How to Develop Your Own Trading System

Part of the Trading For Dummies Cheat Sheet

To be a successful trader, you have to 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.

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