Download - Automated Trading Strategies Guidelines
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A Publication of AppleInvestor
Design Build UseAutomated TradingStrategiesA Guide To What You Need to Know
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TABLE OF CONTENTS
1. What is an Automated Strategy?
2. What are the Pros/Cons?
3. System Design Guidelines
4. The Development Lifecycle
5. Strategy Ideas
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Disclaimer
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CHAPTER ONE
What Is AnAutomated
Strategy?
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Introduction
What is an AutomatedTrading Strategy?
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What is an Automated
Trading Strategy?
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CHAPTER Two
What Are
the Pros/Cons of an
Automated
Strategy?
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What are the Pros/Cons of an
Automated Trading Strategy?
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What are the Pros/Cons of an
Automated Trading Strategy?
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What are the Pros/Cons of an
Automated Trading Strategy?
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CHAPTER Three
System
Design
Guidelines
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DesignEight Guidelines to Improve
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System Aspects
Testing and More Testing
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Risk and Volatility
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Draw Down
A drawdown is the reduction of capital after a series of losing trades. This is
normally calculated by getting the di"erence between a relative peak in capital
minus a relative trough. Draw down is noted as a percentage of the initial tradingcapital.
Every system has drawdowns, no matter how smooth your optimized and curve
fitted equity curve looks. Your job is to understand and minimize the frequency
and depth of drawdowns.
From principles is derived probability,
but truth is obtained only from facts.
- Dixon G. Watts
Probability
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CHAPTER Four
The System
DevelopmentLifecycle
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Design Lifecycle
Kaizen - a ContinuousImprovement Process
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Where Are the Ideas?
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