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The Technical Analyst WWW - Technicalanalyst.co - Uk

The document discusses designing, testing, optimizing, and evaluating trading systems. It provides resources for learning how to program trading systems, including forums, free information and codes, and past papers from TradeStation that explained how example codes were built. It notes that the key components of a trading system are the entry formula, exit formula, and money management formula, with the exit formula focusing on risk management through initial stop losses, trailing stops, targets, and how much risk is taken on each trade. Money management concerns how much is invested on each trade through position sizing. The document cautions that high returns require extensive use of leverage and money management techniques rather than just finding the perfect system.

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74 views2 pages

The Technical Analyst WWW - Technicalanalyst.co - Uk

The document discusses designing, testing, optimizing, and evaluating trading systems. It provides resources for learning how to program trading systems, including forums, free information and codes, and past papers from TradeStation that explained how example codes were built. It notes that the key components of a trading system are the entry formula, exit formula, and money management formula, with the exit formula focusing on risk management through initial stop losses, trailing stops, targets, and how much risk is taken on each trade. Money management concerns how much is invested on each trade through position sizing. The document cautions that high returns require extensive use of leverage and money management techniques rather than just finding the perfect system.

Uploaded by

TUAN NGUYỄN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Design, test, optimisation and evaluation of a trading

system

1. The Technical Analyst www.technicalanalyst.co.uk

2. Technical Analysis of Stocks & Commodities www.traders.com

The forums of TradeStation deserve a particular mention. They are restricted to


customers, but full of good free trading codes and ideas. Other trading platforms and
their forums also provide valuable information and system development ideas.
On eMule you will find free information, including trading codes and sometimes
pieces of software. In the past Omega Research, the software house producing
TradeStation, issued a series of periodic papers called “System Traders and
Development Club” (STAD) in which the TradeStation programmers took a code and
dissected it, explaining how the code was built and showing all the programming tricks
involved. This is the best place to start and you can find these old PDFs still circulating
in traders’ networks. At the time of writing, TradeStation plans to launch a 21st century
version of the popular Strategy Trading and Development Club, which will be called
TradeStation Labs. This online offering will deliver both free and premium content
highlighting TradeStation’s capabilities for unique custom technical and fundamental
analysis and its practical uses for trading stocks, options, futures and forex.

The programming task


Usually beginners are scared when they are faced with the necessity of learning to
program in a language like Easy Language (TradeStation) or MetaStock. The jitters are
apparently greater for programming than for learning a foreign language, even though
nobody could explain how a foreign language differs from a programming language.
This is perhaps due to the fact that programming sounds mathematical and logical
while to speak a foreign language is something most people are more accustomed to,
and it is an endeavour where in any case you can help yourself with gestures and
mimics. As far as we are concerned the contrary is true and it is much more difficult to
learn Russian as a foreign language, for example, than to learn to program in Easy
Language.

A system is comprised of an entry formula, an exit formula and a money management


formula. The exit formula is concerned with “risk management”, that is initial stop
loss, trailing stop, target exit and generally how much money we risk and in which way
we risk it in every trade. “Money management” is concerned with how much we invest
on every trade, that is how many stocks or futures contracts we buy or sell. What
beginner system traders tend not to trust is that returns will be astonishing only through
an extensive and aggressive use of leverage and money management techniques or,

1
Trading
put in
Systems

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