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How to Develop Your Own Trading System

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2023-07-06 12:42:03
Investing in Stocks For Dummies
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To be a successful trader, you must have good judgment and a solid trading system. Follow the steps in the following list to develop a system that works for you and that reflects your priorities and tolerances.

  1. Select system development tools.

  2. Gather historical data to test your system.

  3. Develop and test your system design.

  4. Identify system optimization pitfalls.

  5. Test with blind simulation.

  6. Account for slippage.

  7. Keep a trading journal.

  8. Frequently evaluate your trades.

About This Article

This article is from the book: 

About the book author:

Lita Epstein, who earned her MBA from Emory University's Goizueta Business School, enjoys helping people develop good financial, investing, and tax planning skills. She designs and teaches online courses and has written more than 20 books, including Bookkeeping For Dummies and Reading Financial Reports For Dummies, both published by Wiley.

Grayson D. Roze has worked in the financial services industry for StockCharts.com since 2012. He now serves as a business manager at the company. He is the author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery.