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SUCCESSFUL TRADING FACTS
To be successful in the field of futures trading, you have to combine two necessary features:
1. You must have a positive expectancy trading system. This is a system that has proved positive net results over at least the last year or so. Without a positive outlook for your trading system, there is nothing you can do to change a negative end result to a positive end result. Some systems show positive results while having less than 50% positive trades. I prefer positive results and a system that has more than 50% positive trades. Having less than 50% positive trades is too stressful on most traders and is one of the reasons why those traders stop trading a system after a few losing trades in a row. If the system has had positive results for the last year or so, there is no reason not to think that drawdowns are a part of doing business and are to be accepted as fact rather than as an excuse to stop trading. You just have to hold on and work through some bad times. All successful trading systems or approaches have them. No one is immune from this course of action. Larry Williams turned $15,000 into $1,100,000 over the course of a year. But during that time, he had mega-loss periods. He actually reached over $2 million in profits before settling for just over 50% of his high. During the run up, he lost, through drawdowns, over $800,000. But he persisted and worked through those drawdowns. You too will have to work through similar circumstances, albeit on a lesser grand scale – if you are to be successful.
2. You will never be truly successful unless you have some means of improving the results of your positive expectancy system. Otherwise you will take forever to reach your ultimate goal of financial independence. You can accomplish that goal by blending your trading system with a money management system that allows you to trade, with exactly the same signal parameters, but allows you to increase the # of contracts you are trading as your net profit grows. To accomplish this end, you have to find a method of determining when and how many contracts to trade per trade. There are set rules that have to be decided upon, and once determined, you have the chance of taking a positive results system and expanding the results to unlimited success. Like hitting a home run with the bases loaded. You will be amazed and a little awed by the speed of your success. At first, the rise will be slow, but as time passes, your profits will accumulate faster than you thought possible. All this can be accomplished by administering the “fixed ratio” money management approach to your trading system.
The TRENDWAY TRADING SYSTEM is a positive expectancy system (average 60.8% positive trades over 2 years), plus, the spreadsheet, that accompanies the trading manual, automatically determines the proper # of contracts to trade per trade – which in turn is determined by the most recent net profits. As those net profits rise, so do the # of contracts per trade. In a drawdown where the net profits decline, so do the # of contracts to be traded per trade. It is the ultimate trading plan. Nothing else even comes close.
All that is required on the trader’s part is to: -learn the Trendway rules, -start with enough equity to allow for possible initial drawdowns, -have the fortitude and discipline to follow all the objective rules, -not allow any personal subjective interference on your part, and -have patience, patience, patience.
YOU WILL BE REWARDED |