‘Trading Systems’ Book review

In this book, Urban Jaekle explores system development and portfolio optimization for successful trading.  Here are my 3 top learning points from the book:

1. The 5 stages of the hypothetic deductive method for a trading system –
Observation, hypothesis, prediction, verification and conclusion

2. If your system is net positive, it does not necessarily mean it is going to be
profitable. The inclusion of time filter for entries is a great insight and
consideration for traders to include in their trading system

3. Comparison of systems without exits vs with stops vs with stops and exits is
a great reflection point for traders to reevaluate their individual trading
system performance and strength – BOM strategy is a great example of a
simple yet robust strategy over 80 years!

I really resonated with the overall message of the book of building your systems on a strong logic and keeping it simple. Overall, a great book for review of one’s trading system and to integrate certain concepts to make the trader’s strategy more robust and sustainable.

To purchase the book, click on the link: https://www.harriman-house.com/trading-systems2

Posted in:Educational

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