Forex System Development Workshop. Basics #1: Your Trader Type.

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1 Forex System Development Workshop Basics #1: Title goes Five here Steps to Selecting Your Trader Type

2 Welcome G day, Howdy, Guten Tag, Ni Hao, Вітаю, Hallo, Konnichiwa, Chào and welcome to the Forex System Development Workshop.

3 Live and Interactive Don t be a Shy Sally or a Bashful Barry, ask questions, take your time.

4 What This Workshop is Not About Finding the Holy Grail Trading System.

5 You Can Make a Lot of Money By Not Being Perfect A good system you can trade with few mistakes is better than a high-return system that you find difficult to trade (and it is much easier and faster to develop).

6 What the Workshop is About Helping you to build a robust trading system that you can trade to achieve your goals. [Trading] is real life, not some bulls**t strategist fantasy world Martin Taylor, Market Wizard

7 What makes a good system? You need a system that fits your beliefs, is balanced with your lifestyle and achieves your objectives.

8 It s Not Rocket Science It just takes the right knowledge and the time and discipline to put it together.

9 Stop You Going Down the Wrong Rabbit Hole You can spend a lot of time looking at the wrong things a little bit of knowledge can be very dangerous, especially if the person is sure they are right.

10 Only About 5% of System Development is the Entry Your entry is only one of several of the cogs in a fully functional strategy and is of less importance.

11 Each Part of Your System Should be Elegant not cluttered.

12 You Don t Need to Start From Scratch You can pick and choose from what works.

13 Questions

14 Forex System Development Workshop Five Steps to Selecting Title goes Your here Trader Type

15 Get Clear on What You Want From Your Strategy You have to start with your goal Ray Dalio

16 Design a Strategy to Achieve Your Goal Define a target, a strategy consistent with the target, a set of disciplines to follow, and risk management guidelines. Then trade, track and evaluate your performance. Ari Kiev, Market Wizard

17 Step #1 Choose Your Trading Timeframe First choose your trading timeframe.

18 Fit Trading to Your Lifestyle Trading needs to be balanced with the requirements of everyday life.

19 Be Honest with Yourself About: Family and work commitments The amount of time a day you can spend on trading The amount of time your system will take to trade vs. research Your requirements for peak performance (like sleep!)

20 Some Tips Trading should not be strenuous Let go of most of the opportunities you see and focus on the very best ones Lack of organization and mistakes are what will cost you the most Be very considerate of your partner or spouse Before you place a trade you need time to get centered

21 Day Trading Minimum of 2 hours a day trading 30 minutes preparation and review 1 hour charts or lower Active trade management throughout the session Trades typically closed within the day 1 to many trades a day

22 Swing Trading 30 minutes to 1 hour a day trading 4 hour/ daily charts 15 minutes preparation and review Trades managed 1-4 times a day Trades typically closed within two days to two weeks 4-10 trades at any one time

23 Position trading minutes a day trading or can be done once a week 15 minutes preparation and review Daily, weekly monthly charts Trades managed once a day to once a week Trades typically closed within two weeks to several months 4-10 trades at any one time

24 Step #2 Pick Your Trading Method While in time you will may want have more than one method pick a style that fits your psychology.

25 The Pull-back Trader

26 The Break-out Trader

27 The Contrarian

28 Step #3 Fundamentals Vs. Technicals Will you consider the fundamental picture or are you a technician only?

29 The Macro Trader Takes the time to develop a fundamental view about a currency pair. Kyle Bass

30 The Technician Takes trades based off the price action. "I always laugh at people who say, 'I've never met a rich technician'. I love that! It's such an arrogant, nonsensical response. I used fundamentals for nine years and got rich as a technician. Marty Schwartz, Market Wizard

31 Fundamentals and Technicals Or perhaps you will use a combination of both? Paul Tudor Jones

32 Step #4 Mechanical vs Discretionary Will you be a mechanical or discretionary trader?

33 Mechanical Trader Mechanical traders automate their rules so trades are placed by a computer.

34 Mechanical System Trader Good for traders who have trouble pulling the trigger Save time but it is a research war You can pay someone to automate your rules Deal with data and system errors About 10% of successful traders are mechanical system traders

35 Ed Seykota Master System Trader Systems trading is ultimately discretionary. The manager still has to decide how much risk to accept, which markets to play, and how aggressively to increase and decrease the trading base as a function of equity change. Ed Seykota

36 Rules Based Discretionary Trader A rules based discretionary trader follows a set of clearly defined written rules as opposed to a no rules discretionary trader.

37 Rules Based Discretionary Trader More adaptive system (for the retail trader) Include fundamental factors Test your system by hand and observation Deal with bias in testing 90% of successful traders are rules based discretionary.

38 Step #5 Get Clear On Your Systems Objectives Van Tharp suggest 50% of your system development time should be spent on thinking about your objectives.

39 Step #5 Return Objective What return are you looking to achieve over what period? Week Month Year

40 Step #5 Maximum Drawdown Objective What is the maximum drawdown on your account you are willing to accept over what period? Week Month Year

41 Step #5 Chance of Maximum Drawdown How willing are you to experience your maximum drawdown in order to receive the returns you are after?

42 Step #5 Win Rate and Risk/Reward Ratio You can choose a targeting win rate and risk reward ratio for your system. You can use average risk/reward or targeted risk reward.

43 Step #5 Trading Opportunities How may trades will your system place over what time period?

44 Step #5 Maximum Number of Positions What are the maximum number of trades you will hold at any one time?

45 Example System Type System Type: Swing, Discretionary, Technical and Fundamental, Pull-back Trader Metric Week Month Year Return Drawdown Chance DD Win Rate Risk/Reward 0.3/ / /0.6 Max positions

46 Test Your Assumptions You then need to run through some simulations to check that your figures are in alignment.

47 Bonus Step: The Psychology of System Design What are your beliefs that have caused you to design your system in this way?

48 Basics #1 Template Fill out and send me the template and I will review but only if you have a detailed beliefs section otherwise it will be right back at you.

49 Questions

50 Forex System Development Workshop #1 Discussion Points Title goes here

51 The Seduction of Day Trading It is easy to get seduced by the fast profits of day trading, but often the longer-term systems are more suited to the retail trader.

52 The Market Types Change Rapidly on Lower Timeframes

53 Keep Returns In Perspective 1% a week adds up to a lot of money over time.

54 There are Opportunities for Those that Prove Themselves Seed funding and incubation programs Prop trading allocation Placement in a fund

55 What Do You Want to See From this Event Let me know what you want to see from this event

56 Forex System Development Workshop #1 Questions, Queries, Title goes Feedback here

Forex System Development Workshop. Basics #4: Through Position Sizing.

Forex System Development Workshop Basics #4: Title goes Achieving here Your Goals Through Position Sizing www.fxrenew.com Welcome G day, Howdy, Guten Tag, Ni Hao, Вітаю, Hallo, Konnichiwa, Chào and welcome