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Dear Simon,
I trade a purely mechanical system for the DM, SF, and Jy.
I back tested and looked at every day going back the 17 years I had
data for.
This agonizing process was equivalent to a basketball player shooting
thousands of free throw shots. Creating muscle memory so that there is
no thought process involved. Just pure reaction to what the market does
on any particular day.
One of the things that I discovered concerned the draw down periods.
Let's say you have a three month draw down period. You have to be able
to trade for perhaps ANOTHER three months to make it back to breakeven.
So now you have traded SIX months with no profits! Psychologically
you are exhausted.That's when the temptation to skip a trade is the
greatest. And of course that's when a very profitable trade can occur.
Advice? Patience, patience, patience. Currency markets are very
trending and will reward your efforts. Eventually. By the way, you
can't stop trading when you go on vacation. Currency traders around the
world could care less that you want to work on your tan or venture off
to watch for whales. Trading is something that you decide that you have
to do not just want to do. The profits are not the top priority
although they are a necessity.
Ed Karlin
Simon Trevor wrote:
>
> RT's
>
> Is there anyone on this list who is successfully operating a purely
> mechanical system? If so, on how many different markets is it being used and
> for how many years has it been successful?
>
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