On this course I reveal SIX unique trading systems for US stocks that are created and back-tested with the trading platform Amibroker.
Trading System One is a simple trend following strategy that has been remarkably steady over recent years.
System Two is a long/short model that uses a special ranking.
System Three is a short-term strategy that attempts to capture movement in the after hours market.
System Four is a short-term system that buys gaps on the open.
System Five is a short selling strategy with a holding period of 5 days.
And System Six is a momentum system that utilises volume.
Each trading system is fully explained, comes with trade examples, statistics and recorded-back-tests.
I use professional historical data to back-test these strategies and each strategy has been double checked by an independent programmer with 12 years Amibroker experience.
As well as the trading systems on the course, you’re also going to learn useful tips for back-testing, some crucial mistakes you need to avoid and some final recommendations and improvements.
These recommendations should help frame the strategies and help you to better understand system development in general.
But this course is really about the trading systems themselves and the fundamental ideas behind them.
So if you’re ready to explore these unique trading systems, and you want to become a more profitable trader, just click take this course and let’s get started.
Trading in equities, foreign exchange, CFDs, indices, futures and commodities carries a high level of risk and may not be suitable for all individuals. A high degree of leverage can work against you as well as for you. You should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some, or all, of your initial investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN.
This lecture describes the tools we use to create trading systems and explains our development process including flow diagram.
System one is a simple trend following strategy for stocks that has been steady over recent years. This system trades on weekly timeframes.
Another trend following strategy for stocks that goes long and short and utilises a ranking factor.
A short-term system designed to capture gains in the after hours market.
A short-term strategy with a holding period of one day.
Trading system five is a short selling strategy for US stocks with a holding period of 5 days.
This system utilises volume and momentum to find strongly trending stocks. Holding period is one week.
Some techniques to stress test a trading system.
In this lecture we look at some criticism of trading systems and present a useful way to improve system performance.
In this lecture we look at a number of ways traders can improve their trading system performance by working 'with the machine'.
We have come to the end of the course. Thank you for listening.
Some additional reading for system traders.
Some thoughts on the benefits of trading systems.
A word about tax information.
Joe B Marwood is a trader and investor specialising in financial trading and mechanical trading systems.
He began his career trading stock and bond futures for a prop trading firm in the UK and now works through his own private company.
How did you get started?
I started my career as a professional day trader for a UK-based prop firm where my principal products were the FTSE 100 future and German Bund.
Today I trade a portfolio of individual stocks and occasionally futures and I have a passion for building automated trading strategies and systems.
What is your trading style?
I use a mechanical strategy to trade on a largely end of day basis. I look at both fundamental and technical analysis and use strategies that are based on historical simulations. I often combine those strategies with my own experience and discretion to come up with trades that I believe are the most attractive on a risk/reward basis.
Mean reversion or trend following?
I have found that traditional trend following methods do not work as well as they once did. My methods are based on my own observations on the market whether they are based on momentum, trends, mean reversion or anything else.
Who taught you how to trade?
My mentor was a former head of trading at a well known German investment bank. I have also read and studied countless books, journals, and articles, and have spent many hours in the market. You can never stop learning.
Why did you make this course?
To educate others so that they don't make the same mistakes I made. Learning to trade can be a very expensive and drawn out process. As a trader, it is also extremely beneficial to have sources of side income as that takes the pressure off your own trading. Putting what I have learnt into a course also solidifies my own learning.
What are the secrets to successful trading?
First of all, you must have the passion to succeed. If you are in it only for the money you will have a very tough time and will be doomed to failure. You must also be comfortable with risk and be able to separate your emotions from the money. Having a system with a profitable expectancy is also crucial and for that you will likely need a strong ability with numbers.
Why do most traders fail?
Most traders start off under-capitalised and then chase unrealistic returns which results in them blowing their account after a couple of big losses. Most beginner traders do not realise the realities of trading which is why they have trouble sticking to trading plans and dealing with their emotions. Trading should be treated as a business.