In our desire to be right, many of us have “perfectionist tendencies”.
But this can be quite harmful to the system development process. If, instead of trading your system, you are constantly fiddling with it in search for the “Holy Grail” then you are probably leaving a lot of money on the table.
As trader we suffer from recency bias; that is our most recent trade’s impact our thought processes. This means if we tend to alter our system reactively and it ends up being curve fitted to the most recent market conditions.
So adopt a structured process to make changes. Trade your system for a month and then make one or two small changes…read more