My Trading System

FX RENEW | MY TRADING SYSTEM 1

 MY TRADING SYSTEMS NAME:

System Summary
Outline the system and how and why it works

Summary Belief

Describe the system What is the underlying belief?

Overview / Concept

What are the board objectives of this is system? What is it

trying to achieve?
Core Objective 1

As above if more than one

Core Objective 2

As above if more than one

Core Objective 3

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 Summary Belief

Why the system works? What is the logic of the system?

Why

What is the systems specific edges?

The systems edge 1

As above if more than one

The systems edge 2

As above if more than one

The systems edge 3

What market model factors and beliefs have made you

Market Model choose this system?
Influences

What big picture factors will impact the performance of

this system?
Market Model Factors

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 Summary Belief

What markets are included in the system?

Markets in system
Universe

Is there opportunity to add more markets in future?

Future markets

What percentage of this system is mechanical vs

Degree of discretion discretionary?
involved

What are the main timeframes to be traded on this

system?
Timeframes

How would you classify this system? Is it day trading,

swing trading, trend following, counter-trend?
System Type

How much capital is being allocated to this system and

why?
Capital Allocation

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 Summary Belief

How often will the system need to be monitored and on

what days? Weekly/Daily/Hourly?
Monitoring

What is your confidence level in the performance of the

system?
Confidence level

What potential problems can you see with the system?

Potential problems How will this be guarded against/ mitigated?
with the system 1

As above if more than one

Potential problems
with the system 2

As above if more than one

Potential problems
with the system 3

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System Objectives
Outline the specific goals and objectives of the system

Objective Belief

What gain is the system targeting and over what time What is the underlying belief?
period?
Gain

What Percent chance do you want the system to have of

% Chance of achieving achieving the gain stated?
gain

What is the maximum drawdown you are willing to risk

over what time period?
Drawdown

What percentage change do you want the system to have

% Chance of risking of hitting the maximum drawdown limit?
drawdown

How many trades does the system target over what time
period?
Trading opportunity

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 Objective Belief

What expectancy is the system targeting?

Targeted Expectancy

What risk/reward ratio is the system targeting?

Targeted Risk/Reward
ratio

What win/loss ratio is the system targeting?

Targeted Win/Loss
ratio

What do you expect the maximum losing streak to be and

how likely is that streak to occur? What other information
Targeted losing streak is it important to note about losing streaks for this
system?

What do you expect the maximum winning streak to be

Targeted winning and how likely is that steak to occur? What other
information is it important to note about winning streaks
streak
for this system?

What is the maximum number of positions you can have

Maximum number of at any one time?
positions

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System Rules
Outline the rules for each decision point through-out the trade.

Rules Objective Belief

What is the main market type of this What is the objective of the rule and What is the underlying belief?
Primary Market system? What timeframe is the market how does it achieve the systems
type assessed over? objectives?
Types

What other market types can the

Secondary market system be traded in?
types

When is the system to be traded?

Trading time

Maximum number of positions at any

one time
Trade Limit

Maximum number of trades in a

day/week/ month
Maximum trades

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 Rules Objective Belief

What are the systems setups?

Damn Good Set-up
1

As above if more than one

Damn Good Set-up
2

As above if more than one

Damn Good Set-up
3

As above if more than one

Damn Good Set-up
4

As above if more than one

Damn Good Set-up
5

What is the entry method?

Simple entry 1

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 Rules Objective Belief

As above if more than one

Simple entry 2

As above if more than one

Simple entry 3

What are the scale in points?

Scale-in 1

As above if more than one

Scale in 2

What is the profit objective of an

Trade profit individual trade? (not the profit target)
objective

Describe how the trade is to be

Trade management managed
overview

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 Rules Objective Belief

What are the specific exit rules?

Complex Exit 1

As above if more than one

Complex Exit 2

As above if more than one

Complex Exit 3

As above if more than one

Complex Exit 4

As above if more than one

Complex Exit 5

As above if more than one

Complex Exit 6

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 Rules Objective Belief

What are the rules for re-entries?

Re-entry 1

As above if more than one

Re-entry 2

What are the rules for reversals?

Reversal 1

As above if more than one

Reversal 2

Are hedges counter trades to be

Counter trades/ placed though out the trade? When
will be entered and exited?
Hedges

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System Position Sizing Algorithm
Outline the position sizing algorithm to be used when trading the system.

Rules Objective Belief

Summaries the position sizing model What is the objective of the rule and What is the underlying belief?
how does it achieve the systems
Summary objectives

How does the position sizing model

change with the market type
Market Types

What is the 1R risk and why?

Set 1R Risk

How does the position sizing model

change based on the SQN
SQN Adjustments

What is the position sizing model on

Position sizing on re-entries
re-entries

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 Rules Objective Belief

What is the position sizing model on

Position sizing on counter trades/ hedges?
counter trades/
hedges

Will the position sizing change based

Confidence Level/ on trader confidence level or
probability?
Probabilty

System Management Rules

Outline the rules required for managing the system

Rules Objective Belief

What happens once you reach the What is the objective of the rule and What is the underlying belief?
Gain Objective gain objective in the specified how does it achieve the systems
timeframe? objectives?
reached

What happens once you reach the

Drawdown drawdown objective in the specified
timeframe?
objective reached

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 Rules Objective Beliefs

What happens if you trade the system

System trading below 90% efficiency?
efficiency at below
90%

What happens if the system fails to

System fails to achieve its objectives and over what
time period will the system be judged?
achieve objectives

Trade examples

Insert trade examples...

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