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.

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.

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