exp system

[exp]

ATTENTION: Modified System will be used for trading from today.

(1) As far as the details of the Modified System, it will soon be evident from my trades.
Generally speaking, there will be more trades in the direction of the trend and fewer against the trend.
Also, modified position sizing will be utilized.
Finally, trading vehicles will be more diversified.

(2) Modified System might be considered an euphemism for Malfunctioning System. However, the reason for the change is that I have carefully studied what conditions my system must necessarily satisfy in order to achieve 10+% monthly returns.

The first one is: avoid lost opportunities connected to large market moves (in either direction).
The second one is: avoid excessive losses.
The third one is: limit position risk to avoid either being stopped out of positions or incurring large losses.

(3) The Modified System is still not mechanical as I have not found satisfactory mechanical rules to apply in order to achieve optimal entries and exits.

(4) T/A unfortunately does not provide satisfactory answers to many questions regarding system signals to make them very reliable. So, as Ed Seykota, Richard Dennis, and others have noted, the answer must lie in optimizing position sizing/money management aspects of the system.

George