Rule sets link the indicator to the trading decisions. We have given many simple examples in the discussions about indicators, but rule sets tend to get very complex when we include money management elements. It is dangerous to completely decouple the trading decision aspects from the money management aspects of rule sets. In other words, we do not want to decouple the offense from the defense. They should interact and complement each other in an optimal manner discovered through research and optimization. We will discuss common rule sets for making trading decisions as they correspond to certain types of indicators. ...
© Chris Conlan 2016
Chris Conlan, Automated Trading with R, 10.1007/978-1-4842-2178-5_5
5. Rule Sets
Chris Conlan1
(1)Bethesda, Maryland, USA
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