|
Many traders have come across advertisements for trading systems that promise to generate profitable buy or sell signals for triple-digit annual returns. Of course, savvy traders know that these trading systems wouldn't be sold for a few hundred dollars if they were capable of consistently generating such high returns.
Trading systems seem to work
On the other hand, there's no doubt that some trading systems are tremendously successful. The American hedge fund Renaissance Technologies LLC famously generated a 71.8 percent annual return between 1994 and mid-2014 using quantitative trading systems. And, there's no doubt that they aren't the only firm using such technologies.
The goal of this tutorial is to introduce you to trading systems, explore how they are built, and ultimately provide you with the knowledge you need to start experimenting on your own.
In the next section, we will define what trading systems are, outline their components, and discuss their advantages and disadvantages.
Trading Systems: What Is A Trading System?
-
Trading
Trading Systems: Run With The Herd Or Be A Lone Wolf?
Find out if taking the path less traveled will work in your favor - or against it. -
Insights
Inside National Payment Systems
Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible. -
Trading
Automated Trading Systems: The Pros and Cons
Automated trading systems minimize emotions, allow for faster order entry, lead to greater consistency and resolve "pilot error." -
Investing
Interpreting a Strategy Performance Report
A strategy performance report can provide key metrics to decide if your strategy is a winner. -
Trading
10 steps to building a winning trading plan
It's impossible to avoid disaster without trading rules — make sure you know how to devise them for yourself. -
Trading
Top 4 Things Successful Forex Traders Do
By blending good analysis with effective implementation, you can dramatically improve your profits in the forex trading market. Find out how. -
Trading
Losing To Win
Adopting realistic expectations is essential to staying in the trading game. -
Trading
Top 4 mistakes that cause futures traders to fail
Learn about common mistakes futures traders make, how to avoid them and what qualities successful futures traders possess.