Part 5 - Designing your system

This on the surface looks a very easy thing to do, but in reality needs a huge amount of time investment, self discipline and sacrifice. If you think you are going to buy a ready made system from the internet which is going to be profitable think again. Its true there are several excellent systems out there but from my experience they always have just that final piece missing. My own system is a combination of idea’s from several bought system over several years.

Just a few include systems that use

Volume information
Price patterns
Support and resistance areas
News
Mathematics
Japanese candle patterns
Point and figure charting
Wave principles
Moon and tide information

Now add to this list the 400 or so technical indicators that you can superimpose on your chart and you get a fair idea of just how big the subject is .If that’s not enough now add to the equation the time frame of your chart 1min 2min 3min etc up to daily and an unlimited number of tick charts 10 tick 18 tick etc etc.

If that’s not enough we now have to look at the number of chart we will use. Will we use 1 chart on say a 1min time scale or 2 chart of say 1min and 5min to determine a signal. Or if we are designing a signal for the Ftse do we want a chart up of the main US future ,after all if the US market is in a deep down trend do we want to go long in the Ftse.

Now you can see what just a huge subject this is.I think I can quite honestly say that in the 8yrs I’ve been trading 6 of those years have been spent in the search and the on going development of my system