How to Build a Simple Breakout Trading System in 8 Steps guides you to build a successful trading strategy in 8 basic steps.
File type: PDF
Pages: 34 pages
Introduction
A Trading system is a set of rules that formulates buy and sell signals without any ambiguity or any subjective elements.
PRIMARY AIM:
Manage risk and increase profitability in any market environment.
Optimal levels of risk and reward are accomplished by modifying the different parameters within each rule of the system.
PRINCIPAL BENEFIT of trading with a system: Removal of emotion from trading
Systematical trader will, for instance, not place an excessively high risk trade due to frustration from a prior losing trade.
Steps to build a trading system from scratch:
1. Observation
2. Hypothesis
3. Measuring the Hypothesis
4. Selecting the Time Frame 5. Developing the Strategy 6. Entry Rules
7. Exit Rules
8. Position Size and Risk Management