
What is the Trading System?
The Trading System implies a number of rules, algorithms and strategies which could help to get a profit. Anything can be used as a signal whether it be planned news or indicators or japanese candlesticks charting, even if it is tick-tack-toe combination. The only limitation is your imagination, and the only criteria is profit you get. The Trading System should be formalizable. It’s necessary for trader to have a possibility of describing his actions within each specific situation. The trader must abide by established rules also to keep an algorithm, because it’s breaking can result in unstable trading.
There are two types of trading system.
MTS – is the Mechanical Trading System. It means the trading system, which is managed by trader manual. Lots of the most popular MTS are based on a code of practice, indicators, oscillators or even news.
ATS –is the Automatic Trading System or Robot – in another words. It is completely programmed cycle of actions which needs monitoring and control by trader only. Lots of ATS also use indicators. There are some Robots which working process is based on Martingale system and lock trading.
The System as itself consists of:
1. Strategy – the main point.
2. Set of rules for open\close deal optimization.
3. Many-management to optimize losses and fatten the profits.
All of pre-cited factors should be used in a successive order (as it numbered). It is needed to except Trading parameters’ re-optimization, when the System repeats algorithms and actions which have fattened the profits precedently. But it does not guarantee such efficiency hereafter.