Realtime Execution Blundering Traders

[Guest OILFXPRO]

At the most basic level, people must trade by processing information. Unfortunately, we're not very efficient information processors. We have a lot of biases which enter into trading decisions. , trading/investing are very simple processes and we human beings try to make it into something much more complex. Those biases are all about adding complexity to the world.

 

Is it really that simple?

 

Consider the trading rules that work: 1) follow the trend; 2) let your profits run; 3) cut your losses short; and 4) manage your money so you can stay in the game. If you design something around following those rules, you'll make a lot of money.

 

Science facts:*Our brains are bombarded by an estimated 2,000,000 bits of information every second. Processing such a huge amount of information would cause the brain to “freeze”. Therefore, we delete, distort and generalise most of it down to around 134 bits of information.

What this means is that we choose only a tiny proportion of the total amount that is available to us, and those 134 bits of information we allow in to our brains are the things that determine what we call reality.

Your mindset must be clear of everything , except the system following thoughts ., and get rid of all your other thoughts when placing trades. Your mind must be totally focussed on trading , and only on the trades , so no point in having your girlfriend* sitting on your lap when trading.

 

UNEXPERIENCED TRADERS DO AS FOLLOWING

 

I hesitate to put on trades , am afraid of putting on trades , my previous losses put fear in me , my previous mistakes put more fear in me and I want to be right (so I delay putting on trades ).I know everything , it is all in my brain when I am trading.

 

My charts are clean , I can see clearly on the charts support resistance , trend lines , areas of confluence , areas of high probability .

 

why is this not visible in real time trading decisions?I had many other traders who had same problem , they know everything , but in realtime it was not there. This is a fact.some rules and criteria were forgotten in real time execution.

 

Why is it everything is not coming out in realtime trading. and being

applied correctly ? A lot of this know how disappears in realtime ,it seems that way.

This business about "it is all in the brain. and clean clear charts ". Is not working.so we need to make it work another way , for the better.

 

One minute a trade on dax is being processed and trade is being managed , in 5 minutes there is another entry on gbp usd being processed , that is more than enough for the brain to cope.15 minutes later. EGBP entry needs to be processed , the brain is overloaded with tasks and information , it can not perform effectively and can not process information. without mistakes ,

 

Humans can not process so much information ,on 12 different instruments , with all information on supports , resistances , trend lines , channels ,rules, systems ,etc on several times frames (and keep it all in the head).i do not believe it will work without mistakes.

 

A load of information needs to be ready and easily visible at time of entry and well before entry , rather than the brain start to processing of information in real time.I have suggested separate folders and images with trade able information on a chart. , with potential trade areas , high probability trade entry zones , double break zone , support areas , tradable triggers etc

Edited February 5, 2014 by OILFXPRO
offensive language

[Guest OILFXPRO]

They close trades if they have doubts , even if system rules forbid closure of trade , even if doubts are not valid.

[Guest OILFXPRO]

Mistakes were made in drawing support and resistance lines and was drawing them innacurately , they resulted in more losses and execution errors.The person has it all in his head , he does not need to draw major supports and resistances and trend lines on his charts , he likes to keep them clean.

 

In real time he misses vital information , but tries to process it all in his head , despitte the inability of his brain to process it all.

[Guest OILFXPRO]

Trader job is split into trader and analyst (system signal provider)

 

If a trader is looking for trades , managing trades and verifying trades , it is difficult to do 3 jobs at same time. In large institutions , the job is split into several jobs like fund manager , psychologist , risk manager , analyst and trader.In trading .the trader's job is several jobs combined into trader.Traders make a lot of mistakes , in real time trading , because their minds are overloaded With information processing and tasks to execute trades ,

 

It is better to split the job of trader into two jobs I.e analyst and trader.Analyst will give signals (emotional detachment from execution and result) , trader will execute with emotional detachment,Traders often get overcome by emotions of losses and losing trades , they often freeze after losing trades and are often overcome by many other psychological issues.

 

Analyst will be able to provide for signals analysis for more trades and will provide better high probability analysis . Trader can execute trades better and trader can manage more trades , if two different people do the jobs of analyst and trader.

 

The mental edge is the mindset to execute the statistical edge correctly or the system .The human brain is wired to destroy the statistical edge ,this is the main reasons why most traders will turn a winning strategy into a losing strategy , on live accounts , with mistakes in real time.

 

Give a wining system to 100 traders and 99 percent will lose due to impatience , lack of discipline , greed , fear , emotions. ,biases , lack of certainty. , inability to trade with uncertainty ,revenge trades , monkey brain responses , the need to be right , stress responses , lack of knowledge experience and a dozen other psychological reasons.

[Guest OILFXPRO]

Technical analysis based systems THAT WORK CONSISTENTLY are difficult to automate t. And that is the reason why manual skills are required but manual skills also comes with certain constraints and perfection is not possible. I have gone through and tried your strategy and system and found it a little bit complicated to execute.

[wmck6167 10]

Technical analysis based systems THAT WORK CONSISTENTLY are difficult to automate t. And that is the reason why manual skills are required but manual skills also comes with certain constraints and perfection is not possible. I have gone through and tried your strategy and system and found it a little bit complicated to execute.

 

If strategy is in mental side, probably it's difficult to materize it. I am not sure whether it's right or not. But just provide my opinion.

 

Cheers,

[Guest OILFXPRO]

If strategy is in mental side, probably it's difficult to materize it. I am not sure whether it's right or not. But just provide my opinion.

 

Cheers,

 

brain science is the least known about , that is why it is difficult to find a solution.

Edited February 28, 2014 by OILFXPRO

[wmck6167 10]

brain science is the least known about , that is why it is difficult to find a solution.

 

Brain science, tried to find out how brain work on mind... Back to original assumption, could mind (or spirit) be materized (manuipulated or understanding by science approach)? Just curious.

Cheers,