A Trading System is a trading method that is based on a series of specific rules and conditions to determine whether to buy or sell a financial asset at a specific price and time.
What is a Trading System?
A Trading System is a trading method that is based on a set of specific rules and conditions to determine whether to buy or sell a financial asset at a specific price and time. Trading systems are usually based on a series of technical analysis tools and conditions for entering or closing trade positions. Other trading systems, may be based on fundamental analysis and trade the news, or even trade the inefficiencies between different financial markets (arbitrage trade systems).
Key Components of a Proper Trading System
(1) Trend Identification and Confirmation (in at least 2 timeframes)
(2) Complete Order Creation (enter-price, take profit, stop-loss)
(3) Money-Management Sub-System (additional rules)
(4) Positive and Proven Past-Performance
More: » Compare Expert Advisors | » Compare Trading Platforms | » Compare Fx Brokers