Trading Systems That Work: Building and Evaluating Effective Trading Systems
Guidelines for Designing and Building a Unique, Powerful, and Profitable Trading SystemSuccessful trading is more than just a series of single, isolated activities, each fighting its own battles in a dog-eat-dog marketplace. It is instead asystem, in which all components work together to ensure that each trade is well protected, easy to implement, and capable of generating a steady stream of low-risk trading returns.Trading Systems That Workshows you how to combine today's best available information and techniques into a simple system that works foryou­­across all markets and market conditions. Look to this clear, step-by-step book for:Guidelines for implementing a consistent money management programPortfolio composition techniques to ensure maximum profit potential­­while minimizing exposure to unnecessary riskStrategies to exercise proper risk management through stop losses, profit objectives, and moreWhether you are a multimillion-dollar institutional investor or an independent trader with a $10,000 account, your trading system­­and your comfort with that system­­will spell the difference between long-term success and failure. LetTrading Systems That Workhelp you design a strategic, well-thought-out trading system, one that puts you in complete charge of your trading fortunes.When it comes to designing a trading system, serious traders don't have time to reinvent the wheel. Instead, they generally incorporate the proven, time-tested systems and techniques of others into their own­­a personalized system that takes into account their trading budget, risk tolerance, action requirements, time horizon, and abilities to accept market- and system-specific anomalies.Trading Systems That Workis the first book to evaluate many of today's most influential techniques and, emphasizing trading software programs TradeStation and Excel, cover all aspects of researching, building, understanding, and evaluating your own trading system.After covering the logic and reasoning that underpin a successful system, international trading consultant and writer Thomas Stridsman uses a set of proven system-building tools, plus his own highly innovative analysis techniques and findings, to provide:Step-by-step techniques for researching and building a mechanical (100% rule-based) trading strategyClear step-by-step techniques to evaluate the true performance of any systemMethods to measure drawdown, both within individual trades and for entire strategiesAll computer coding, along with spreadsheet formulas and equationsOptimal exit techniques regardless of the market or current market conditionsTrading Systems That Workis the book for traders who have taken a few gut-punches, realize the game is not as easy as it seems, and want to pinpoint exactly what it is they need to solve the puzzle. More than just another cookie-cutter book extolling ready-made technical analysis indicators or a foolproof trading system, it instead examines the entire trading process, the importance of fully understanding that process, and the necessity of employing sound, sensible, fixed-fractional money management strategies to consistently profit from that process.Manageable system building protocols, money management and portfolio composition guidelines, basic entry and exit techniques­­Trading Systems That Workshows you how to tie the many different stages and strategic decisions of trading into a unified, profitable system. Whether you are looking to design and use a fast, intraday, market-specific trading system or one that is steady, long-term, and universal, its many valuable insights and innovations will­­once and for all­­put you on the right track to an understandable, profitable methodology.