Trading System Design - Part 1
In trading, your system is your method and strategy all combined into one and is what gives you consistency, protects you from substantial losses (hopefully) and provides a sufficient number of profitable trading opportunities.
When you have a system that you fully understand and believe in, this helps tremendously with the whole ‘trading psychology‘ aspect of being a trader.
Needless to say, having that reliable system is also one aspect of trading that many people struggle with. Not necessarily finding or creating one, as they can be found all over the place and making one isn’t really that tough either.
Anyone can make up a system, be it mechanical or discretionary, technical or fundamental, or any combination. Heck just throw some ideas out there and you have a system.
The challenge is ending up with a GOOD system that meets your objectives, fits your comfort zones and performs RELIABLY so that you can have the confidence in it to stick to it with the winners and losers alike - the old discipline challenge.
As you probably know, I created the Trading Performance Analyzer so that you can analyze, evaluate and track the metrics on an existing system, activities that are tremendously helpful in building (or rebuilding) confidence in an existing system, comparing systems to see which is best, and to evaluate changes made to your system when you wish to optimize it.
The new project that I’m working on is a Trading System Design Guide for more of an Engineer’s approach to designing a trading system from scratch, but in layman’s terms, applying the strategies and thinking that I’ve learned over my years as an Engineer.
Where I could use your help is to know what your thoughts, questions and concerns are when it comes to trading systems. This is wide-open here, so any questions you have are welcome.
My objective here is to end up with a guide for designing a trading system that is geared to the beginning, novice and intermediate trader, that will provide you the step-by-step process for designing your own trading system that works, is user-friendly and makes complete sense to you. No more ‘black box’ or ambiguous system to work with.
Simply post your thoughts below. Again, this is wide open, so any question, thought, concern or suggestion is welcome.
Thanks, and yes I will be making this available to you when it’s completed.
Cheers
Brian
P.S. This is the first of a few posts on this project, and the questions will get more detailed as we go along, so make sure to check back here or be checking your inbox.
Recording of the Call With Derek Frey 10-25-08
Recording of the Call with Derek Frey
Below you can play or download the mp3 recording of the call
with Derek Frey held on Saturday October 25, 2008!
An Interview and Q & A Session With Derek Frey, Head Trader
Right-Click on the link below to save the mp3, or click on it to listen
Recording of the Q&A call with Derek Frey on October 25, 2008
Enjoy!
Cheers
Brian
How to Trade Forex Successfully In These Volatile Markets - Pick Derek’s Brain
Are you finding it tough to make sense of what’s going on in the Forex markets lately?
If you are wondering how to trade Forex successfully in these volatile markets, and there is no better way to learn than directly from a Professional trader that is knee deep in the markets every day.
You have the opportunity to attend a call with a very sharp and well-seasoned Pro with over 15 years experience.
This Saturday, I’ll be interviewing Derek Frey, the Head Trader of Odom and Frey - and you’ll have the opportunity to pick his brain and ask the questions that are on your mind right now.
Derek has extensive experience in the Forex markets, as well as the Futures and Options markets, plus the trading community as a whole, so he can be a tremendous asset for you.
This call is going to be all about how to make the most of these volatile markets and avoid losing your shirt as the markets make their wild swings up and down.
Click the link below to register for the call.
Pick Derek’s brain call October 25, 2008
Cheers
Brian
P.S. Most of the call will be Q&A, so you won’t want to miss this one!
Learn to Trade Forex
When you are learning to trade Forex, it can be filled with anxiety and losses or it can be simple and fruitful, depending on how you go about it.. This article is intended to share with you the basic steps necessary to learn to trade Forex in a business-smart manner which gives you the greatest chances of succeeding as an individual trader.
Adopting the proper mindset about trading is the first step as you learn to trade Forex. A highly competitive industry is where you are starting your Forex trading business. You have some fierce competitors that are just as hungry as you. Thousands of seasoned veteran traders, large corporations, institutional investors and international banks make up your competition. Treat your trading as the business that it is.
Taking full responsibility for everything is the next step as you learn to trade Forex. You don’t control the markets, but you do have control over everything you do. It is totally unproductive to blame the markets or anything else. As a Forex Trader, it is your duty to deal with the uncertainty of the currency markets. When you blame, you surrender the ability to do anything and thus lose control.
Learning to trade Forex also includes getting yourself and your business organized. The ultimate goal of Forex trading is consistent profits, so you must be consistent yourself first. Getting organized and systemized is the beginning.
Documenting your system is a must, whether your chosen style of trading is fundamental, technical or a combination of the two. Regularly running and tracking the system metrics is a commonly overlooked yet crucial step as many learn to trade Forex. Confidence, discipline and ability to profit often are result of this step, as it is the turning point for many traders.
If you were starting a business in any other industry, you’d hopefully treat it as a business and you should do the same here. Avoid the get-rich-quick mentality, the hype and impatience. Creating a business plan helps this in many ways. As a business, trading has unique advantages over other types of businesses to pursue, but you must avoid the mistakes and pitfalls.
It can be extremely difficult to learn to trade Forex all on your own. Sorting through the mountain of misinformation, hype and B.S. that’s out there about trading can consume hundreds of your hours of time in addition to being a daunting task. You can save substantial time and money with training or mentoring. Even though training may seem expensive to some, avoiding costly mistakes and developmental time often makes it a very wise business decision.
Be smart with your capital - distinguish between investments and expenses. One mistake many new traders make is to simply start throwing money at systems or trades. Investments in yourself will yield the greatest returns because your trading is all centered around and controlled by you the trader. As you learn to trade Forex, you will also learn a great deal about yourself. Approach your trading properly and you’ll have an asset to serve your for the rest of your life.
Surviving Tough Times In Trading
Times like we’ve seen lately can be very tough, especially for traders because the market conditions are hardly “normal”.
A system may work fine under “normal” conditions, but may or may not perform reliably under circumstances like we’ve seen lately.
To help ensure your survival during these tough times and those potentially ahead, I made a short video and posted it to YouTube. Watch it here,
http://www.youtube.com/watch?v=Apc9ied0suA
It’s during times like these when people that don’t panic, keep their cool, and take appropriate action thrive while others suffer or don’t survive at all.
With the volatility like it has been, the double-edge sword of trading is even more dangerous. Don’t take chances with YOUR trading capital. Watch the video,
http://www.youtube.com/watch?v=Apc9ied0suA
Cheers
Brian
P.S. Watch the video then go here,
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