Introduction: the trading game plan

In the first part, we built a foundation of knowledge of technical analysis for trading. In this second part, we will apply that knowledge to design, build and test trading systems that we can use for our trading.

Model trading is a term used by professional traders for their proprietary trading desks. These traders use proprietary models that are not readily available in the market. It is important to use algorithm trading models because not only are all trades accounted for by the algorithm when audited, but the possibility of financial ruin is theoretically zero. This is due to the inherent stop loss mechanism that is incorporated into the algorithm. In fact, this is the most important criterion that model ...

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