Trend analysis, The 2/1 Rule, The 5 Percent rule Trading Self Check are the components obvious for understanding is you are planning to do Professional trading. Now let’s try to arrange all of these notions in one system called systematic trading. A trading system is a set of rules used in trade for combination of risk management rules, defining effective points of entering and leaving the market. The core target of trading system is excluding emotional factor of trade and systematic, logic decision making. You may already have heared that the emotions are one of the reasons preventing you from trading successfully.

Once you hope that a loosing deal will turn out to be profitable, even if the technical indicators show that currently you need to stop the losses, or if you are afraid that your deal will now turn out to be a loss when there is no such ground, your trade can not be considered systematic. A disciplined trader cares only about keeping the system he is sure in.

Systematic trading

Technical analysis is an important basement for working out a systematic trade. It means reading and studying charts, mathematical calculations, designing trading clichés. A successful trader considers both as successful deals, as failures and makes conclusions based on the comparison.

You can here see a screenshot of our system A, applied to the British Pound to USD chart. The screenshot reflects the information of the 2 recent months, including some indicators that are not so close in time. The system was designed based on a significant technical analysis that was later on applied to the approach based on the volatility assessment. Once the volatility gets larger to some extend, we open the position. Once it reduces, we close the position. The blue arrows going up reflect denote opening long positions and the red arrows going down denote the brief positions.