Trading Systems
When I'm bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don't buy long stocks on a scale down, I buy on a scale up. ~ Jesse Livermore

A trading system is a collection of formulas and rules that generate buy and sell recommendations.

Trading systems have been developed for decades, but the recent advances in technology with the pc and internet have increased interest in them and broadened the number of people actively involved in their use.

Technical indicators are most frequently used to form the rules of trading systems. Combinations of technical indicators are also often used to create proprietary algorithms.

Trading systems are optimized in order to manage risk and increase profitability, and this is done by modifying different parameters within each rule.

Trading systems remove emotion from trading. This has several obvious benefits – for example a trading system will not place an excessively high risk trade due to frustration from a prior losing trade.

Market Harbinger Institute focuses on developing trading systems around methodologies with realistic EOD entry and expectations for every day traders.