Posted by: Babu Suresh | April 23, 2012

Is Every Trading System Unique???

A big hello to my fellow day traders.

Down here, its bright sunny day with summer temperature hovering around 33 degree celsius and the killer humidity about 65%.

Having completed my first trade from Jublfood long with a tenner and another tenner from JSWSteel short trade, I thought it would be wise to occupy myself writing this post on whether every trading system is unique. It took a while to complete my 2nd  trade but it was worth it.

UniqueNow, last night I had a highly constructive and thought provoking discussion with my friend and my stark critic from mumbai about my trading system. He started first attacking me with saying that I am not fully revealing everything about my HMA Bollinger Bands Day Trading System although it is quite interesting a set up. In fact he was the one who introduced HMA to me way back in 2008. He was absolutely right in his claiming that I have not revealed everything about the system. In due course of our discussion, he himself came out with an excellent answer why I could not explain everything about the system in my blog. There are certain instances in a system that cannot be explained for they have to be learned and understood while working with the system only then, if not 100% at least, 70 to 80% can be understood.

I don’t want to make any false claims by saying, once you have the same set up, you will achieve 100% success in all or every trade you make. It would be unwise, unethical and uncharacteristic of me. The way I see the charts, not only with respect to the HMA & Bollinger bands but other aspects as well, you may not see. Those other aspects are not that simple to write. At least I don’t know how to interpret them.

He said, its not entirely anything alone to do with the indicators in general, be it either EMA or SMA or Hull Moving Average or Bollinger Bands or RSI, or MACD and etc., that make the difference, its about what we want to see is what the chart will display. The critical issue is to know what we want to see from the charts. I am not the first one to say this there are many professional trainers, mentors, traders and technical analysts have often tried to emphasise this point. Therefore, the most essential aspect that must be kept in mind while developing a system or trying to follow others’ system is, whether that particular trading system helps our eyes catch what we want to see. Also, not only the trading system is unique but every trading session is unique. There can be similarities but they are not the same.

Further, price action will remain the same irrespective of the type of indicators that we use but ultimately its all about what our eyes see and what do we do about it.

It was indeed a thought provoking discussion. 

Healthy And Wealthy Trading



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