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 a trend-fading system in a non-trending market. Take a look at … Read more

What account size do I need?

By Rockwell Trading How much money can I make? These questions are the most frequently asked questions. In this article we will try to answer these questions. First of all, let’s clarify a common misunderstanding: You never risk your full account size. You always have a “catastrophic stop”, and it is important to define the … Read more

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 look at these steps. Step … Read more

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: Trade Frequency How many trades per day does your trading system generate? … Read more