Tackle Today: How to Build a Trading System
May 2, 2023
Edge, backtest, forward-test
Traders,
Want to graduate from a hobbyist slinging random trades each week to a professional assassin? Systematize your strategies. In last night’s Coaching Mastermind Group, we covered just such a topic. If you’re a Coaching Student, be sure to catch the recording!
Building a system involves multiple parts.
It starts with an idea of a pattern or strategy that you think could be a profit generator over time (an EDGE, in other words). If the sum of the winners doesn’t exceed the sum of the losers, then it’s not a system worthy of your time.
Discovering and vetting the EDGE takes some time. You must create rules for entry, management, and exit. Then you must backtest it over various environments to ensure it’s profitable. Consistency is key. Finally, you forward-test it to see if your backtested results continue to play out in the real world.
With time and experience, you may end up tweaking your rules to better enhance the returns.
Gino’s Gems
Chart of the Day: Small-Caps (IWM)
Small caps ended Monday with a long upper shadow at resistance. This morning’s 1% decline shows bears now pressing the advantage.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30 PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30 PM EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only the coaches at Tackle Trading can deliver.
Financial freedom is a journey
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