Trading for Living

Do you think as long as you have one consistent profitable trading system then transforming from part time to full time trading FOR LIVING is easy? I want to say YES, but NO is the right answer.

Why not? Every system having it's own drawdown. Consistency is not measured by month, (by week, or even by day!). Consistency is measured by year, or several years. Accepting a losing month for certain trading system is logical outcome. Also means, expecting consistency return every month (let's say 5%) from now until forever is unrealistic way of trading.

Also, the nature of market is dynamic. Many profitable trading system needs parameter adjustment, both "gut based" and mechanical system following dynamic of market. Top traders having consistent habit of refining strategy, to make sure strategy still in sync with current market condition.

If you are trader, and planning to trade for your source income, then having multiple consistent profitable strategy is a must.But if you are not a trader and interest to follow my trade, you could mail me. I will give you 1 month trial FREE, no credit card required.

Robust Trading System Development

Useful reference for trading system development:

According to Tharp Think, a trading system consists of several parts:
- beliefs behind the system,
- setup & entry rules,
- filters,
- risk definition (1R),
- exits,
- a position sizing strategy

Another useful input for robust system development not to curve fitting (bactest result oriented by excluding data, modify rule based on specific history), which will make backtest result different from realtime trading.

Resiko 5% per Posisi Masih Terlalu Banyak

Selama ini trading dengan resiko 5% per posisi, risk/reward 1:3. Semua berjalan baik-baik saja sampai akhirnya datang bulan yang tak diharapkan setelah 2 tahun trading konsisten, drawdown 20%! Tak mudah untuk bisa tidur.

Lalu disarankan oleh seorang professional trader, "Jangan terlalu membuat diri tertekan, janganlah mengharapkan bulan depan profit berapa, tapi lihatlah lebih panjang. Lihatlah tahun depan, atau 3-5 tahun ke depan. Biarkan akun berkembang perlahan tapi pasti. Harapkan 10 loss berturut-turut. Saya pernah menemui trader yang menumpuk resiko dan akhirnya melupakan sistem profitable setelah drawdown yang pertama."