Building Your Own Trading System - Part 4

In previous instalments of this series, I’ve provided some information on why you should build your own trading system, with the last part providing a simple trading system.

The big question for many traders is “How do I get a system that gives me an edge?”. Following the well worn approaches of moving averages and other lagging indicators will not get you there. You can be sure that the world’s best traders are not going over the same old ground.

I have mentioned some advanced tools and algorithms: what are they, what do you use them for and how can you easily access them?

Building Your Own Trading System - Part 3

In the last article in this series, I discussed how most trading systems are based around separating trading signals from noise. I talked about using loess smoothing, an advanced smoothing algorithm that smooths more effectively than moving averages. Previously, I discussed identifying some realistic trading goals for the small trader.

This article will build on the article about smoothing, and bring together the goals and smoothing approaches and we’ll explore how to convert these into actual trading rules for a simple trading model.

Building Your Own Trading System - Part 2

In the last article on “Building Your Own Trading System”, I wrote about identifying your trading goals. There is no point in building a system if you don’t know what you want to achieve out of it.

This article is about trading system algorithms. It aims to give you an understanding on how to interpret price data to identify buy and sell points, and some hints on how to do this mathematically. As far as I am aware, this information is not available elsewhere.

Building Your Own Trading System - Part 1

In other articles, I’ve tested out two “off the shelf” trading systems with mixed results. These are a quick way to start trading, but to have a system that reflects your own risk tolerance and goals, you need to build your own trading system.

Most people want their own trading system, but building one is often a mystery. How do you build a system? This article is the first in a series about how to do just that.

If there is enough interest, future articles in the series will cover obtaining price data, types of systems, trading algorithms, backtesting the system and implementing the system. Keep reading for the first article which will help identify your goals for your own system.