Having researched and designed your trading system by working through the steps we have discussed so far it is now time to back-test your ideas to see if the system ‘works. Research is conducted via back-testing concepts against available historical data. This is where your programming skills are required, unless you wish to conduct your…

Having determined the objectives for your trading system and with a thorough understanding of what it is you want to achieve with your ‘edge’ it is now time to look at the entry and exit signals you will use. Specifying exit signals is a must! Too many discretionary traders and those lacking a disciplined approach…

Having set out on the path of constructing your own trading system, it is now time to consider the aims and objectives of your system. In other words, what you are really doing, and why you are doing it. If you don’t specify what you want your edge to deliver, how will you know when…

In last week’s blog we looked at the mindset required to begin designing and building your own trading system. This week we take a look at the tools and resources required to undertake the journey. To design your own system with an ‘edge’ over the market certain basic resources will be required. These resources include…

Over the next few weeks I would like to focus on the steps and processes involved in designing a trading system. Whilst by no means an exhaustive list, it will provide an insight into the process for those interested in designing their own trading system and for those who are weighing up whether to develop…

A universal ‘formula’ exists when trading and investing that needs to be understood and positioned in the trader’s psyche to continue to be successful on an ongoing basis. Anybody can place a few profitable trades, randomness will take care of that. But to continue to be successful on an ongoing basis requires more than the…