A Complete System - what is it?

Systems traders use the term Complete System and it is very important to them.

In short, a complete system is one which can be delegated for trading on a computer without needing human intervention. There are no ‘loose ends’ in a complete system, so it will be able to function in all circumstances without interruption.

All trading systems need to have particular capabilities and these can be expressed as seven elements. When a system possesses all of these elements it will be complete.

The seven elements have been given the following names:

1. What to trade?
2. When to trade?
3. How much to trade?
4. What it I’m wrong?
5. Portfolio manager.
6. Risk manager.
7. Money manager.

The methods used by professional traders require all these elements to be present to enable a full evaluation of any system to be conducted.

 

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