System Trading
System Trading as defined by Trade-Ideas is the process of entering and exiting trades using a specific set of rules. One of the most difficult aspects of trading is being able to understand why one trade works and another does not work. The System Trading rules are created in order to have consistency when evaluating performance.
System Trading is often compared to Discretionary Trading where an individual makes trade entry and exit decision based on feel. Using Trade-Ideas an individual is able to create many different System Trading rules across multiple time frames and test the results using our OddsMaker software.
There are several common examples of System Trading. One that most individuals are familiar with is a system of buying a stock that when the stock prices crosses above the simple 200 day moving average on a closing basis and selling if the stock trades below the simple 200 day moving average on a closing basis.