Before getting to the development of a system we need to understand what is the main structure of trading. This structure is basic framework of how trading should work ideally. One has to keep in mind that most important part of trading is exiting or closing a trade. WHY? Because EXITS are what makes money,Continue reading “Trading Framework”
Tag Archives: Trading system
Types Of System
There are basically 4 types of System in use. 1. MEAN REVERSION A mean reversion system, works under the assumption that the current trend is strong and the price at present is deviating away from the mean price (average) and in the given period of the time the prices will revert to its mean. TheContinue reading “Types Of System”
All You Need To Know About Stock Trading Systems (Part-2)
PART – 2 Continuing with the previous post (PART – 1), few more things to keep in mind about the systems are as follows: 6. Position Sizing This in fact is one of the most crucial element of the system designing process. Without the right position sizing the risk cannot be controlled and you cannotContinue reading “All You Need To Know About Stock Trading Systems (Part-2)”
The Mechanical Trader 