[Episode 2] The Trader's Principles and System Trader Advantage
The second installment of "System Trading for Top Intelligence" explains the principles of traders and the advantages of system traders.
The main site isInitiative - Future Thinking System TradersThis site covers a broader range of topics, but in "System Trading for Top Intelligence," we delve deeper into the themes, so please bear with us.
【Differences Between Traditional Traders and System Traders】
There are frequent occasions where you don’t get along well with traditional traders. System traders aren’t particularly good at talking about market sentiment or their own positions. From the start, it’s often unclear whether going up or going down will be more profitable. One reason is that they adopt a特殊 trading style that applies to the market by repeatedly entering and exiting. You may also treat automated trading as the same as system trading.
【Trading Frequency – Meaning of a Single Trade】
There is no need to be elated or depressed by the result of a single trade. This is a very important concept. If you hit the jackpot once and stop trading forever, that’s another story, but betting everything on one trade is gambling itself. Trading should not be like that. Trading actions continue thereafter, and the market always exists. Trading is a sequence of consecutive actions, so the total of those actions matters.
This is almost the same idea as baseball batting: it’s not about hitting a home run and ending it, but about repeatedly practicing to raise batting average and RBIs. System trading is built precisely on that idea.
【Deep Considerations on the Trading Process】
It is not entirely correct to say that results of trading are unimportant. If you don’t deeply reflect on each trade, there will be no ideas for improvement, and the strategy itself will become stale. Ideas arise from reflecting on each trade, which helps prevent strategy obsolescence. For system traders, without that process, surviving long term becomes difficult.
If ordinary traders are 80–90%, the advantage for the minority system traders, who view trading as a continuous action, is clear. Consistency is a standout quality. However, merely resting on that is harmful, and profits can decline. To aim for excellence, you must gain experience in real trading, build and refine strategies, and continuously start new ones. It’s about looking at the process, not just the result of a single trade.
【To Become a Successful System Trader】
Being a trader is a demanding profession. Successful traders labor to think hard and win with every trade. A "system trader" can systematize or automate trading to ease operations, but the principles of trading are the same for every trader. The advantage of system traders over traditional traders is that they systematize or automate trading to ease operations. It does not mean you can profit while you sleep. Do you think that if you devote the same effort as top traders to strategy development, you will absolutely succeed?
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Top Intelligent is a term derived from top athletes, meaning athletes who use their brains. Trading requires practice and mental imagery like athletes. You cannot predict what will happen in actual practice, but just as athletes are expected to perform, results are demanded. And for that reason, training continues. There will be times when things don’t go well, but we pursue the pinnacle with an unyielding spirit (resilience) and never give up.
Until now, elite and intelligence have been associated with glass-like fragility and delicacy, but that is not the aim. We aim to unleash the so-called hybrid vigor and press forward. Let us walk together with readers toward the ideal of top intelligence, who are incredibly resilient, unlike typical top athletes.
Regarding strategies, we strive to publish as much as possible and incorporate open-source thinking. Let’s evolve each other’s investment techniques through output and idea refinement.