Tag Archives | Trading Systems Definitions

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Trading Systems 101

Traders buy and sell for a variety of reasons. Some traders will make decisions based upon news headlines or gut feelings. One may read that gasoline prices are at record levels and decide they have to go down, while with equal certainty another trader decides the news justifies even higher prices. These strategies rely on […]

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Turtle Traders

Famous commodities trader Richard Dennis was having an ongoing debate with his friend and business partner Bill Eckhardt about whether great traders are born or made – whether it is possible to teach the ability to trade successfully. While Dennis firmly believed that trading abilities could be broken down into a quantifiable system of rules […]

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Back Testing

A method commonly used in developing a trading system. A trading strategy is tested and optimized based on historical data. It is then applied to current data to determine predictive value. Back Testing is thus based on the notion that a strategy that worked in the past will continue to work in the future.

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Trading involves substantial risk of loss and is not suitable for all individuals. Past Performance is not indicative of future results.