Eliminating Emotions

A trading strategy is governed by a set of rules that do not deviate. Emotional bias is eliminated because the systems operate within the parameters known by the trader. The parameters can be trusted based on historical analysis (backtesting) and real world market studies (forward testing), so that the trader can have confidence in the strategy and its operating characteristics.

Executing strategies

A trading strategy can be executed by a trader (manually) or automated (by computer). Manual trading requires a great deal of skill and discipline. It is tempting for the trader to deviate from the strategy, which usually reduces its performance.

An automated trading strategy wraps trading formulas into automated order and execution systems. Advanced computer modeling techniques, combined with electronic access to world market data and information, enable traders using a trading strategy to have a unique market vantage point. A trading strategy can automate all or part of your investment portfolio. Computer trading models can be adjusted for either conservative or aggressive trading styles.

Styles

• Technical analysis
• Fundamental analysis
• Quantitative trading
• Trend following
• Mean reversion
• Volatility
• Trading Levels

Timeframes

• Intraday
• High-frequency
• Scalping
• Shaving - a round trip trade (a buy and sell) in as little as one second
• Momentum
• Day trading
• Trend following
• Gorilla Trading - Buying near the closing bell and selling the next morning (holding a position overnight)
• Long term trading
• Short term trading

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