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trendtraderjse

Trading System

Updated: Feb 27, 2021

Find a trading system (Google one) ; system = a set of rules, nothing fancy; what to buy, how much to buy, when to exit for both profitable & losing trades.





Study the system, see how it works. Test it on a demo account, if you're a bit experienced it's easy to back-test it.


If it's profitable, Check if you're emotionally ready to trade using it, this is important to ensure that you have the discipline to stick to it. Try it in 10, 50, and 100 trades. Check the numbers:


  1. Win rate

  2. Win size

More wins than losses; < 50% win rate can still be profitable if your profits are > 2-3 times your losses. Large win than losses.


Just like that, you have a winning system. Tweak it wherever it needs to be tweaked. Use it with discipline, sit & watch your equity grows.




There will be draw downs, part of the game can't run away from them, but you won't be fazed. You know your system has an edge, so this too shall pass. Each loss brings you closer to your large win which will cover most of your tiny losses.


We have created a Systematic Trend Following Cheat Sheet that you can use to trade various markets: https://gum.co/FJRNl


And if you're wondering if trading can be taught, check this video. Get the book on Amazon: https://amzn.to/3aEHLvV




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