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 timeframeStep 2: Define entry rulesStep 3: Define exit rulesStep 4: Evaluate your systemStep 5: Improving the system Let’s take a closer look at these steps. Step 1: Select a market
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?
Futures trading covers a vast array of trading instruments, from stock indices and U.S. Treasury bonds to precious metals, energy sources such as oil and gas, and everyday foodstuffs including meats, grains and coffee.
Achieving success as a futures market trader can be a daunting proposition, most traders will agree. Given that premise, why would a successful, longtime futures trader like Joe DiNapoli reveal his trading secrets to the public? “Commodity traders tend to be risk-takers–self-made people. I enjoy them immensely. The public doesn’t realize some of the advantages
By Jim Wyckoff I have received several email messages from my readers asking about how to best determine entry and exit strategies when trading markets. Here are just a few of their quotes: “Though my success rate has been high, I am only breaking even financially, due to getting out too early in profit and