System Components

A profitable trading system requires clear entry rules, exit criteria, risk management protocols, and position sizing rules.

Entry Rules

Define specific criteria for trade entries, such as technical indicators, chart patterns, or fundamental analysis signals.

Exit Strategies

Clear exit rules prevent emotional decision-making and ensure consistent profit-taking and loss-cutting.

Risk Management Framework

Establish maximum risk per trade, portfolio risk limits, and drawdown controls to protect capital.

System Testing and Optimization

Regular testing and optimization ensures your system remains profitable as market conditions change.