The Complexity Curve

It's not really a curve at all. It's a straight line. The more complexity you add to your trading -- by looking at more time frames, indicators, currency pairs, systems, at all hours of the day -- the more difficult it becomes to actually implement a profitable trading strategy.

There is a big difference in trading between keeping things simple and being simplistic. Simple means that you specialize in one type of trading, on one time frame, on just a few currency pairs, and that you keep a normal human trading schedule (remember, even Wall Street currency traders work in shift -- no one stays up for 24 hours a day to trade). Simplistic means that you expect to make money without doing any backtesting or homework or planning of any kind (not possible).

Posted by Rob on May 16, 2007 10:04 AM | Permalink

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