The Ideal Trading System

Would you recognize the ideal trading system if you saw it?

Surely you’ve seen ads on the internet or in your junk mail about systems that feature 99.99% accuracy or 2000% return on equity…But accuracy and ROE are only 2 of many parameters in an ideal trading system.

To enable yourself to recognize the ideal trading system when you see it, begin with writing out a wish list.

That wish list should describe the ideal trading system in the following terms (“parameters”).

-income frequency
-trading frequency
-time commitment
-win-loss size ratio
-outcome distribution

-accuracy
-performance in different market conditions
-equity requirements
-holding through adverse movements (maximum adverse excursion)
-cutting losses

-drawdown size
-time to recover from drawdown
-whatever other feature you wish you could have in your ideal system…

An example of a description along the foregoing parameters is at the ReadMore page of my Website Item 10

In future articles, I will examine each of these parameters in greater detail...

Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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