What is System Trading?

What is System Trading? 

System trading is a mathematical approach to the stock market.  The system is defined to give you an edge in the stock market.  Most of the decisions required to place trades are predefined by the rules of the system.   The system has been tested over many years and in many different market environments.  

Why System Trading? 

With system trading, the system decides for you.  You are given a specific set of buy and sell orders.  System trading takes the guesswork out of placing trades and more importantly allows you to place trades with a high chance of success.  However, it does not guarantee a profit on each trades.

Is System Trading Easy?

No.  Contrary to what you may have seen on television or read in a book, trading is never easy.   With system trading, the software will give you Buy and Sell instructions.  The goal of system trading is to remove emotions from trading decisions.  However, you will still have the emotions of fear and greed to contend with.  Sometimes it is hard to follow the instructions.  The buy order might look too scary,  the sell order seems too early, etc.  

Humans are emotionally wired to make exactly the wrong moves in the stock market. That is why so many traders fail.   The trades put out by the system may not be intuitive or easy to follow, but have been proven to work successfully in various market conditions over a long period of time. 

So, with system trading you follow the rules of the system and try to leave your emotions out of it.  After a while, it all starts to make sense.  You will begin to notice patterns and begin to better understand how the market works.  Then the learning and the profits begin to come more easily to you.

Why Use EdgeTrades?

Yes, there are other system vendors out there. Some are good, but some are a pack of lies. At EdgeTrades we are experts in math, computer programming, and trading we have spent many years running tests on thousands of trading ideas to determine what works and when.

Why Not Develop Your Own System?

There are many software vendors and broker platforms which offer you the opportunity to develop your own personalized trading strategies.  We encourage you to try this!  You will  find is a difficult challenge.  Contrary to what the software vendors want you to believe, developing a reliable trading system takes computer programming skills, math skills, a firm understanding of trading and technical analysis plus the patience to slog through thousands of trials in order to end up with a good and robust system.

Why Does It Take So Long? 

Simply, it is because of the trial and error that is required to find a good system. It is said that Thomas Edison made 10,000 attempts to finally create a usable light bulb.  Developing an effective trading system also takes thousand of trials to finally craft a winning formula.  This is because the the stock market keeps changing and morphing as time goes on.  It is constantly in flux.  A trading system that you find works great today, may not work next week, next month, or next year.  Beginners should not trade with the simplistic trading systems they are able to develop.  However, systems development is a really great learning experience, so we encourage you to try.  Finding a system that works over an extended period of time takes years of experience, commitment, and determination.  

Key Points To Remember:
  1. System trading is based on a mathematical approach to the stock market.
  2. The software system gives you buy and sell instructions.
  3. A human still needs to execute the trades.
  4. The system removes the emotions from the decisions.
  5. The system does not remove the emotions from the human. 
  6. Trading systems development requires skills in math, programming and trading.
  7. Properly tested systems are defined after thousands of trials. 
  8. Simplistic DIY systems are not reliable.

When risking your hard earned money, please look for a well tested system from a reliable source, from those who have a lot of experience with trading and understand what it takes to develop a great system


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