A short conversation (Adrian Reid + another speaker) about how hard it is to find genuinely profitable trading systems online because many are curve-fit or ignore real trading costs. They recommend testing systems yourself, learning from flawed strategies, combining multiple "good" strategies into a diversified portfolio, and abandoning the search for a single "amazing" system.
Finding a profitable system is, is challenging. Like you can go on the Internet.
And you can, you can Google trading system, you can Google trend following system, mean reversion system and lots of stuff will come up.
But the challenge is most of it's garbage, right? And most of the things that, that you can free get access to for free or easily find don't work because they're, they're curve fit or they're like.
Overfit to pass data, or they don't take into account slippage and commissions or they haven't been programmed properly or all sorts of things.
So many systems that you find have a flaw. Now over my shoulder you can probably.
See a whole bunch of trading books if I'm on the right kind of screen here. And.
I've tested a whole lot of training strategies from many of those books and even some of them are flawed when they don't work or they don't work.
As well as what they think, what they say.
Now if that's true, then how do.
You find a good system? Well.
Even if a system is flawed, you can learn something from it and.
You can take bits of it and repackage it into another system. You can find a system and test it for yourself.
And if it is good, then you can trade it.
If it's no good, then you can learn from it or throw it away.
The key is to eliminate blind faith. You want to be open to testing ideas and also very open and eager to throw them away because most things don't work. But if you'll test a whole bunch.
Of ideas, you'll find some that do.
Work and then you can trade those. All you need is a good strategy. You don't need a great strategy because.
If you can find a good strategy, you can follow it.
Then you find another good strategy that's.
Diversified and you follow that and then you find another good strategy and you build a portfolio of these things.
Then all of a sudden you've got a great portfolio built from good strategies. But most people are looking for that one amazing strategy. But amazing is really hard to find.
Good is much easier.
And you don't need amazing because chances.
Are amazing isn't real anyway. It's probably overfit to pass data. It's probably, you know, it might be not, not taking into account commissions or any, all sorts of things.
So we're going to stop the search for amazing, stop the search for perfect.
And start the search for good. And then when we get a good strategy, we test it for ourself, we build confidence in it, and then we follow it, and then we go find another strategy.
