Trading Systems

Ping Pong, Trading, & Making Money In Sideways Markets

One of the easiest ways to lose money as a trader is to apply a trend following strategy in a sideways market. Unfortunately, most traders learn this the hard way. Some traders will eventually learn how to avoid sideways markets, and do fairly well with trend following strategies, but few traders ev

Why You Should Trade more than one Trading System

Recently I received the following question: “You suggested that we should have 2 or 3 systems to trade. Why?” Trading more than one system smoothens your equity curve. You should at least trade 2 systems: A trend following system in a trending market and

Introduction To Testing Trading Ideas

Henry Carstens VerticalSolutions.com Article in PDF Format Introduction If someone says, “I’m making money buying the SP futures on Friday’s close and selling on Monday’s close, you’ve got to get in on this!” How would you know whether that idea was a good or bad? What about a n

How to Develop a Profitable Trading System

In this article we will explain to you how to develop a profitable trading system in five steps: Step 1: Select a market and a timeframe Step 2: Define entry rules Step 3: Define exit rules Step 4: Evaluate your system Step 5: Improving the system Let’s take a closer

How long should you backtest a trading system?

I am frequently asked how long one should backtest a trading system. Though there’s no easy answer, I will provide you with some guidelines. There are a few factors that you need to consider when determining the period for backtesting your trading system: ·

A Sample Trading System

We want to present you here a simple trading system that we developed following the steps of our eBook “How to develop a profitable trading system”. Step 1: Selecting a market and timeframe One of the most popular markets these days is the e-mini S&P, and