This is a YouTube video titled "Why Your ‘Perfect’ Trading System Is Probably Broken (And How to Spot It)" containing a monologue from July 10, 2025. The speaker discusses the emotional challenges and common pitfalls in developing trading systems, emphasizing the importance of skepticism when a system appears too perfect and the need to manage ego and emotions during system development.
If you have something which works fantastic on all different stock universes and everything looks like a straight line, yeah, it's most likely wrong. I really like developing systems. This is actually why I am doing this. Like I love it. This brings me really a lot of satisfaction. It's nerdy stuff. I see something in my bubble. Either I read a book, I see a post on Twitter or X now, or I get an email from different web pages or blogs and I read it and I get a hinge. Oh yeah, this might work. I cannot describe it. It's just like, okay, my next project will be this. And then the majority of the times this is fruitful. And then sometimes I have something the last week or something, I thought, oh my gosh, this genius. The system looks so good. Now I already know, okay, if something looks so good, most likely there's bug and I couldn't find the bug and it's like, oh man, I got something really nice and I got excited and now I know, okay, now is the point to shut down the laptop, sleep, look at it the next morning. Yeah, I found a bug. There was a forward looking dials in it. And afterwards the system was crap. This emotional roller coaster. I realized within the years, okay, what happens when you develop a system which makes money? You get a huge ego boost. Your emotions telling you like, oh man, you're great, you're invincible. Like, who cares outside what happens? You have a money machine now. Like, you can really, really like your ego boosts up a lot. And if you don't have your feet on the ground very steadily, you lose contact to what is actually objectively possible and where maybe there was a flaw. So within the years I realized, okay, once this ego boost starts to kick in, I'm getting, I'm getting really cautious about this because 99% of all cases there was a flaw in the model. Okay, maybe it's good to see how the strategy works in real life to see if your assumptions are correct. If this works, then the strategy is nice, it's a good add on. But if you have something which works fantastic on all different stock universes on the US market and everything looks like a straight line, yeah, it's most likely wrong and it's an experience to get with to handle your own emotions. This emotional roller coaster, something my personality brings to the table, that I get easily excited when I really like something. So I have to be cautious about it. And one way, how to do it, how I do it, I just leave it. I just shut the computer or do something completely different. And then look at the next day or the next day after. Because then you. Life brings you back to the ground. You see what's really important in life, and then you're looking for, okay, there must be something of it. It's not possible. And then you find it.
