System development: Bad entry? You better have maximum exit efficiency


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Trading system design can be incredibly fun. Running those tests, squiggly lines everywhere, seeing those results come in showing you will be making $3 Bajillion a month for the rest of time is what the trading industry is hinged on.

Developing that unique strategy to get you into the market just before the turn, or the breakout, or the strong continuation of a trend becomes the overlord of your trading life.

A filter here, a tweak there and your equity curve goes from a 90 year old bum, to a babies bum in no time (you know, wrinkly vs smooth .... it was the best I could do in in 40C heat).

But random shower thought for you:

Great entries are ruined by bad exits. Bad entries are rescued by great exits. Flip your system focus to what is important. #trading #forex— Adam Jowett (@BigDaddyManCan) February 12, 2017

It's what came to me half way through my third cold shower for the day. I have known this for at least half of my 17 years in the markets, but just didn't know the elevator pitch for it.

Now I do.

Think of it this way, you eat a bad meal, nacho chips, cheese, lots of spicy salsa, sour cream, some of the plastic liquid cheese stuff on top and everything greasy you can find off the floor.

The moment you stuff that in your face, that's literally a bad (food) entry and you feel awful for it.

The only way to make yourself feel better? Maximum exit efficiency.

And so be it with trading.

Yep nachos, trading and bums all in the one post. Nailed it.


Adam Jowett

Full-Time #ECommerce Entrepreneur. Financial markets #trader since 2001. Hobby Writer. Cancer conqueror. The host of The @100Incomes Show. Will hug on command. Blogs without pants.