Observations:

1. Rule based trading is quite good and efficient

2. In Rule based trading emotions can’t control you and from that discipline and
control will add into your trading
3. An edge will come in the market when you stick to one trading system

Learnings:
1. While back testing focus on 2 things
a. Risk to Reward Ratio
b. Winning Percentage
2. As, sometimes winning percentage is 30-40% but R2R is 1:3 or max so it’s a quit
good strategy
3. When you back test strategy and you found that, yes, it’s quiet good strategy
then do not start with big capital. Start with small, Learn and then increase your
capital
4. System hopping is very bad thing, as a beginner we want to be right every time
and when we fail in this and face some loss in a row we leave and start finding
another strategy.
5. It’s bad, very bad, know your hit rate and understand how max losing streak you
can face.
6. If strategy is not efficient its failed in back testing only, but if you back test and
strategy work very well then do not leave, just because you face loss in a row
7. Back test your strategy as much as you can before applying into the live market

Conclusion:
1. Stop system hopping and stick to one trading system and know system inside
out
2. Trading is not rocket science, Simple things works
3. Backtest, Backtest and Backtest
4. Focus on Emotional Discipline, Risk Management and One strategy and see the
change in your trading

Again, Simple things works :)