As you grow, there are always holes in your portfolio you can plug. There is market behaviors and scenarios that you could dream up that your portfolio may not do brilliantly well in. Thus, you could create a system to address that. There’s always the benefit of adding more, but there is a diminishing benefit. Adding one system is way better than no system, and two systems are way better than one system, but 11 systems are not way better than 10. But the threshold becomes how well you can execute the systems without making mistakes?
Therefore, if you get so many systems that you start tripping over yourself, making mistakes, missing signals, dropping trades, or executing poorly, you have too many systems.
If you’re new to systematic trading, start with my guide to trading systems.
That’s probably, for most people, the thing to watch. You’ve got to execute well. I found myself in a situation where my lifestyle and the number of systems I was trading were not compatible, and I started making mistakes, so I paired and reduced the complexity. Therefore, it’s important to monitor and be honest about yourself.
Practical details like this are what I walk through step by step with members of the Trader Success System.
More on Running a Portfolio of Systems
- How to Build a Portfolio of Trading Systems
- When Does Adding a System Become Too Much?
- How to Decide Which System to Use Each Day
- How to Decide When to Trade With Each Trading System
- When Should I Switch Off a System?
- Are Your Trading System Rules Still Working?
- The Most Effective Way to Improve Your Trading System’s Performance
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