How To Make Money With Trading Systems

www.rockwelltrading.com Introduction: How to Make Money with Trading Systems 1 How to Develop a Profitable Trading System 3 Step 1: Select a market and a timeframe 3 Step 2: Define entry rules 4 Step 3: Define exit rules 5 Step 4: Evaluate your system 6 Step 5: Improving your system 8 8 Conclusion 8 A Sample Trading System 9 9 Step 1: Selecting a market and timeframe 9 Step 2: Define entry rules 9 Step 3: Define exit rules 11 Step 4: Evaluate your system 12 Step 5: Improving your system 14 15 Conclusion 15 The 10 Power Principles of Successful Trading Systems 16 16 Principle #1: Few rules - easy to understand 16 16 Principle #2: Trade electronic and liquid markets 16 Principle #3: Make consistent profits 17 17 Principle #4: Maintain a healthy balance between risk and reward 17 17 Principle #5: Find a system that produces at least five trades per week 17 Principle #6: Start small - grow big 18 18 Principle #7: Automate your trading 18 18 Principle #8: Have a high percentage of winning trades 18 Principle #9: Look for a system that is tested on at least 200 trades 19 Principle #10: Chose a valid backtesting period 19 How to apply the 10 Power Principles – An Example 20 Tips, Tricks and Important Information You MUST Know 22 22 How often should you evaluate a system? 22 Should I override the strategy? 24 Understanding "Winning Percentage" 25 What it takes to be a winner 26 Maintain Your Perspective 28