What is a trading system?
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    Super Moderator RoboForex Trader's Avatar
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    What is a trading system?

    Trading system is a set of tools, rules and algorithms, that will help trader achieve profitability. Whatever combination of tools can be used as a signal – candlesticks combinations, news, indicators and so on. There are no limitations there, trader has flexibility here. The main demand – trading system should have an edge and generate gross profit exceeding gross loss.

    Trading system should be described so, that trader should exactly know how to act in different situations. Trader should stick to his rules and not to break it, otherwise result will be unstable.

    Trading systems can be divided on two groups:

    MTS – Mechanical trading system. Trader executes signals that his system provides, manually. Most popular mechanical systems are based on indicators, but there are some them that even employ news to create a signal.

    ATS – Automatic trading system or robot. It is an algorithm that automatically executes every trading signal. Most automatical systems are based on indicators. There are robots that employ Martingale and locks.

    System consists of:

    1. Strategy (the most important)

    2. Set of rules for entry and exit

    3. Money management (optimizing losses and increasing profits)

    All factors above are used in the exact sequence. Also, it’s important to avoid «over-optimization» and not to fit your parameters to price action from the past to create perfect trading system. Market will change and all optimized trading systems tend to «break» and generate random results after that.

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    Registered user zintek's Avatar
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    System working (also known as specialized working systems) is the execution of a well-defined and very limited set of specifications for working a futures trading trading market or individual stock--including accessibility and stop aspects. The working specifications for a particular working strategy can include all kinds of specialized signs, graph styles, quantity, open interest, and even essential aspects. There are all kinds of working techniques available for sale, and even more working techniques that have been developed by individual investors, for their own use.

    The key tenet of a working strategy is that limited signals are given to market accessibility and stop aspects, depending on the aspects of it. Most working techniques are computer-program based, due to the complex characteristics of most of the working aspects. Indeed, working techniques can be highly complex and have a multitude of aspects linked with it. Or, a working strategy can be as simple as a moving- frequent "crossover" method that provides buy and sell signals with each moving frequent crossover.

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    Registered user alv_trader's Avatar
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    Wow .. thank you for this complete explanation about trading strategies bro. Now i know that trading strategies is more complex than just sell or buy. So how about the psychological aspect? If it is not included in a strategy?

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    Rookie mohamed reda's Avatar
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    trading following a strategy is the best way to success in this market so you must follow a strategy or a trading system to know when you must open an order or when you must exit your trade so any Forex trader must have a strategy to make profits from this market.and also we must thanks you for this topic it is so important .my regards .

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    Automated trading system gives you profit but I think when you are having some good amount of capital at least $2000 beside after giving some good profits that go for some big loss which will upset you and then again it will give you profit. But I will advice you not to use automated trading system better you to trade by your own knowledge.

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    Trading system is almost same like trading plan. It's about how we implementing the trading strategy and money management while we trade in forex. With following the trading plan and be discipline with that then we can get the maximum profit will less risk in forex. Too bad there is a lot of traders which is breaking their trading system so they are losing their money in forex.

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    Personally, i see a trading rule as the strategy we will use in order to trade and the restrictions in the strategy is called the rule. they are there in order to make us always make sure that we are in the safe zone and we will have what it needed to make a good trading result by limiting us to some rules. Well, surely that the rules will always help us to not get the worst possible experience in trading forex.

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    Quote Originally Posted by RoboForex Trader View Post
    System consists of:

    1. Strategy (the most important)

    2. Set of rules for entry and exit

    3. Money management (optimizing losses and increasing profits)
    trading system that does include 3, and some traders may have differing views on this, and some novice traders usually they are less disciplined entry and exit in the market and it can make a loss and margincall in trading, and then we can get some profit and close position

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    Trading system is a system according to which a trader trades in the market. It includes when to buy, what to buy, when too book profits or losses. This trading system is developed by a trader keeping his risk capacity in consideration. It requires a great deal of knowledge and good experience .

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    Super Moderator RoboForex Trader's Avatar
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    Quote Originally Posted by alv_trader View Post
    So how about the psychological aspect? If it is not included in a strategy?
    There’s no psychological aspect here. If we have signal, we accept a trade, if not – we don't do anything. Trading system is tested on hictorical data. We know that we have statistical edge.

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