Hello,
All followers of technical analysis are aware of the point that
no formula is 100%.
What matters money management.
Plan you risk per trade and that would make a difference.
If your system is giving you 55-70% success then money management
holds the key.
Risk per trade is most crucial as when the trade goes wrong you
should loose less.
Defined loss is advance.
Say for example in term of Indian Rs define Rs 2000
per trade and stop loss difference is Rs 10. Then the volumes should not be
more that 200 qty.
System are made on certain logic and observation.
Which throws automatic result of your thought logic and
observation.
In system trades are flashed. But are all not done or
implemented as sometimes humanly it is not possible to implement due to
various reasons.
You will further develop own sense on observation of the
automated result which you can to take care of whipsaw.
When you make a system, you know when the whipsaw is likely to occur
therefore you are prepared for it mentally and financially . Can avoid at time
also.
It is likely a ball pitched on your legs and you whip by flicking
it for 4. It becomes instinctive after some times with practice.
Subjectivity is converted in Objectivity.
On objectivity you can bring subjectivity when to do and when
not to do.
It is impossible to trade on all possible signals humanly
therefore you will be selective on when to trade and when not to trade after
the result of system.
If you are doing your analysis correctly on most of the time and
you are practicing and observing . Result will be seen.
Thanks
Hitendra Vasudeo
www.stockmechanics.com