Trading Strategy Definition
TradeStation Strategy
A Trading Strategy is the collection of rules about when to enter and exit trades as well as the size of each trade.
Extra Insight:
Sometimes people say “trading system” instead and I do it too. I really think trading system is larger than just the entry/exit strategies and includes things like record keeping, etc.
TradeStation is a software tool for analysis and backtesting with facilities for creating custom trading strategies. The image at the top of this article is a screen shot of a very simple entry strategy that buys whenever the stock meets minimum volume requirements. This obviously is not a tradeable strategy but is something I use as a baseline for comparison.
Updated 11/13/08.
October 8th, 2008 Filed under GlossaryTags: backtesting, entry, exit, sizing, strategy, system, TradeStation, trading
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