Can You Profit by Using Someone Else’s Trading System?

A trader's system is like a swordsman's sword. If you want to use it to kill the enemy, there are two conditions. First, it must be a good sword. If it is broken by someone else, your life will be wasted. Secondly, you must be able to use a good sword. Otherwise, not only will you not be able to kill the enemy, but you will also hurt yourself. Most manual trading systems require a certain amount of experience. Even if you get the sword manual, you still need a lot of training to use it well. There is also a quantitative system, which is like a precision machine gun that can kill the enemy by pulling the trigger. Others will not give this kind of system to you easily. Giving it to you is equivalent to asking you to compete with him for his head. If you use it too much, it will malfunction.

By the way, let me break down a rumored miraculous system. I heard that the author relied on this system to increase 44 times in three months and won the Wall Street Trading Competition four times. Is it really so magical? Come and take a look. The system uses a total of three moving averages, namely the five-day, the 25th and the 200-day, and two moving average lines, that is, the moving average periods of the trading volume are five periods and 60 periods respectively. How to use it? When the following conditions occur, the 125-day moving average is above the 200-day moving average, the 5-day moving average is above the 60-day moving average, and at the same time, a positive line drives the 5-day moving average to cross the 25-day moving average. If the above three conditions are met, you can enter the market to go long, and then it is gone, really gone, there is no stop loss, no exit conditions, and no position management. This is not a complete trading system at all, it is just an entry condition, and the long position is arranged. It may be something that can be clearly explained in one sentence through his entry. So is this signal a good or bad signal? In fact, we have already evaluated it and found that this signal is acceptable. With reasonable stop loss and exit conditions, profits can also be achieved, but it can also be optimized better.

Summary: There are certain risks in using other people’s trading systems. Please use it with caution before fully understanding the author’s ideas. Through extensive backtesting through review software and combined with your own core trading cognitive system, the effect will be better. The focus is on the depth of personal understanding of the market, which varies from person to person!