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Writer's pictureShane Smoleny

The Significance of Precisely Following a Trading System

Introduction:

In the world of trading systems, there exists a secret ingredient for success: unwavering dedication to following the system's design. Traders often have their own unique preferences and styles, but strict adherence to a trading system is crucial for unlocking optimal outcomes. In this article, we will delve into the true importance of adhering to the S&P Polar R Squared trading system with precise accuracy. Specifically, we will explore the significance of trading the exact S&P Futures symbol within this system and the benefits it offers.



The Specificity of S&P Futures Symbol:


When it comes to trading the S&P index, there are numerous symbols that traders can use as substitutes. These range from options, volatility products, and ETFs like SPY and QQQ to other futures contracts such as NASDAQ, Russell, and Dow. However, within the Polar R Squared system, there is a secret sauce: trading the exact S&P Futures symbol. This detail is not to be overlooked, as it plays a crucial role in the system's effectiveness. Futures contracts have their own unique behavior and offer specific opportunities. By directly engaging with the S&P Futures symbol, traders align themselves with the system's intended strategy and significantly increase the likelihood of achieving favorable results. While computers naturally follow directions, humans may find disciplined adherence more challenging. Recognizing the importance of disciplined adherence is key to fully embracing the benefits of the system.


Specific Entry and Exit Times:


The S&P Polar R Squared system operates on a specific rhythm, with predetermined entry and exit times set at 4:00 PM Eastern Time. Trades are exited when the signal ends, regardless of whether they are ahead or behind. This feature, known as a time stop, offers a unique advantage, particularly for busy traders. By checking for signals at the 4:00 PM close, traders can execute trades without the need for constant monitoring or the exhausting task of jumping in and out of trades throughout the day. This practical and efficient approach saves traders from the fatigue of constant activity and allows for better focus on other aspects of trading.


Picking and Choosing Trades Does Not Work:

The temptation to cherry-pick trades in an attempt to maximize profits is ever-present, but it often leads to disappointment. Handpicking trades or engaging in a mix-and-match approach is akin to walking into a disaster. In the world of systematic trading, a common saying is "when you try to pick and choose, you lose." The market is highly unpredictable, and even the most logical trade setups can fail, while seemingly unusual ones can succeed. To replicate the system's results, it is essential to embrace discipline, meticulously follow the rules, and take every trade without exceptions. Consistent results are achieved by relying on a systematic approach rather than attempting to predict specific trade outcomes.


Tailored Stops for Effective Trading:


The S&P Polar R Squared system offers two distinct versions: the Polar R Squared Legacy and the Polar R Squared Turbo. Each version caters to a different trading approach, with the Legacy version trading less frequently and employing wider stops, while the Turbo version trades more frequently with tighter stops. It is important to apply the appropriate stops for each version and not mix them up. Using wide stops for the Turbo version or tight stops for the Legacy version would be ineffective. To fully harness the system's potential, traders must align themselves with the chosen version's parameters and strictly adhere to the system's rules, using the correct symbol. By doing so, traders unlock the true essence of the system, allowing tailored stops to protect against adverse market movements and preserve capital.


Remaining in Trades Until Market Close:


In the world of trading, the Polar R Squared system stands out for its unique approach to risk control. While many trading systems incorporate profit targets and trailing stops, the Polar R Squared system takes a different path. It emphasizes the importance of staying in trades until the next market close, particularly when there is a significant profit potential.


It is common for traders to feel anxious and eager to take early profits. However, with the Polar R Squared system, this impatience can be detrimental. The system's effectiveness lies in allowing trades to run until the market close, enabling the opportunity to maximize gains. Through experimentation and analysis, it has been observed that none of the alternative approaches, such as profit targets or trailing stops, perform as well as simply leaving the trades untouched.


To illustrate the effectiveness of this strategy, let's take a look at some real-life examples of live trades executed using the Polar R Squared Turbo version. One notable instance occurred on St. Patrick's Day in 2023, where we opted to let the profits run big. The outcome was akin to finding a “pot of gold” at the end of the rainbow.





The Pitfalls of Deviation:


Deviation from the designated symbol within the system is like entering treacherous waters. The system's design and parameters are carefully crafted around the S&P Futures symbol, making it essential for the system's functionality and effectiveness. To achieve success, traders must precisely follow the trading system, ensuring that every aspect works harmoniously with the designated symbol.


Conclusion:


In the world of trading, following a trading system with impeccable precision is the key to success. The S&P Polar R Squared system emphasizes the significance of trading the exact S&P Futures symbol. By doing so, traders align themselves with the system's strategy, capture the true essence of price actions, and flawlessly execute tailored stops. Straying from the designated symbol is akin to attempting a difficult feat while ill-prepared. To unlock the full potential of trading endeavors, embracing discipline, following the system diligently, and harmonizing every aspect with the designated symbol are paramount. In the marvelous art of trading, precision is the key that unlocks the door to consistency and success.



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