A trading system is a precise set of rules that automatically define market entries and exits. Since the rules are explicit and pre-defined, it makes such a trading system statistically testable. In other words, we can figure out how the system performed in the past and how it would perform in the future with reasonable confidence.
This book explains exactly how you can build a winning trading system for yourself:
What a trading system is
Why you need a trading system
How to develop a trading system step-by-step, with examples: Trade entry logic, determination of appropriate exits, risk management controls, profit targets
How to test the forecast the power and robustness of your trading system
How to periodically adapt your trading system to changing market conditions
Position sizing examples: Money management versus risk management.
Systematic portfolio trading: How to combine a number of trading systems into an effective portfolio of systems for trading different markets
Step-by-step analysis of popular trading systems - the Bollinger Band System and the Triangle System
Ideas and practical tips for building your own trading systems.
This book will help you trade sure-footedly, even in treacherous market waters, and profit through systematic trading.
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