The catch is executing them - let me explain this in more detail.
I bought the system and it consisted of one parameter and that was it. The logic was easy to understand and you could see why it worked longer term - but do you know what?
I couldn't execute the system in line with the signals and this is a common problem.
My reason was it was at the start of my trading career and I was trading money I couldn't really afford to lose - I put my own input in ruined the system and got my reward - a huge loss.
Serves you right you may say and yes it did - but there are other related problems why traders lose.
Most of the Systems Sold Are Junk
I know now with my experience of trading 99% are junk and will never re produce the gains they make on track records presented - Why?
Well at least on the one I traded had a real time track record - but most sold today, are by marketing companies who simulate in hindsight a track record - well we can all do that knowing the closing prices!
They are normally based upon rules that are not revealed, or rules that have been curve fitted (if you don't know what curve fitting is look up my other articles) and the trader who thinks he will get rich for a few hundred bucks or so gets wiped out - lesson learned.
To trade a system, you really need to look for a real time track record but even with this, you face a problem:
Drawdown
Drawdown is the problem with any system. Those losses on paper, don't hurt like they do when you lose real time.
If you are following a forex trading system always assume the worst drawdown is ahead (and very few good ones drawdown by less than 30%) so, when studying the track record, don't look at average drawdown, look at worst peak to valley drawdown in amount and period of recovery and accept that's going to happen - that way things can only get better.
Following the markets
If you follow a purely mechanical trading system don't watch the news!
Whilst we know its wrong and reflects the herd, when your trading system opposes those sensible news stories, you have a problem of discipline and believe me, those news stories can frighten the hell out of you and make you feel dumb for following even the best systems.
Pay to much attention and you are tempted to interfere with the system and that means the end of your system.
Following mechanical trading systems is hard and you must be disciplined at all times.
You need to ignore the news, accept drawdown cheerfully and understand the system logic and ideally to instil confidence, have a real time track record, to know the system has at least worked and is based upon sound logic.
If you can do the above, then mechanical systems are a great way to make money.
If you cant, then you should devise your own with as much human input as necessary, to make you feel comfortable.
The system I traded on and lost, won for many people and its logic is timeless - but I made no money with it which taught me one of the biggest lessons of my Forex trading career.
King Solomon was inspecting his unique Hosts; and he reviewed the birds, He had a glance see the hoopoe but he could not see him. And when he became certain of the hoopoe's absence, He said: I verily will punish him with hard punishment I will pluck out [all] his feathers as well as his tail plucked and leaving him out in the sun, where he would not be able to escape from reptiles, or I verily will slaughter him, by slitting his throat, or he verily shall bring me an acceptable excuse and a good reason (for absence). The Hoopoe did not remain long [in absence], in other words, [he was away only] for a short while, and came to Solomon humbly, with his head up and his wings and tail lowered. Solomon pardoned him and asked him about what he had encountered during his absence: and he said, 'I have discovered something of which you have no knowledge, and I have brought you from Sheba a verified report and sure tidings. Sheba (Saba) is Yemen today. The Hoopoe said: Lo! I found a woman ruling over them and she has been given abundance of everything; she has been given the knowledge of all things in her country, and has a mighty throne adorned with gems, pearls, gold and silver. I found her and her people prostrating to the sun instead of Allah, and Satan has adorned for them their deeds and he has barred them from the Way, from the path of truth, so that they are not guided So that they do not worship Allah; why do they not prostrate to Allah?" the Hoopoe said! Who brings forth the hidden in the heavens, the rain and the earth vegetation, and knows what they conceal, within their hearts, of good and evil and what they proclaim with their tongues of good and evil. Allah - there is no god except Him, the Lord of the Mighty Throne' (this clause constitutes an [independent] new sentence, which is a eulogy comprising [praise of] the Throne of the Compassionate One to counter the [description of the] throne of the Queen of Yemen: between the two, however, is an unfathomable difference. He, Solomon, said, to the hoopoe: 'We shall see whether you have spoken the truth, in what you have informed us, or whether you are of the liars Solomon then composed a letter in the following form: 'From the servant of Allah, Solomon, the son of David, to the Queen of Sheba. In the Name of Allah, the Compassionate, the Merciful: Peace be upon those who follow Guidance. To wit: do not rise up against me [in defiance], but come to me in submission'. He then stamped it with musk and sealed it with his ring, and said to the hoopoe: Take this letter of mine and deliver it to them, then turn away, withdraw, from them, but remain close by them, and see what kind of response they shall give. Thus, he took it and approached the Queen. But as her soldiers were all around her, he cast it into her private chamber. When she saw it, she shuddered and was consumed by fear. She read what it said. =========
This interesting story of King Solomon, the Queen and the Hoopoe are found in the following verses:
Surah (Chapter) 27:20-28
20] And he (King Solomon) reviewed the birds then said: "why is it I see not the hoopoe here? Or is he among the absentees?" 21] I verily will punish him with a terrible punishment or I verily will slay him, or he verily shall bring me a plain excuse and a good reason (for absence).' 22] He (the Hoopoe) was not long in coming, and said: 'I know what you do not know. I come to you from Sheba (Yemen today) with certain news and sure tidings. 23] There I found a woman ruling over them. And she is provided with every requisite; and she has a magnificent throne. 24] But she and her people prostrate to the sun instead of Allah. And Satan has made their deeds seem pleasing to them and barred them from the path, and therefore they are not guided. 25] Do they not prostrate themselves to Allah who brings forth all that is concealed in the heavens and earth and he knows what they hide and what they reveal? 26] But he: he is Allah, there is no god but he: he is the lord of the mighty throne. ' 27] (Solomon) said: 'we shall see if what you have said is true or whether you are among those who lie. 28] Go with this my letter and throw it down unto them; then turn aside and (wait to) see what answer they return,
=========
It is amazing that the Quran declares these facts about the unique Hoopoe of King Solomon, it was very Truthful, faithful, obedient, acting as a spy and messenger and the most important is the fact that the Hoopoe knows Allah, his Creator! On the other hand, the Bible in Leviticus 11 declares that the Hoopoe is a Detested and Unclean bird.
========= Back to the main issue of my series of articles; this is my question to you smart readers: "Is the Quran quoted from the Bible?" By the way, the disbelieved ignorant Arabs stated that the Quran quoted from the Bible more than 1400 years ago! (Read my article about chapter 25).
Both Kelly Price & Dr. Ibrahim Khalil are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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