Trade Like the Professionals
When systems traders refer to trading rules they mean the rules that determine when they enter and exit the market. When they open and close positions is another way of putting it.
What is meant by trading rules?
Every complete system contains 7 elements. There are four elements which are the trading rules plus three ‘managers’ that look after risk control and position sizing functions.
Once a trader has decided what trading method he will use, he only needs to select the trading rules. Unlike the trader’s basic methods, the trading rules can be changed or replaced as better alternatives are found or improvements are made by the trader.
Successful traders are always looking for ways to improve their systems and spend much of their time on this. But they never interfere with their live trading, preferring to delegate this task to their computers – as all systems traders do.
If you wish to read more about trading rules, please refer to The Seven Elements of a Complete Trading System
Copyright David Bromley 2006
All Rights Reserved.
David Bromley helps
new and aspiring systems
traders establish a complete
trading method to compete
with the professionals