Once you have designed all of components the strategy, you may then want to test it. In order to test a strategy, you have to test each part by adding it to the strategy one at a time, to see if there is improvement and, if so, how much.
Posts Tagged ‘Trading Strategy’
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Trading Strategy Design – Using Stops
Posted by Taro on June 8th, 2010
The only purpose for using Stops is to protect your capital. They are used either to cut losses or to protect profits. Stops are usually based on some dollar figure rather than a market indicator or price pattern. A characteristic that stops share with exits is they force the strategy out of the market, which [...]
Trading Strategy Design – Using Exits
Posted by Taro on June 8th, 2010
Usually, most trading strategies start with defining a signal to take a position in the market. To design the signal we use set-up and entry which have been described in earlier articles. For the exits, in theory, we may use reversing of signal to define the exit. For example, if you use trend-following strategies and [...]
Trading Strategy Design: Indicators and Price Patterns
Posted by Taro on June 2nd, 2010
Getting to know indicators and price patterns is the next step in designing trading strategy after making decisions on type of market and time frame to trade.
Trading Strategy Design: Choose trading Time Frame
Posted by Taro on June 1st, 2010
After making the decision on what type of market you will trade as I talked about in previous article, you now come to the making decision as what time frame you will trade. This decision is also a important one when you are designing a trading strategy. Firstly, you have to decide decide whether you [...]
Trading Strategy Design: Pick the Market Type
Posted by Taro on May 31st, 2010
In designing a trading strategy, we will start with the big picture and dig deeper into more detailed decisions of the strategy in making decision. In the beginning, we will assess what type of market we want to trade and what kind of trader we want to be. Then, we will end up with how [...]
The Trading Entry
Posted by Taro on May 30th, 2010
In previous article, we talked about the trading set-ups, which is the condition or set of conditions that are necessary prior to considering taking a position in the market. However the set-ups just make you aware that a trade is coming but do not get you in the market. So, what do we need in [...]
The Trading Set-Up
Posted by Taro on May 29th, 2010
The Set-Up is the condition or set of conditions that are necessary prior to considering taking a position in the market. It may be the indicator or set of indicators that tell you to prepare to enter a trade. Set-ups just make you aware that a trade is coming but do not get you in [...]
The Complete Strategy Traders
Posted by Taro on May 27th, 2010
As you may have read, I wrote an article to give you the idea what the strategy traders are. I also wrote another one to let you know a few benefits of strategy trading over other methods of trading. And here, in this article, we are still talking about strategy traders. Actually, it is the [...]
The Benefits of Strategy Trading
Posted by Taro on May 26th, 2010
I wrote earlier article about the strategy traders who trade the strategies. From my point of view, I believe that if traders stick with trading strategies which have been properly back-tested, they can make more money than trading any other way. Making more money is not the only reason that strategy trading is a good [...]
