BO56: Sticking with Your System through the Good & the Bad Times

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 670 Ratings

🗓️ 14 April 2020

⏱️ 10 minutes

🔗️ Recording | iTunes | RSS

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Summary

The benefits of sticking with your system through good & bad times, even in the face of client pressure. Also why Investors benefit from not looking at their portfolios too frequently.

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Transcript

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0:00.0	Yeah, so this one got a lot of responses, probably the most I've ever had.
0:07.0	This really speaks to all the pain we all go through and how it really, what we have to deal with on a daily basis of
0:18.0	just sort of waiting for our systems to kick in and do what we hope that they do.
0:24.1	And maybe they'll preserve profit.
0:27.1	Maybe we'll give it all back.
0:28.2	We don't know.
0:28.9	We're waiting and we're hoping.
0:32.6	So it goes like this, the willingness to allow the current trades P&L to be determined by the system's rules
0:39.9	and not try to stop it, not try to stop the pain is a necessary and rare quality. It's an
0:47.2	illusion that discretionary moves can enhance performance. The current trade seems very important,
0:57.4	but it's really not in the long run. We're in the moment. We're losing. Clients are complaining. We've got to wait for this exit to hit.
1:06.2	If we do this trade and follow this system, our experience has been, that'll be a good thing.
1:15.2	It may not work in this particular situation,
1:17.3	but I'm in this situation.
1:18.7	And I really feel anxious and pain
1:22.1	that by following the system,
1:24.2	this particular trade may not work out.
1:27.3	But I am committed to all of the
1:29.7	trades working out and understanding that over time, following my system religiously to an extreme
1:38.3	way, will produce the best results. But these results right now seem so important. And maybe if I just liquidated
1:47.7	quicker, did a discretionary non-system trade move, I could actually help myself here. And it just
1:56.4	sows the seeds for worse performance in the future. and it's an illusion because this trade is not
	...

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