The Trading System That Is Never Effective

[zippitysucker 26]

I've noticed that everyone in the trading system forum is looking for trading systems that work nearly 100 percent of the time. Maybe that's a bit of an exaggeration. Perhaps people want to get as close to 60 percent as possible, or 60 percent or higher. All of the trading systems I've seen here have one thing in common: people are looking for one that works the most frequently, or frequently enough.

But what if we changed our minds and decided to find and test a system that will never work? That costs you money 100% of the time? Doesn't that seem like a simpler option?

Wouldn't it be a huge breakthrough in Forex trading if we could find, write rules for, and develop a system that loses you money 90% to 100% of the time?

You might think I'm crazy if I say this, but think about it. If you discovered such a system, all you'd have to do is the opposite to always make money.

Is this something that has ever been considered?

[badshart 24]

Yes, it has, and that system would still be useless if the signal were reversed.

[MiSt_Lix 35]

Reverse a losing system will never make a winning system ...

[Pinkcake 22]

7 minutes ago, zippitysucker said:

I've noticed that everyone in the trading system forum is looking for trading systems that work nearly 100 percent of the time. Maybe that's a bit of an exaggeration. Perhaps people want to get as close to 60 percent as possible, or 60 percent or higher. All of the trading systems I've seen here have one thing in common: people are looking for one that works the most frequently, or frequently enough.

But what if we changed our minds and decided to find and test a system that will never work? That costs you money 100% of the time? Doesn't that seem like a simpler option?

Wouldn't it be a huge breakthrough in Forex trading if we could find, write rules for, and develop a system that loses you money 90% to 100% of the time?

You might think I'm crazy if I say this, but think about it. If you discovered such a system, all you'd have to do is the opposite to always make money.

Is this something that has ever been considered?

Lol.... turning upside down your broken monitor only give you more worse.. picture...

[Pickleree 18]

10 minutes ago, zippitysucker said:

I've noticed that everyone in the trading system forum is looking for trading systems that work nearly 100 percent of the time. Maybe that's a bit of an exaggeration. Perhaps people want to get as close to 60 percent as possible, or 60 percent or higher. All of the trading systems I've seen here have one thing in common: people are looking for one that works the most frequently, or frequently enough.

But what if we changed our minds and decided to find and test a system that will never work? That costs you money 100% of the time? Doesn't that seem like a simpler option?

Wouldn't it be a huge breakthrough in Forex trading if we could find, write rules for, and develop a system that loses you money 90% to 100% of the time?

You might think I'm crazy if I say this, but think about it. If you discovered such a system, all you'd have to do is the opposite to always make money.

Is this something that has ever been considered?

No, not this week 

In any case, the complexity is greater than finding a winning system because you need to find a consistently losing system that also wins when reversed.

[speechhumour 3]

12 minutes ago, zippitysucker said:

I've noticed that everyone in the trading system forum is looking for trading systems that work nearly 100 percent of the time. Maybe that's a bit of an exaggeration. Perhaps people want to get as close to 60 percent as possible, or 60 percent or higher. All of the trading systems I've seen here have one thing in common: people are looking for one that works the most frequently, or frequently enough.

But what if we changed our minds and decided to find and test a system that will never work? That costs you money 100% of the time? Doesn't that seem like a simpler option?

Wouldn't it be a huge breakthrough in Forex trading if we could find, write rules for, and develop a system that loses you money 90% to 100% of the time?

You might think I'm crazy if I say this, but think about it. If you discovered such a system, all you'd have to do is the opposite to always make money.

Is this something that has ever been considered?

So many times.
Consider a system that buys at market price and closes the position immediately. Obviously, it would lose the spread on every trade 100 percent of the time. Obviously, even if you "reverse" it so that it only sells, it will still lose the spread on each trade.

[speechhumour 3]

No, not at all. I understand the concept of reversing it, but I don't believe it will accomplish much. For one thing, reversing a losing strategy is unlikely to result in monetary gain.

[hopelessneptune 49]

You are not insane; your problem is that you believe you 'invented' a brilliant idea that has been copied by almost every experienced trader.

It is now just as difficult to think of a losing system as it is to think of a winning system. The reason is straightforward: if you reverse this type of loser, you'll get a winner. Will the world ever be so easy to work out like this?

The 99 percent system that we see in the crap system section is a random system. They don't make or lose money; they just make useless junk. You can see that they are losers primarily because of the spread/commission paid over time, or their edge is not sustainable/tradable. It is still a waste of time to reverse them.

Finally, don't be overly optimistic; simply pay your dues. The winner exists, but getting there is difficult.

[jpane 11]

24 minutes ago, zippitysucker said:

I've noticed that everyone in the trading system forum is looking for trading systems that work nearly 100 percent of the time. Maybe that's a bit of an exaggeration. Perhaps people want to get as close to 60 percent as possible, or 60 percent or higher. All of the trading systems I've seen here have one thing in common: people are looking for one that works the most frequently, or frequently enough.

But what if we changed our minds and decided to find and test a system that will never work? That costs you money 100% of the time? Doesn't that seem like a simpler option?

Wouldn't it be a huge breakthrough in Forex trading if we could find, write rules for, and develop a system that loses you money 90% to 100% of the time?

You might think I'm crazy if I say this, but think about it. If you discovered such a system, all you'd have to do is the opposite to always make money.

Is this something that has ever been considered?

That will never work in psychology because a system that consistently loses is easily equivalent to a system that consistently wins, even if you deny it consciously.

Your mind would have to be in the right frame of mind for this to work.

(a) find a system that works nearly perfectly.
(b) simply reverse the signals

You're probably thinking that it would alleviate the pain and stress you're experiencing while looking for the "impossible dream" (which isnt impossible, but it seems to be).

I recommend reading "trading in the zone" for this.

It teaches you a new way of thinking:

Each trader is analogous to a casino: each has an edge that pays out consistently over time.
What exactly is an edge? When the probability of winning exceeds the probability of losing, this is referred to as having an edge. In the case of the trader, you decide what kind of edge you want based on how you perceive the market.
But, just like in a casino, you can't predict the outcome of every card hand. As a result, the distribution of winners and losers is random.
If you lose and experience pain, it crushes your perception and narrows your focus, making it difficult for you to perceive the market with all of the knowledge you have gained. This causes you to rationalize not entering a trade, taking profits too soon, and making other mistakes that prevent you from objectively testing your edge (objectively = no pain!)

So you'll need a way to avoid feeling pain.
You can accomplish this by developing a belief system that includes 5 fundamental truths (and the reasons for them) as well as 7 or so reasons why you are a consistent trader.

5 essential truths
1. Anything is possible.
2. You don't have to know what's going to happen next to make money.
3. For a given set of variables, there is a random distribution for an edge between losers and winners.
4. An edge is simply one outcome being more likely than another.
5. Each market moment is distinct.

Verifying these five fundamental truths will allow you to begin using them logically and persuasively. Instead of being afraid, you'll say something like, "OK, anything can happen, and I don't need to know what's going to happen next to make money, so I'll place this trade because I am a consistent trader." I haven't listed all seven reasons why someone is a consistent trader, but you get the idea!

Of course, you must believe in these truths; otherwise, the emotion will still be generated (Feeeeearrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

Thank you for reminding me; I had forgotten to pull out my trading in the zone sheet for today's trade.

[moonbeam 66]

Let me give you a hint as to what some people overlook...you can, and many do, have strategies that fail the majority of the time. But when they win, they keep their winners and milk them for all they're worth.