Best way to become a system trader

J

JaiSreeram

I currently trade looking and chart with indicators, draw trend lines ect to make my decisions. I really want to start trading more objective. I noticed my performance is often based on my moods. I know trading mechanically will solve this what is the best way to start?
:(
 
If you want objective analysis, learn to test your ideas with statistical tests. Test every idea to see if it's better than random, i.e. significant.
 
Quote from JaiSreeram:

I currently trade looking and chart with indicators, draw trend lines ect to make my decisions. I really want to start trading more objective. I noticed my performance is often based on my moods. I know trading mechanically will solve this what is the best way to start?
:(
More...

Learn how to code you ideas using Amibroker, Wealth Lab, Trade station or some other program.

You need 3 things: entry conditions, exit conditions and money management.

Test your ideas.
 
Quote from JaiSreeram:

I currently trade looking and chart with indicators, draw trend lines ect to make my decisions. I really want to start trading more objective. I noticed my performance is often based on my moods. I know trading mechanically will solve this what is the best way to start?
:(
More...


There are software packages available that will let you backtest any scenario, and build a system around the results. I use and recommend Investor Rt at www.linnsoft.com. For about $100 a month, you can get the backtesting/charting package with a data feed from another vendor. Cancel any time.

Whatever software you use, it will help you take the emotions out of your trading, which as you've already discovered, is a key to being profitable.
 
have u seen some of the data? systematic funds underperform discretionary, and drawdowns are much bigger for systematic funds.

in long run im told, discretionary will outperform.

*note "systematic" do not include arbs
 
I like the first Market Wizards book. Jesse Livermore wrote a book titled "How To Trade In Stocks" that I think is pretty good. I like the Nicholas Darvas book "How I Made $ 2 Million In The Stock Market".

Elitetrader.com has lots of examples of system trading. Here is my study of a Zweig system: http://www.elitetrader.com/vb/showthread.php?s=&threadid=76216

I like Murray Ruggiero's thread on "Developing A Trading System Step By Step":
http://www.elitetrader.com/vb/showthread.php?s=&threadid=62291
 
Quote from Hook N. Sinker:

I like the first Market Wizards book. Jesse Livermore wrote a book titled "How To Trade In Stocks" that I think is pretty good. I like the Nicholas Darvas book "How I Made $ 2 Million In The Stock Market".

Elitetrader.com has lots of examples of system trading. Here is my study of a Zweig system: http://www.elitetrader.com/vb/showthread.php?s=&threadid=76216

I like Murray Ruggiero's thread on "Developing A Trading System Step By Step":
http://www.elitetrader.com/vb/showthread.php?s=&threadid=62291
More...

I would ask , What do you think about TradersStudio , I have seen some very good comments on this site about it. I have a day job so I need to place my orders before work
 
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