Ten Most Important Rules To Become A Successful Ssystem Trader

ten most important rules to become a successful system trader

To be a long term successful trader, you should be okay being a short term loser. Learn to accept the losses.
You can’t be a winner always, instead of fighting against drawdown, make peace with it, learn to live with it.

Always remember every trading outcome is random in nature, most traders at times think “I faced three continuous winning trades, fourth can be a losing trade, hence am not taking the fourth trade” No, don’t do that. You can never be sure about the outcome of your next trade.

Never override your trading system. Trading System always win in the longer run, let it do its job, do not interfere with it.
There are traders on Twitter who always makes profit, without any drawdowns. Don’t fool yourself, it’s better to unfollow such handles.
Failures/Setbacks are part of life, we are able to live with it, and we know only when we deal with such setbacks, we can come up in life, similarly Drawdowns are inevitable, only when you learn to handle it and deal with it, you can hit the new equity high.

Always doubt your trading system before implementing it, not after going live. If a trading system is with small or insignificant drawdowns is more likely a result of chance, randomness, or curve fitting.
Always trade small when you start trading a system, get used to its daily fluctuations and gradually increase your stake in it.
No matter how high the returns looks like, don’t fall for it. Always check how much risk you need to take in order to achieve that returns. If returns to drawdown ratio is very small, you can avoid it or reduce the leverage and trade it.

Above all, always assume “Your biggest drawdown is always in the future” So risk smaller with each trade, if you want to strive in this business for long term.