Things I Look For in a Trading System

8 Things I Look For in a Trading System

It is actually easier to be profitable with a trading system with large wins and small losses. Trading System enables the trader to catch a trend and profit big when the opportunity arises. Stop losses that are well-placed, as well as the use of trailing stops, can help you create an asymmetric trading system that increases your chances of profit. Following Things I Look For in a Trading System

  1. I prefer trading systems that have a limited amount of screen time. Instead of wasting 7 hours glued to the screen, I prefer to make trading decisions in the first and last hour of the trading day.
  2. Rather than day trading, I prefer to use a system with end-of-day signals. This frees up 35 hours per week for backtesting, chart analysis, and just living life.
  3. I prefer trading systems that look beyond the noise and consider the big picture and long-term trend.
  4. Rather than trying to trade every tick minute by minute intra-day, I prefer to trade off the daily chart.
  5. Rather than trying to make sense of headlines or fundamental analysis opinions, I prefer to trade price action.
  6. Simplicity is preferable to complexity in my opinion. Using only price action and moving averages to capture trends or the RSI to catch dips in uptrends, I’ve been profitable over the years.
  7. To reduce the risk of large drawdowns, I usually limit my risk exposure to no more than three discretionary trades at a time.
  8. Using moving averages to capture trends or oversold price levels near the 30 RSI is one of my favourite signals.

These Things I Look For in a Trading System. Good Luck Traders


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