Shravan Venkataraman Profile picture
software engineer @ a payments co. | building @earningsq with @hemis_research on weekends

Oct 1, 2020, 5 tweets

When you start trading a thoroughly tested system once it has created in you the fullest faith through the testing process, you feel an immense sense of calm through losses and profits. If you don't trust your system completely, you haven't tested your system rigorously.

And, when you don't trust your system completely, that's when your monkey brain asks you to intervene and do stupid things that will skew the system's results. Intervening and making a loss is great. It reinforces the sense of "knowing" to trust your system and not mess with it.

What would be disastrous is intervening with discretion and actually making a profit or even a windfall in one trade. This brings negative reinforcement, lures you into thinking you can intervene and that your discretion and intuition are better than the system you have tested.

This eventually leads you to doing certain things that will lead you into bigger losses than what you'd have got if you had followed the system. That's when you'll know that you have been shown your place by your system.

If you have a system that you have thoroughly tested and rigorously checked using the right tools and methods, it pays to place the fullest trust on the system, even in understanding when the system no longer works by looking at the deviations.

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