Finding a 100 Percent Accurate Trading System

By | February 12, 2016
During my interaction with traders during my trading course,I came to know most of traders who loose money will keep changing their trading system the day it give them a loss. Till its milking money traders stick to it, but if 2-3 trades goes wrong they will keep the trading system on back burner and start searching for new one.
This whole attitude of changing the trading system is one of the biggest mistake of traders.
Traders will search through trading forums to find the next best trading system which will help them in earning profit they seek. Trader will try the new system again for few weeks and again once the system give 1-2 loss making trades , the system will be dumped and search for “next best trading system or trading indicator” will begin and the same never ending cycle will keep going on and on.
To stop falling in trap of such vicious cycle, Trader need to let go of the thought there is a “Holy Grail” system or a fool proof trading method which will win 100% of time. “Holy Grail” system has never exited till date and it will never exit. Now when u try to explain this to trader, 50% still do not believe me.
I can sense them thinking “Just because Bramesh has not found the  100% fool proof system does not mean I will not find it, I am not a Quitter ” Have you ever been in such situation, I bet most of readers who are reading this must have gone through this process.

Many traders think this way is because they fail to understand the fundamental on What drive the stock prices up or down.Let me explain this

If I ask the following question to trader:

  • Why Wock Pharma went down 20% in a day.
  • Why Nifty is is crashing every day.
  • Why Nifty is so volatile today
Popular reasons traders will give for the stocks or markets moving are “The news” or “Some  announcement from company” or “Markets are manipulated anything can happen “, but the truth is the markets or stock do not move because of any of these reasons. These things can be factors but they are not the reason the market moves.The market moves because of simple economic principal of Supply and Demand. When FII’s,DII’s,HNI and other big traders think stock or market is cheap they will bid higher making it move up and when they think its expensive they bid the price lower and market goes down.
News Announcement like Fed Policy, RBI Policy, New Government getting elected or Fundamentals of economy like GDP growth rate, IIP data  do not make the price move up or down, but they do have the power to change the minds of the traders who do move the market.
Let me elaborate with an example, Consider Trader X is thinking of Buying  Nifty Futures because he think RBI will cut rates and market participants on hearing the announcement will take prices further up. Now Suppose RBI came out with no rate cut announcement which is negative, this news has power to change Trader X mind and he think Nifty Future  is expensive. So Instead of Buying more he goes out and Short Nifty futures. If enough number traders aggress with MR X , price of Nifty future will further go down.So The announcement did not send price down! The traders who trade the market did because they interpreted the announcement as negative and started selling.
It is this same reason why the system that is “Fool Proof”, “100%”  every time does not exist and never will. For a trading system to be 100% correct and every trade be a winner, the system would have to know exactly what every other trader in the market was doing. The trading system would have to know exactly who was doing what, where exactly they were entering the market, how much they were trading and where they were exiting. Obviously this is impossible and is the reason why no matter how good a trader or system may be, there will always be times when losses are incurred.
The good news is that you can develop or learn  a solid trading system that keeps the odds tilted in your favor . You can find trading systems out there that will yield some results, you just have to accept that nothing is perfect and temper down your expectation of 100% accuracy.

20 thoughts on “Finding a 100 Percent Accurate Trading System

  1. nifty2015

    100% ACCURATE SYSTEM

    A: follow the price pattern and then Oscillators
    B: In trending market Oscillators fail
    C: Follow Bramesh Sirs new year resolution

  2. jamwalr

    Every Thing 100% correct….No need to over analyse or over react.. A good trading system will definitely see you thru thick and thin…Good thing is …with new discount brokerage plans and good money /risk management techniques, it is possible to earn huge returns in stock futures also… Issue is that people lose not because their trading system is not perfect but owing to the fact that they seldom adhere to the rules of the trading during the trading heat..And this trading discipline comes with experience and practice…May be 3-4 years….Cheers

  3. Mahesh Prasad Sharma

    Dear sir, I shall be thankful if you kindly share your strategy of nifty movement.

  4. Sandeep Patil

    Dear Sir, I am by probation mechanical engg. new for technical analysis & wish to go in depth , now I am using amibroker 5.4 trail version, Across my searching other platforms also came like metastock ,spider etc. willing to buy license of latest version of Amibroker confused about standard & professional version. Please suggest..

  5. RAJMOHAN

    KEEP ON AIMING 100% ACCURATE SYSTEM AND CHANGING THEM IS FUTILE.

    TOO MUCH ANALYSIS WILL LEAD TO PARALYSIS

    TRADING SYSTEM THAT WORKS PROFITABLY FOR LONGER DURATION – MIN 1 YEAR IS IDEAL DEPENDING ON COMFORT LEVEL OF TRADERS

    ALL SUCCESSFUL TRADERS ARE NEVER 100% ACCURATE
    ALL UNSUCCESSFUL TRADERS ARE NEVER 100% WRONG.

    I BELIEVE IN WINNING MINIMUM OF 7 OUT OF 10 BATTLES IN THE TRADING WAR.

    AVGE RETURNS PER MONTH 2 TO 5 % AND ABOVE

  6. Ashis Maji

    “Perfect said”

    Trading is skilled art and varies person to person. At least needs to acquire the skill first. Intraday trading is always best with minimum money and reasonable gain depending one’s own risk appetite with proper stop loss. But not putting stop loss here and there and must be at technical level. Needs to learn and practice how and when to react for entry and exit. Book profits time to time. If required re enter again. Be disciplined, stick and respect your trading system. Profit will come in automatic route.

  7. Bramesh Post author

    Buying software depend on what exactly u need for that..

  8. Shree

    If you don’t mind, i can post on your comment section each day exact movement to be witnessed by NIFTY? I am not saying it will be 100% full proof, but will never make losses.

  9. deepak

    Well, we may never find fool proof trading system. However, if one sticks to couple of option strategies than chances of making good money goes up drastically. Applied Straddle option strategy while buying wockpharma and Century textiles. Rest is history as i made killing in both of the stocks. Also, while going through INVESTOPEDIA, came accross an article, Strangle stratgey works best with oil and gas stocks. Oil n gas stocks reacts hugely on crude prices.

  10. Sandeep Patil

    Very precious logical words sir, keep us guiding. Yours word like candle light in dark night….thank you

    I m planing to buy technical analysis software first time please suggest

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