Category: Money Tips Date: 2006-01-14
System trading and trading system for investors just entering the foreign exchange market is relatively easy to confuse friends, the two concepts, in the end these two concepts have similarities and differences and similarities between what is at stake here? I believe we all have such doubts. I, today, and we also explore the trading system, and system transactions.
The definition of the transaction on system, at present there is no unified view. The so-called system trading, refers to the trading system traders use to help solve the trade in the process of information gathering, information processing, trading decisions, trading scheme, trade execution, trade issues such as systematic approach. Basically, a system for trading transactions to include their own philosophy as well as specific methods of transactions. For the different systems require different trader is trading philosophy, such as the cycle length of the different investment philosophy differences. The specific transaction methods should involve technical analysis, entry points, stop loss points, played point and so on, where forecasting is not the focus. At the same time as a system trader should try to remove some unnecessary subjectivity. Trading systems development is a systematic project. Transaction trading system is based on systems engineering as the research object, in accordance with a definite purpose of the trading system design, manufacture, testing, evaluation, selection, actual combat, management, maintenance and upgrades, in order to achieve the best overall effectiveness of systems engineering. This stage, require traders not only to the predecessors of the results on the trading system master, recite every word, but also to establish their own trading system to achieve the degree; this stage to require traders to repeatedly painstaking research; this stage, require traders to repeatedly design, manufacture, testing, evaluation, selection, combat the use of trading systems; be able to combat the process, step by step creation of his own trading system, is already running out. System trader trading system, according to their own is determined to implement the system transaction instructions. For a system trader, every failure in line with trading rules are right, but every deviation from the success of trading rules are wrong. To be successful must have a good state of mind control, risk management, market analysis, the so-called 3M philosophy (Mind, Money, Market).
I believe that these two things, and not much essential difference, since the two concepts are proposed to a major premise is to deal systematically. It can be said out of a trading system, there must be a prerequisite for complete system transactions, trading system, trading system, simply compiled a computer program for the computer instead of just the work of the human brain, using a computer to perform some people feel they are easier to replace but can not be resolutely implement the trading discipline and trading principles. But the computer than the human brain to be clever? The problem is controversy over the last century, believed to all of us have the answers. Shen Dan trading system is not magic, but also has its bad areas. Now we introduce how to propose a simple trading system.
I own design trading systems there are several parts of composition, if the words are listed in a list of all of us will probably look dumbfounded many of you may board the name of fast, we are not unheard of. Today I mainly to introduce a simple trading system composition. A simple trading system has been built, then at least include the three components, namely the market-signal systems, signal systems from the city, capital risk-control system. The market signal system, signal system from the city, is mainly of technical analysis tools and the establishment of a number of financial models. Both systems must be built on a sound system based on the transaction, and only you know your system, transactions can be established in line with their own personalized trading systems. The last one is the financial risk control system, this can be set up based on technical analysis of stop-loss, but also based on volatility, even under a financial model to build models or just the most simple control method is to set up a little each time the percentage of loss.
