoughts are clear and I shall stick with my the system with which I am comfartable. One more question if u dnt mind Sir, I know that win loss ratio is always low in trend following systems although on a maximum level what can a person level up the strike rate of a trend following system.

    • trendroom says:

      hi very good question … everything is in optimization …try to increase profit factor of your system … you are right that win/loss ratio in trendfolling is low thats the nature of markets …they trend maybe 20% of the time ..but u know already that we SYSTEM TRADERS are for these 20% (ONE TREND PAYS FOR ALL ) :)

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3 Responses to Interesting discussion regarding system trading with one of my readers

  1. Vishal Bheda says:

    Sir,
    I hope everything is fine at your end…I am continuing with my own old system with which I am comfortable to trade. Your advise is helping me alot. This time I have a small question sir. Would you advice anyone to keep risk per trade constant or leverage constant and why, if you know what rate on the particular index is your max stoploss. Shall wait for your reply. 🙂

  2. trendroom says:

    regarding leverage yes i would stick to a constant leverage ..increasing risk(leverage) u risk to riun your account … decreasing risk u risk to underperform … regarding stoploss it all depends how u manged the consecutive losses which u know are part of the game i stick to a constant rate of stoplosses for every system but when required u can change the rate is optimization requires this… u have ready to accept that marketchange itself and u have to follow it ..hope it helps

  3. Vishal Bheda says:

    Sir, how ru…we spoke before 4 months…u advised me for optimization I followed it. Although I go found that good trading systems have good performance in Avg profit/ loss and strike rate. But total number of points earned are less in comparison to an average system. obviously that can be taken care of with small hike in leverage. But do mostly all good systems with better strike rate have low earning in terms of points and sometimes they a miss a trade too ( sometimes not always)
    Pls guide me sir. 🙂

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