Trading System: Spot Check and Backtest Spot Check Once you’ve completed the task of writing the rules, it’s time for an informal check against some price charts in the market you are going to be trading, just to see...
Latest Posts
Sizing and Exit
Trading System: Sizing and Exit Sizing The detail of position sizing was covered in the previous module on money management. The most important thing you can do is to preserve your trading capital, so plan that you do not put...
Trading System The Entry
Trading System: The Entry Entry Strategy – is about when and at which point you will enter a trade. It is important to get timing right while keeping losses small even if the trade fails to progress as planned. Many...
The Concept and Rules
The Concept The previous modules have discussed at length market action, and you’ve probably been attracted to some of the concepts expressed. Now is the time to consider which of them appeal to you and seem to make the...
Introduction: The Approach
Module 12 – How to Build a Trading System Introduction Developing a trading system is both a science and an art. All successful traders have a consistent method of trading, no matter if it’s trend following, countertrend...
Contracts for Difference: The Basics
Contracts for Difference: The Basics The array of contracts for difference providers, stockbrokers and futures traders, all competing to offer similar products, but with different charges, commissions and account conditions can...
Section 5.1 – Zones of Support & Resistance – Price/Volume Relationships, Lesson 5
Price/Volume Relationships In lesson 4 we discussed the elasticity of markets. We also looked at the dangers associated with trading break-outs. If you are unfamiliar with these concepts you will find more information here:...
Section 4.1 – Market Myths – The Moving Average, Lesson 4
In lesson 3 we discussed the importance of trends and how to recognise them. We also looked at pivot points or turning points in trends. If you are unfamiliar with these concepts check out lesson 3. Let’s start by taking a...
Section 3.1 – Trends & Pivot Points, Lesson 3
In Section 2 we discussed the four stages of the markets and why they occur. It is important to be able to recognise which phase the market is in so that we can form an opinion. If you are unfamiliar with the concept of the four...
Section 2.1 – Reading the Market, Lesson 2
Trading is a process that is best carried out in the same way every time otherwise results will be erratic. Just as the croupier in a casino always deals the same way to maintain the odds in favour of the house, the best traders...