What is a Trading System ?

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What is a Trading System ?

Post by jesse »

Thanks so much to Tyler for setting up this forum and inviting me to contribute to it. I’m a novice compared to Tyler and Fibo so if you are very experienced i may not have a lot to offer but if you are just starting out I hope that you can learn something and avoid some mistakes. I’m going to be using this forum to share the way I trade as well as offering market analysis and I hope you find some value in it.

Trading is primarily an exercise in patience and discipline. The process of becoming a good trader is developing and implementing a system that you trust more than yourself to make decisions about market conditions, especially in times of volatility. Although I have a strong interest in macroeconomics and fundamentals in regards to long term investing I trade crypto purely on technical analysis. I often know nothing about the assets that I am trading and I rely on a trading system to tell me when to buy and when to sell. If you have ever fomo’ed into an asset when it was pumping or panic sold a bottom you know why you need a trading system … Humans are conditioned to have a herd mentality and that behavior is what drives markets. The way you override your emotional response is to to create a set of rules for yourself and then develop the discipline to follow those rules no matter what.

Creating the rules that make up your trading system is a process … you can use someone else’s system, but even then you must determine which assets to trade, what time frames to trade them on and iron out the nuances of how to apply it. Rather than attempting to eliminate your own bias and intuition entirely the best approach is to use them to create your own rules about how you want to trade. Start simple with an existing system and develop the objectivity and discipline to follow it, then gradually modify it to suit your own needs making sure to always apply new rules consistently.
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Where can I can find reading materials for Trading System (or examples)?

Post by HowD »

Hi Jesse,

Thank you for your article on trading system.

I have been trying to develop a 'Trading system' for some time now. But it is not working. I tried google to find reading materials for developing a trading system but I could not find any.

It would be helpful if you can send some links for the reading material/guide for developing a "Trading System" or an example of a trading system which I can use as a reference to develop my own system.

Thank you.

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