• Characteristics of Trading Systems

    Perhaps the most important characteristic of trading systems is that their trading rules can be tested on historical data to see how that set of rules (how the trading system) would have done in the past. There are inherent dangers to doing this revolving around the old saying that hindsight is 20/20; but the ability to look backwards remains a

  • What is a Trading System

    The grand majority of trading systems are based upon technical analysis as in the example above; which uses two pieces of technical analysis (moving average and average true range). Technical analysis is best explained as a method of finding trading ideas based upon the analysis of past prices only, with no consideration of so called fundamental factors such as supply