How to Develop a Trading System that will Work for You.

How to develop a Strategy that will work for You??

Lets Start with Coin Toss we do in childhood to decided who will bat first. 

COIN TOSS Math:- Only probability is 50% of Head & Tail. However in Out of 10 toss you will not get actual 5 Head/Tail it may be 3,4,5,6.

So if we develop a system with 60% Probability when its goes live and we trade based on this set up if it HIT more than 60% we start thinking that strategy is perfect or if it HIT 40% then strategy is not good & we drop it. 

when u go through the book “FOOLED BY RANDOMNESS” by NASSIM NICHOLAS TALEB you will find you are actually fooled by randomness. 

60% even if 70% Win rate not guarantee profit on year on year basis.  Because Market is dynamic and it run on the emotions of the people and emotions changed in the matter of second.. What matter is RISK-REWARD ratio i.e what u are earning when u are right and what u are loosing when you are wrong.