A trading system is a precise set of rules that automatically define market entries and exits. Since the rules are explicit and pre-defined, it makes such a trading system statistically testable. In other words, we can figure out how the system performed in the past and how it would perform in the future with reasonable confidence.

This book explains exactly how you can build a winning trading system for yourself:

• What a trading system is

• Why you need a trading system

• How to develop a trading system step-by-step, with examples: Trade entry logic, determination of appropriate exits, risk management controls, profit targets

• How to test the forecast the power and robustness of your trading system

• How to periodically adapt your trading system to changing market conditions

• Position sizing examples: Money management versus risk management.

• Systematic portfolio trading: How to combine a number of trading systems into an effective portfolio of systems for trading different markets

• Step-by-step analysis of popular trading systems — the Bollinger Band System and the Triangle System

• Ideas and practical tips for building your own trading systems.

Urban Jaekle holds a diploma in physics. He is a regular speaker at the main
European trading events and contributes to Traders and Active Trader Magazines.
His main business is to provide trading systems' advisory services for hedge funds
and institutional investors — mainly with automated trading systems, portfolio
optimisation and money management solutions.