1. Trading Systems: Introduction
  2. Trading Systems: What Is A Trading System?
  3. Trading Systems: Designing Your System - Part 1
  4. Trading Systems: Designing Your System - Part 2
  5. Trading Systems: Constructing A System
  6. Trading Systems: Troubleshooting And Optimization
  7. Trading Systems: Conclusion



Let's recap what we've learned from this tutorial:

  • A trading system is a group of specific rules, or parameters, that determines an entry or exit point for a given equity.
  • Combinations of technical analysis indicators and oscillators are often used to create the rules used in trading systems.
  • Once they are created and working properly, trading systems can take all emotion out of trading and save you a lot of time; however, they can be difficult and time consuming to construct and perfect.
  • Many trading systems have proven to be effective over time. But some of the trading systems sold on the market have been scams. Most scams can be detected by looking at the promises they make - if it sounds too good to be true, it probably is!
  • Trading in the currency market can offer more liquidity and lower transaction costs, but also more volatility and a limited selection. Equity markets have limited liquidity and high transaction costs, but a more diversified nature. The futures market - although typically reserved for advanced traders - offers high leverage and potential profits, but is more difficult to tame with a trading system.
  • There are two main types of trading systems: those that follow the trend and those that go against the trend. Although similar in terms of risk, they offer different ways of profiting.
  • Your trading system must make money, limit risk, be composed of stable parameters and have a stable time series.
  • Software can help you speed up system development and automate trading.
  • The six steps involved in creating an effective trading system include (1) set up, (2) design, (3) decision making, (4) practice, (5) repeat and (6) trade.
  • Optimization should be avoided in most circumstances.
  • The four steps in the process used to troubleshoot any problems with your trading system include (1) identifying the problem, (2) evaluating the problem, (3) considering the alternatives, and (4) implementing a solution.

http://www.metaquotes.net - Free technical analysis software.

http://www.tradestation.com - Most popular paid automated trading platform.

http://www.esignal.com - Paid data source.

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