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| Trading System Source |
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For the past twenty years the principals of tradingsystemsource.com have had the opportunity to be immersed in all aspects of the trading world, from being clients to registered brokers, from analysts to system developers, and from desk traders to fund managers. These experiences have allowed us to identify the components and characteristics that make successful traders and programs. In order to help pass on our experience to our members and help them become successful system traders, we have created a list of questions and detailed answers that should help in the development, search, evaluation and implementation of mechanical trading systems. To Submit a Question Additionally, we encourage our members to submit new questions for us to respond to. We will post approved questions along with our detailed answer. To Submit a Question click here Ask A Question HOW DOES A TRADING SYSTEM WORK? In order to understand how a trading system works, I am going to take you through a day in the life of a professional money manager who uses a proprietary computerized mechanical trend trading system. His strategies employ multiple systems that trade in multiple time-frames. July 14, 2004 Click here to view complete answer. WHAT ARE THE BENEFITS OF A TRADING SYSTEM? Over the last 20 years I have had the opportunity to work with many clients, system developers, traders, brokers and the strategies they employed to trade the markets. From my experience, I have identified some of the characteristics that differentiate the various methods of trade. July 14, 2004 Click here to view complete answer. WHAT MAKES UP A COMPLETE TRADING SYSTEM? A complete trading system contains all the essential elements of trading. A complete trading system automates the entire process of trading, leaving no decisions to the trader. July 14, 2004 Click here to view complete answer. WHO REGULATES DEVELOPERS OF TRADING SYSTEMS? Developers of trading systems do not by law have to be registered or regulated. It is a choice of the individual developer to register or not. July 14, 2004 Click here to view complete answer. WHAT EXACTLY IS A TRADING SYSTEM? A trading system is a plan or a set of rules that allow the user to precisely identify exact entry and exit instructions in one or more markets. A system can use simple to extremely complex formulas. May 28, 2004 Click here to view complete answer. WHAT TYPES OF TRADERS UTILIZE TRADING SYSTEMS? In a Tradingsystemsource.com survey of professional Commodity Trading Advisors (CTA’s), of the almost 400 CTA’s reviewed, 342 used a systematic approach to their trading and only 11 claimed to use discretionary trading. May 28, 2004 Click here to view complete answer. WHAT HAS BEEN RESPONSIBLE FOR THE GROWTH IN THE USE OF TRADING SYSTEMS? Well like many things in this world I would have to say “technology”, and specifically the personal computer. The personal computer has allowed individuals as well as system developers to research trading rules and methodologies to qualify their success. May 28, 2004 Click here to view complete answer. IS A TRADING SYSTEM APPROPRIATE FOR ME? Like any investment an individual should do his own due diligence in deciding whether or not to participate in a financial endeavor. Deciding to use a trading system to make your decisions in the market is no different. May 28, 2004 Click here to view complete answer. WHY USE A TRADING SYSTEM? Most people don’t have the time to perform the required screen watching and daily trading to trade on a discretionary basis. Most successful traders as we have seen with our Click here to view complete answer. |