How many follow System trading?

Hi Community,

I have been trading discretionary for a few years now, although it has been decent, the process is quite tiring and i have to actively track the markets most of the time. I am trying to build a system so that i can deploy it and save some time. And focus more on following the system without getting emotions in between.

Is anyone here following a system rigorously? If so can you share your insights, if its works? Do you have to manually intervene with the system? or update it regularly? or once you have gained trust you can just follow it? (i am not asking for strategies, just the insights based on your experience) Any platforms that you guys use to implement the same?

For the past few weeks i have been trying to follow Short Strangle Strategy on paper trading (just purely based on indicator rules). I am using streak platform to do this. The backtest has been good, i will try and post the paper trade results daily here and track the progress so that fellow users in the community can pitch in their ideas and inputs as well about systematic trading.

This is the backtested strategy that I have -

And below is the snapshot of today’s trade -

Today was a perfect day for the Strangle as the market ended near the same price i entered. So all of the decay was captured.

If any one here follows any particular system please share your thoughts and processes! Hopefully this will help me and new traders that want to start trading systematically (and not based on emotions)

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This is good. Even I had deployed short strangle for paper trading and my entry conditions were time-based. For the past 30 days, my overall net result was in profit even in such volatile markets.

I think we can come here and post our results at the end of the day to see how good this strategy actually is. And I’m also confident that this discussion can help other fellow traders learn.

yes, but need a tested edge.

Never, even if i feel like it or know something will happen. Just dont.

I don’t know if i have to, but i have. As i learn more about my system and improve my systematic trading skills, i have tried to improve my system multiple times. So far it seems to have helped. There is risk here too in over optimization, so need to test and manage.

yes i aim to follow it forever ( As long as it works). But if i get a new insight, i do my backtests, look at it in different ways and then decide whether or not to push the changes. Have done this a few times. I try not to make wholesale changes, its more iterative. Changes are done only to improve things, not as a reaction to short/medium term difficult environments, although difficult times can often push us into discovering new insights.

My own tools over api. KiteConnect works well.

Also, once you have a system working and are happy with it, try to diversify into different uncorrelated systems - one by one. That can reduce risk very effectively - much more effective than any improvement we can hope to do to a reasonably well tuned system. ie instead of continuously trying to improve your main system, try to add another system.


4th July 2023 Result - I kept my SL for both legs as 25% from the selling price. I think If I had kept the position open till square off, the day would have ended in profit.

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@SpacemanSpiff appreciate your detailed answer! :slight_smile:

thinking we know something will happen, NOT acting on that feeling is something i need to work on!

makes sense. its important to just try and see if something can be made better in the overall strategy, which improves the efficacy of it. will try to not change it based on a reaction to short/medium market movements.

nice, i don’t have a tech background so trying to find platforms that will help a rookie like me to still follow a system. :smiley:

yess this is something i have observed too. hence i am trying to see if i can do something related to commodities or currency markets! Hopefully ill find something in that space too :crossed_fingers:

What kind of segments are you trading in actively? and what segments do you trade for diversifying risk?

also, do you think a ‘well-tested-strategy’ needs a lot of complexity and indicators? or a simple logic-based condition with common indicators, with promising backtested results will work fine as well

4th July 2023
for me a slight loss for today as both side sharp movement happened, where one SL was hit.

thanks for pitching in @Chirayu08

any other strategy that you are following aside from strangle? whats your experience been with systematic trading, will like to hear your thoughts!

Couple of systems in Equity. Going to add few more.
I have not yet traded currency/commodities but will try in Future.
We can also diversify in Timeframes and system styles.

Simple things work. My systems at its core have very basic rules that brings out most of the edge, Beyond that i do finetune things and that adds some complexity. But can start with simple stuff, i wont trade something that has say 5-10 conditions before edge shows up. But I may add 5-10 refinements after that based on how market responds. This also depends on sample size, with low sample size probably its best not to add complexity.

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currently just backtesting and paper trading common strategies such as strangle/straddle/iron condor. Also trying to create swing trading strategies for equity stocks. How about you?

thats sounds good! best of luck

like i mentioned in the thread above, along with common strategies, I am trying to build something around mcx and cds segment as well. lets see how it goes

5th July 2023

today profit of aprx 1200

5th July 2023 :- I think the chances of profit increase once you come closer to the expiry due to the theta. Also if we consider brokerage, today was a loss too. :melting_face:

anyway that is how we learn :smiley:

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Paisa Hi GIF - Paisa Hi Hoga - Discover & Share GIFs

6th July 2023

Today i did a simple change, created the same strategy on 15mins instead of 5mins. and deployed both of them together. 15mins strategy gave better results. Like it is said, trading on a higher timeframe is better since noise is less and confirmation of indicator is also relatively better when compared to lower timeframe.

“option strategy afsfsf” is on 15mins timeframe which gave profit of 2700 and the other on 5mins gave profit of approx 800

Strategy link of the 15mins backtest if anyone wants to check -

how was the expiry day for other traders?

6th July 2023 I wanted to see how the strategy behaves on expiry so didn’t make any changes, even kept the SL at 25% (which is very low when kept on the OTM prices on expiry) due to which SL got triggered very quickly.

I am thinking of making a few changes for tomorrow and also thinking of doing some swing trading for equity. Let’s see how that goes.

Whatever may be your strategy i suggest an insightful simple system in my thread which i believe even day-jobers can make it happen:

7 July 2023

market was quite volatile today so almost breakeven in both strategies.

7th July 2023 -

Bhari Nuksaan Ho Gaya Humara Akhandanand Tripathi GIF - Bhari Nuksaan Ho Gaya Humara Akhandanand Tripathi Kaleen Bhaiya - Discover & Share GIFs

10th July 2023

The benefit of writing options when the market is range bound.

10th July 2023

for me, initially in the start of upmove, CE hit SL. and then after that a swift downmove came, so PE SL was also hit.

sticking to the system is important. :crossed_fingers: lets see how the week turns out.