What is a trading system?
A trading system is a set of repeatable rules, that answers the following questions that a trader might have:
1) When should I enter a trade?
2) When should I exit a trade?
3) How much volatility is in the market?
4) How much should money I place the trade?
5) How much money should I lose on a trade?
A good trading system will answer those questions before a trade is ever placed.
The driver of any good trading system is the (buy and sell) signals. How do you know when to get into a trade? This is where technical analysis comes in. Technical analysis is an integral part of any trading system. Many tools have been developed by others to determine buy and sell signals some are below: