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Entry Entry is the act of opening a position based on an input signal from Research. Not all signals result in an order since the signal must pass through a position sizing algorithm and validation checklist. The required inputs from Research are the product symbol, Purchase Price and...

Thanks Fletch, that is a good point. I have worked with software systems for years, and I find that spending time up front to make sure the architecture is flexible and scalable is well worth it. I think it is more than window dressing. I will start with a system that handles all the...

At least one :D

Research Most research will be automated by the individual trading strategies. Manual research will be based on services such a The Street (Cramer) and Real Money, forum/blog watch lists, and possibly other subscription services to identify candidate securities. The focus is on automated...

I'll be using several strategies, but in general I am looking for large R-multiple trades, not 1R. Some of the glossary definitions imply ways to defend capital, but those are concepts, not strategies. I will expand on this soon - I already have it written up but would like to review before...

I got the approximate 1% from Van Tharp. Once I have a system with a proven expectancy I can use the Kelly Criterion (http://globalgrowthinvestor.com/144/how-much-of-my-total-trading-account-should-i-risk-risk-part-iv/) if I want to get more aggressive, but I don't think that will be necessary...

Rules: The following rules are in effect for all trades without exception. These rules are not to be violated under any circumstances. 1. All positions shall be covered by a Stop Loss order. A Stop is never pulled nor moved away from the stock price – it can only be moved closer to...

TradeStation is the plan, using either Parallels or BootCamp. I have a new iMac that should be able to handle the load. I will post what I actually end up using and how it compares to a straight Windows installation. I think the next version of OSX will have Parallels' functionality built...

It is not directly related - I have been preparing to switch to trading for a couple months. The key aspect for me is the "automated" aspect, not the legality. Potential illegality for poker is certainly a long term risk to that career path, though. Aaron Brown's discussion of online gaming...

OK I see where this is going. While I have desires outside the market, my timetable for taking money from my trading account is 2 years at the minimum - likely much longer. I am starting small (more on that later) and will need to build my account for quite some time. My outside income is...

Thanks for the kind words of encouragement. Come to think of it, maybe I'll grab a couple steaks for the grill.

Quick note: Excuse me if don't explicitly answer specific inquiries - I am busy working on my system. I will try to address all questions through my regular posts, though. Here I am using the term "system" to describe my entire architecture for trading. That architecture will be able to...

The goal of my system is to automate multiple trading strategies while using consistent and flexible position sizing and “unwinding” (closing a position). The edge of my system is that through formulaic, continual order updating we can track and exit multiple positions with much greater...

Hello. My handle is Chabah, and I am trying to become an automated stock trader. I have been developing my own system on paper (Word, actually), mostly as an exercise, to keep track of my learning and explore my ideas about the markets and trading. I work in the financial industry, but not...

I am starting my own automated system and looking at exactly this question. You might look at "Trade Your Way to Financial Freedom" by Van Tharp, a new edition is coming out in November. I read "Financial Freedom Through Electronic Day Trading" by Van Tharp and Brian June, and while a bit...

I like the explanation of your thinking process - it is good to have a well-defined view of what you are doing. I think too many people just jump in and start swinging around. As for your three aspects, I don't see the need for a Holding Methodology. There is no work in holding a stock...