System Theory (TheWolf)

There is beauty in chasing a goal a vision and seeing it come to fruition slowly. That vision for me is managing prop firms/investors capital and scaling constantly and also teaching the methodology of systematic trading and automating portfolios to trade prop firms and big capital and also teaching that on youtube is part of that vision Thats why i created this channel here where i provide free education on how to find an edge and how to trade the way i trade! @thesystemtheory" target="_blank" rel="nofollow noopener">youtube.com/@thesystemtheo…

@larkfunding eas allowed?

We have the EASIEST challenges in the industry. ✅ No minimum trading days ✅ No trailing drawdown ✅ No consistency rules ✅ No news restrictions We don't have any of the nonsense that most prop firms have introduced.

@kieran__duff whats your process at identifying a strategy that decays? do you have like fixed rules for that?

Strategy decay is the silent killer of systematic books. It looks like normal drawdown until it isn't. Usually by then the regime has already shifted for good. The shops that survive are the ones who kill strategies before they break and replace with new strategies.

@JoachimMo1985 Impressive man whats your max DD on this?

Time for some weekend bragging: This is my equity curve since I started my systematic trading using RealTest in live trading in Q4 2023. Before I was grinding with python for a year. It took off when I applied the right methods with the right tools (RealTest) and data (Norgate).

@JoachimMo1985 mean reversion? you dont use like a hard cap sl though in case of a crash for example to protect you from that left tail? a stop loss that your system never touches basically just sits there as a protection (thats how i do it currently with my MV

"Why I don't use stops" in one picture. Tanked -19% after my entry, rested for one day, now I am green again.

@mathdhdh agreed!

@TheWolf534 a stable in my tools too so useful

There are so many paths a strategy/portfolio of stratgies can take. You backtest and you get all these stats about your portfolio and you think thats it but no thats a perfect path. Bakctest is path DEPENDED. Its a perfect path but the future is not a straight path what if the trades come in different order? what if you miss some trades ? what if a strategy you made decayed and its losing money? Never trust the backtest and always size up for atleast a 2.5x DD more than what you see so if your target DD is 10% max your backtest ideally should show 4.5% historical DD and thats your risk. Monte carlo proves that. It is a computerized mathematical technique that predicts the probability of various outcomes by running thousands of random trials, accounting for risk and uncertainty in unpredictable systems. It is used to model scenarios in finance, engineering, and project management where variables are uncertain, providing a range of possible results rather than a single "best guess" These are the tools i use to deploy my systems correctly on prop firms.

@franktrades01 @iBenza1k just look for a simple breakout system 2 parameters max btc has an upside bias so finding a long only system is pretty easy

@TheWolf534 @iBenza1k How were you able to code a long only strategy on BITCOIN, I’ve tried to code one but I’m always flopping using A.I could you point me in the right direction to see where I’m going wrong

Systematic trading is the ONLY way to long term profitability in this game. I have been trading for the past 6 years now and i tried and tested every single system you can think of. 99.9% of gurus dont even have an edge they just cycle accounts. I am not saying thats bad if that makes them money but it doesnt make sense to learn from someone that simply has no edge and gambles right? If you want to get profitable and actually make money long term study systematic trading-rule based trading.

@iBenza1k start learning the basic principles of combining uncorrelated systems ..etc and use ai to code it

@TheWolf534 As a novice, how should I go about building, testing, and implementing a similar system?

@DjangoGlobal @isaacthequach more strict DDs and rules though

@TheWolf534 @isaacthequach But they struggle to pay , futures dont hesitate

FOREX > FUTURES Imagine having “Payout Caps” 😂

@M19HAU mql5 calendar api and i made it to close only on the news ftmo forbids

@TheWolf534 Where are you pulling news data from for the ea?

Another portfolio done today for my FTMO accounts. This one is specifically made for the standard account type. News close included. EOD close included! No over the weekend filters. Performance drops but we still adapt and make money and thats what matters! 4 strategies so far and we will scale to 6 strategies on this account next week! Either you ADAPT or you stay behind. Its up to you to make it happen!

@kieran__duff thanks man!

@TheWolf534 Great work man!

@mathdhdh 💪

@TheWolf534 Adapt and overcome!

@BostonRobTrades nice man all on NQ? Yep mean reversion will really help smooth out that curve

@TheWolf534 thank you sir, rn 5 of the 6 on Darwin The overnight strat needs some work then it will be all 6 then I will be adding Mean Reversion strats

STS = Boston Rob's Solo Fund Verified on Darwin (PAZB) and Topstep 6 Intraday strategies combined into 1 portfolio All strategies built and verified using AI Agents Built and connected a 24/7 Trading Server that executes all my trades, I can ssh into anytime to control or monitor My mission now is to scale up funding and increase monthly income from prop firms: - Portfolio on avg earns $1,000/m per account. -Darwin earns me $100/m with 60k in allocations - Built $3,000 cushion on topstep in 3 months, will make withdrawals of anything over that cushion - Earn over 100k in allocations before reaching gold status on Darwinex If you are a recent follower , this account is for documenting my progress over time and sharing info that can help other beginners out there find profitability. My goal is to build up enough funding that I can pay all my bills so that my entire 9-5 check goes to savings & Investing into my retirement account (which is ran by strategies too). I will check in again May 1'st to post April's exciting stats - Back to the lab!

@mikeyy_digital i would say study strategies from the past that were traded from famous funds and recreate them

@TheWolf534 So breakouts & trendfollowing, then building parameters upon that for gold? Any books/videos going into depth about this? Have pretty much everything ready except the strategy creation

A lot of traders are obsessed with high win rate strategies. Not because they’re better… but because they’re easier to deal with psychologically. Winning often feels good. It builds confidence. It reduces emotional stress. But high win rate ≠ profitable. The goat of trading Jim Simons was trading mostly mean reversion/short-term statistical patterns/inefficiencies/micro-patterns Below is a mean reversion portfolio I run, focused on indices. Mean reversion is one of the most consistent edges in the market especially in range-bound conditions, where price oscillates between extremes. The concept behind mean reversion is simple: When price deviates too far from its average value, it tends to revert back. Why? Because markets are driven by: overreaction short-term imbalance emotional positioning And those extremes don’t sustain. This is where most traders get it wrong. They chase moves after the expansion. They buy when price is already extended. They sell when the move is exhausted. That’s not edge. That’s participation in the crowd. Mean reversion does the opposite. It looks for: exhaustion overextension liquidity events And positions for the snap back. But here’s the part most people miss: Mean reversion does NOT work in all conditions. When the market is trending strongly, what looks “overextended” can keep going much further. That’s why combining strategies is critical. Mean reversion → performs in ranges Breakout / trend systems → perform in directional markets Together, they allow you to: adapt to different regimes smooth your equity curve reduce dependency on one condition This is how professionals think. Not: “What’s the best strategy?” But: “How do I cover all market environments?” The edge isn’t just the setup. It’s: understanding when it works understanding when it doesn’t and combining systems accordingly At its core, the logic remains simple: When price overextends… it tends to revert. The key is knowing when that actually applies. Below is a very simple portfolio using this concept mean reversion combined with breakouts!

@mikeyy_digital you start with a hypothesis first to avoid overfitting For example gold has an upside bias for decades now So look for a way to capture that upside momentum consistently

@TheWolf534 How do you go about creating profitable systematic strategies?

@mathdhdh Yep its a lot harder and less reliable in my opinion. For intraday i trade mostly momentum/breakout stuff and simply close EOD

@TheWolf534 i find it very hard to find mean reversion on the lower timeframes