how to become a system trader - Trading-Lab

breakout · #1 02-08-2008, 11:43 AM

I've been considering for quite a while approaching trading in a more objective way. I currently trade basing my decisions on charts and indicators, but would like to try trading more mechanically as I believe discretionary trading can often be affected by moods and fears.

Is anyone here a system/automated trader? and what do you suggest I should do to get started?

thanks in advance

Leth · #2 02-08-2008, 12:53 PM

Hey breakout...

Im a 100% mechanical systems trader...all i do is buy or sell when my system tells me to. Ill post a little more info on it soon if it helps...

Leth

ChaosTheory · #3 02-12-2008, 02:14 PM

here's a simple checklist of what you can do to approach system trading:

learn basic coding syntax
code your ideas using wealth lab, tradestation, or amibroker
you need 3 sets of rules: entry conditions, exit conditions, and money management
test your trading ideas and see what warrants further testing

breakout · #4 02-14-2008, 07:28 AM

leth,

looking forward to hearing your take on system trading.....

Alchemist · #5 02-14-2008, 12:38 PM

breakout,

leth is on vacation. he'll be back next week.

Leth · #6 02-17-2008, 06:30 PM

Fundamentally, one should make sure that a system (no matter what type of trading you want to do, time frame, etc.) is built around the following questions:

1. How and when do I enter the market?
2. How many contracts/shares do I trade?
3. How much money do I risk per trade?
4. How and when do I exit with a profit?
5. How and when do I exit with a loss?

Its basically plug and play. Its pretty simple, although I must say, when I started out, I didn't quite understand it. However, time took care of all that. From personal experience, I found it much easier to design a trading system via EOD (following it is another story). After you get used to designing a system using EOD data, it becomes easier to design one around intraday if thats your cup of tea. Eventually, you will be good enough to design a system (with an edge) in five minutes or less to trade any market in any time frame. The key of course is to create a system that works in harmony with your personality...which is the tricky part.

Good luck my friend

Here are some plug and play examples that you may have already read before... http://www.trading-lab.com/forums/bu...tems-t196.html

Hope this helps..

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#1 02-08-2008, 11:43 AM
breakout Member Join Date: Jun 2007 Posts: 63	how to become a system trader I've been considering for quite a while approaching trading in a more objective way. I currently trade basing my decisions on charts and indicators, but would like to try trading more mechanically as I believe discretionary trading can often be affected by moods and fears. Is anyone here a system/automated trader? and what do you suggest I should do to get started? thanks in advance

#2 02-08-2008, 12:53 PM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	Hey breakout... Im a 100% mechanical systems trader...all i do is buy or sell when my system tells me to. Ill post a little more info on it soon if it helps... Leth __________________ Nothing is more difficult than the art of maneuvering for advantageous positions. - Sun-Tzu Trade with the trend, Ride winners, Cut losers, Keep bets small, Use Stops - Old School Last edited by Leth : 02-09-2008 at 02:59 AM.

#3 02-12-2008, 02:14 PM
ChaosTheory Member Join Date: Jul 2007 Posts: 44	here's a simple checklist of what you can do to approach system trading: learn basic coding syntax code your ideas using wealth lab, tradestation, or amibroker you need 3 sets of rules: entry conditions, exit conditions, and money management test your trading ideas and see what warrants further testing

#4 02-14-2008, 07:28 AM
breakout Member Join Date: Jun 2007 Posts: 63	leth, looking forward to hearing your take on system trading.....

#5 02-14-2008, 12:38 PM
Alchemist founder of Trading-Lab Join Date: May 2007 Location: New York, NY Posts: 296	breakout, leth is on vacation. he'll be back next week. __________________ Happy Trading!

#6 02-17-2008, 06:30 PM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	Fundamentally, one should make sure that a system (no matter what type of trading you want to do, time frame, etc.) is built around the following questions: 1. How and when do I enter the market? 2. How many contracts/shares do I trade? 3. How much money do I risk per trade? 4. How and when do I exit with a profit? 5. How and when do I exit with a loss? Its basically plug and play. Its pretty simple, although I must say, when I started out, I didn't quite understand it. However, time took care of all that. From personal experience, I found it much easier to design a trading system via EOD (following it is another story). After you get used to designing a system using EOD data, it becomes easier to design one around intraday if thats your cup of tea. Eventually, you will be good enough to design a system (with an edge) in five minutes or less to trade any market in any time frame. The key of course is to create a system that works in harmony with your personality...which is the tricky part. Good luck my friend Here are some plug and play examples that you may have already read before... http://www.trading-lab.com/forums/bu...tems-t196.html Hope this helps.. __________________ Nothing is more difficult than the art of maneuvering for advantageous positions. - Sun-Tzu Trade with the trend, Ride winners, Cut losers, Keep bets small, Use Stops - Old School Last edited by Leth : 02-18-2008 at 02:27 AM.