Doubt your System?

When a mechanical trader doubt his system, he should research his doubt and implement it to enhance the system performance.

Not long ago, my system for FCPO suffered the second consecutive losses. Long 2440 was stopped out at 2394. At the same time, system also signaled Short 2393.

This is a bear market and yet my system show Long signal. Weird? So far, in my monitoring of system, this is perfectly normal. So, no need to "doubt" my system.

Position Update

Yesterday, my system signals Long again for FCPO at the price of 2440. Hence, holding a losing position overnight.

As for FKLI Long (1626.0, Feb contract), system still show hold long. Since this is a short term system,  I will not roll over the position to Mar contract. If stoploss still not triggered at the end of the day, will let it expires by itself.

My First Post

This blog will show my trading signal in FKLI and FCPO using my very own SHORT TERM MECHANICAL SYSTEM. The system tries to capture very short term movement in FKLI and FCPO markets, normally holding a position 1 or 2 days. I designed the system in such a way that it is easy to follow and the drawdown is small and the drawdown period is relatively short (compare to many profitable long term trend following systems). After all, what the use of having a profitable system but couldn't follow it 100%. However this is certainly not holy-grail because I don't believe that holy-grail system exist in the marketplace. If you want all wins-no losses in futures trading, I would advise you quit trading as soon as possible. I can guarantee that you and I will have losses trading futures. Hence besides a profitable system, one must also prudent in managing the risks and money flow in association with trading. After all, trading itself is a business, probably a lucrative business.

As of this writing, system still hold Long FKLI 1626.0 from yesterday.

And for FCPO, system went long 2471 yesterday. Not long after, market hit the stoploss @ 2449.

That's all for my first posting. Stay tuned for the update soon.