Post Reply 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
How to locate a Day Trading Program that Works
02-14-2018, 03:44 AM
Post: #1
Big Grin How to locate a Day Trading Program that Works
Trading with something can significantly improve your odds of earning profits in the markets.

Another challenge is to locate a program that works. This unique small blue arrow site has some majestic suggestions for when to do it. You have the opportunity to pick from over 300 trading programs available today. However only a huge number of them are trading profitably.

Within the next three minutes I'll present you the 10 Power Principles for Successful Daytrading Systems, which will assist and help you in your study.

Concept #1: Few principles - easy to understand

It could surprise you that the most readily useful daytrading methods have less than 10 principles. The more rules you've, the more likely you 'curve-fitted' your trading system for the past, and this kind of over-optimized system is extremely unlikely to make gains in real markets.

It is important your rules are straightforward and execute. The markets can go fast and respond very wild, and you will not have the full time to be able to produce a trading decision to assess complex formulas. Consider effective ground traders: The only instrument they use is just a calculator, and they make tens of thousands of dollars every single day.

Rule #2: Trade digital and liquid markets

We highly recommend that you trade electric areas as the profits are lower and you obtain instant fills. You need to know as quickly as possible if your order was filled and at what price, because according to these records you plan your exit.

You should never place an exit order before you realize that your entry order is filled. When you trade open outcry markets (non-electronic) you may need to wait awhile before you get your fill. By that time, the market could have already turned and your profitable trade has turned in to a loss!

When investing digital markets you get your floods within just one minute and can straight away place your leave orders. Dealing liquid markets you can prevent slippage, that'll save your self you hundreds if not a large number of dollars.

Rule #3: Make steady profits

You must always look for a trading system that produces a nice and easy fairness curve, even though in the long run the web profit is slightly smaller. Most professional traders choose to get small profits every day in the place of large profits every now and then. If you trade for a living, you need to pay your expenses from your trading profits, and thus you should frequently deposit profits into your trading account.

Making steady earnings will be the secret of successful merchants!

Theory #4: Maintain a wholesome balance between risk and reward

Allow me to give you an example: If you visit a casino and bet everything you've on 'red', then you have a 49% chance of doubling your hard earned money and a 512-410 chance of losing everything. Exactly the same relates to trading: You can make a lot of money if you're risking a lot, but threat of ruin is extremely large. You should find a healthier balance between risk and reward.

Let's say you define 'destroy' as losing 20% of the account, and you define 'achievement' as making 20% profits. Having a trading program with past performance results allow you to calculate the 'threat of damage' and 'chance of success.'

Your threat of ruin should be always significantly less than 5%, and your chance of success should be 5-10 times higher, e.g. if your risk of ruin is 4%, in that case your potential for success ought to be 40% or more.

Rule #5: Look for a program that provides at least five trades each week

The larger the trading fre-quency small the chances of having a losing month. Should you have a trading system that's a winning percentage of 70%, but only produces 1 trade per month, then 1 loser is enough to have a month. In this case, you may have several losing weeks in-a line before you finally start making profits. Meanwhile, how do you buy your costs?

If your trading system provides five trades per week, then you definitely have-on average 20 trades per month. Having a winning percentage of 700-watt - your odds of a winning month are extremely high.

That is the goal of all traders: Having as many successful weeks as possible!

Concept #6: Start small - grow large

Your trading system should permit you to start small and grow large. A good trading system enables you to begin with a couple of contracts, and then boost your place as your trading account grows. This can be contrary to many 'martingale' trading systems that require increasing situation sizes when you are in a losing streak.

You probably learned about this strategy: Double your contracts every-time you drop, and one winner will win back most of the money you previously lost. It's perhaps not unusual to own 4-5 losing trades in a row, and this might already need to trade 16 contracts after just 4 losses! Dealing the e-mini S&P you would then need a merchant account size of a minimum of $63,200, merely to meet up with the margin requirement. That's why martingale programs do not work.

Rule #7: Automate your trading

Emotions and human errors would be the most frequent errors that traders make. By all means you've to avoid these problems. Particularly all through fast markets, it is vital that you determine the entry and exit points fast and accurately; otherwise, you may miss a business or get in a losing situation.

Therefore you ought to automate your trading and choose a trading program that both already is or can be automated. Automating your trading helps it be free of human emotion. The buy and sell procedures are automatic, hands-free, without any manual treatments and you can be sure you make profits when you should according to your plan.

Concept #8: Possess a high percentage of winning positions

Your trading strategy should make over 508 winners. There's no doubt that trading systems with smaller winning proportions can be rewarding, too, but the emotional pressure is enormous. Taking 7 losers from 1-0 positions and not doubting the machine requires excellent discipline, and many professionals can not stand the pressure. After the sixth loser they start 'improving' the machine or stop trading it fully.

Especially for beginners it is a big help if you have a higher winning percentage of more than 65% to gain confidence in your trading and one's body.

Rule #9: Locate a program that is examined on a minimum of 200 trades

The more positions you use in your back-testing (without curve-fitting), the greater the possibilities that your trading system may succeed in the long run. Consider the following table:

Number of Trades 5-0 100 200 300 500 Margin of Error 14% 10% 7% 6% 4%

The more investments you have in your back testing, the smaller the margin of error, and the greater the probability of producing gains in the future.

Theory #10: Chose a appropriate back testing period

I recently saw the next ad: 'Since 1994 I've taught a large number of dealers global a Straightforward and Reliable E-Mini trading methodology.'

Therefore, none of those deals existed before 1997, that's very interesting, as the e-mini S&P was introduced in September 1997, and the e-mini Nasdaq in June 1999. What kind of e-mini trading did this seller teach from 1994-1997???

Exactly the same applies to your back testing: If you created an e-mini S&P trading method, then you should back test it just for the past 2-4 years, because even though the agreement has existed since 1997, there is practically nobody trading it (see chart below ):

Now you realize how-to separate the scam from good working trading systems. By applying this checklist you'll easily determine trading techniques that work and those that will never allow it to be.

Authors name

Markus Heitkoetter

Author's Info:

Markus Heitkoetter is the CEO of Rockwell Trading and a 19 year veteran of the areas. For more free information and recommendations and secret making steady gains with online daytrading, visit his website
Find all posts by this user
Quote this message in a reply
Post Reply 

Forum Jump:

User(s) browsing this thread: 1 Guest(s)