All Sorts Of Different Trading Systems

There isn’t anything wrong with technical indicators, forex robots, chart patterns, price patterns, astrology, a whole host of other systems and methodologies. There may even be some people making money with them.

It just depends how you want to rationalize “why” price is moving. It depends with what sort of analysis you want to feel comfortable with risking money in the markets.

There may be some people willing to risk money on a moving average crossover. Other people are willing to risk money on a forex robot signal, chart pattern signal, etc.

The people who are trading successfully using the above trading methods, have answered that “why” question, and feel comfortable taking signals and risking money from their system. Even though just answering the “why” and feeling comfortable doesn’t necessarily give you an edge. No one can explain every single trading system out there. There is no reason to try to. No one has enough time in the world to do so. It would be a fool’s errand.

Present the various trading systems, methodologies, and let the traders viewing the information decide. Let them decide what trading journey they want to take. Let them decide what fits their personality. Some of them may strike gold on the first attempt. Others may feel pain for a year or two. Others may be on a rough journey for ten years.

I was fooling around with hundred of trading systems, strategies, robots, and indicator settings before I settled into my current system. It was painful for two years, but luckily I got over it.

As for a trading edge.

Many trading systems operate under the assumption of that edge developing over a series of trades, sometimes a long series of trades whether 100 trades, or thousands. And there is nothing wrong with trading a system like that.

But the best traders figure out a way to have an edge, preferably a massive edge in the very next trade that they place, and the very next one after that. So they don’t have to sit through a series of hundreds of thousands of trades to know if they have an edge and if their system works or not. They take losses of course. But their mindset is different than the rest. Those traders prefer an edge now and immediately, within the next ten trades or so, as opposed to an edge developing over the next 100 or 1,000 trades.

To the extent that people believe that technical analysis, price action, fundamental analysis do not have an edge or do not work. Why would they not work?

The only reason they would not have an edge or not work is if they do not generate order flow and move the market.

If your trading system measures and analyzes the forces that can move the market, then when it fires off a signal, the market has to move, or stands a great chance to move because it is generating order flow.

Thus the other potential trading system, methodology, thinking and path that traders can take has to do with order flow analysis and order flow trading.

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