Be independent, be your own financial planner
 
Search our Website:
Go to Bottom
 
  1. Monetizing Social Media : Find out how social media can also be a great money making tool.
 
  1. Pure Money Making tools : Here we are composing tools to help you manage, optimize and guide your internet marketing strategies!
  2. SEO Forum : Use our open forum. You can use this as an opportunity to share your links and make profits!

Trade systems

Trade systemsTrade systems are nothing but a reflection of what happens in our brains. They are electronic platforms for entering trading orders with an algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or quantity of the order, or in many cases initiating the order without human intervention. The most important aspect of a successful stock trading system is that it must allow the user of the system to be "systematic and unemotional." Some systems are not automated at all and consist solely of a mental checklist that the system user goes through before every trade that he or she takes.

Similar to their stock counterparts, options trading systems range from fully automated to a simple mental checklist. These systems may be generic in nature and simply identify that a bullish, neutral or bearish option trade should be employed, without specifying the exact options trade that should be placed. Other options trade systems, though, are very specific. That is, each system is related to a certain type of options trade, e.g. a butterfly or an iron condor. No matter which trading system you use, don't forget to tweak and revise it as needed.



Algorithmic trading strategies

  1. Trend following

  2. Pair trading

    : The pairs trade or pair trading is a market-neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sidewise movement. This trading strategy is categorized as a statistical arbitrage and convergence trading strategy.
  3. Delta-neutral strategies

    : In finance, delta-neutral describes a portfolio of related financial securities, in which the portfolio value remains unchanged due to small changes in the value of the underlying security. Such a portfolio typically contains options and their corresponding underlying securities such that positive and negative delta components offset, resulting in the portfolio's value being relatively insensitive to changes in the value of the underlying security.
Polls
  1. Arbitrage

    : In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit at zero cost.

    In the simplest example, any good sold in one market should sell for the same price in another. Traders may, for example, find that the price of wheat is lower in agricultural regions than in cities, purchase the good, and transport it to another region to sell at a higher price. This type of price arbitrage is the most common, but this simple example ignores the cost of transport, storage, risk, and other factors. "True" arbitrage requires that there be no market risk involved. Where securities are traded on more than one exchange, arbitrage occurs by simultaneously buying in one and selling on the other.
  2. Mean reversion

    : Mean reversion is a mathematical methodology sometimes used for stock investing, but it can be applied to other processes. In general terms the idea is that both a stock's high and low prices are temporary, and that a stock's price tends to have an average price over time.

    The Standard deviation of the most recent prices (e.g., the last 20) is often used as a buy or sell indicator.

    Stock reporting services (such as Yahoo! Finance, MS Investor, Morningstar, etc.), commonly offer moving averages for periods such as 50 and 100 days. While reporting services provide the averages, identifying the high and low prices for the study period is still necessary.
  1. Scalping trade

  2. Transaction cost reduction

    : Most strategies referred to as algorithmic trading strategies (as well as algorithmic liquidity-seeking) fall into the cost-reduction category. The basic idea is to break down a large order into small orders and place them in the market over time. The choice of algorithm depends on various factors, with the most important being volatility and liquidity of the stock. For example, for a highly liquid stock, matching a certain percentage of the overall orders of stock (called volume inline algorithms) is usually a good strategy, but for a highly illiquid stock, algorithms try to match every order that has a favorable price (called liquidity-seeking algorithms).

    A special class of these algorithmic trading strategies attempts to detect algorithmic or iceberg orders on the other side (i.e. if you are trying to buy, the algorithm will try to detect orders for the sell side). These algorithms are called sniffing algorithms. A typical example is "Stealth."

    Some examples of algorithms are TWAP, VWAP, Implementation shortfall, POV, Display size, Liquidity seeker, and Stealth.
  3. Strategies that only pertain to dark pools

    : Recently, HFT, which comprises a broad set of buy-side as well as market making sell side traders, has become more prominent and controversial. These algorithms or techniques are commonly given names such as "Stealth" (developed by the Deutsche Bank), "Iceberg", "Dagger", "Guerrilla", "Sniper", "BASOR" (developed by Quod Financial) and "Sniffer". Dark pools are alternative electronic stock exchanges where trading takes place anonymously, with most orders hidden or "iceberged." Gamers or "sharks" sniff out large orders by "pinging" small market orders to buy and sell. When several small orders are filled the sharks may have discovered the presence of a large iceberged order.

Stock market for beginners

Elliott wave

  1. 2652
    The best way to day-trade is the 2652 theory of day trading.
    1. 2652 theory of trading
    2. High low trading
  2. Buy the company
    Stock market can be irrational in short term. Good companies can make temporary losses. But an investor should not get diverted by this.
  3. Contrarian investing
  4. Outperform the market
  5. Day trading guide
  6. Head and shoulders pattern
  7. News trade
  8. Rebate trade
    This is an equity trading style that uses ECN rebates as primary source of profit and revenue.
  9. Scalping trade
  10. Trade systems
  1. Elliott Wave principle
  2. Characteristics of Elliott Wave
    1. Characteristics of Impulse Waves
    2. Characteristics of Corrective Waves
  3. Elliott wave trader
    A few tips that can make the whole process of Elliott Wave trading a lot easier for you.
  4. Impulse Patterns
    1. Impulse Patterns in depth
    2. Profit Taking at the end of Impulse
      After every big rally there is profit booking, the profit money is re-invested into the portfolio, and then the market again starts to climb.
  5. Corrective Pattern
    1. Simple Correction
    2. Complex Correction
      Each segment composed of smaller waves.
Get Free Followers
Content updates

Email Notification

Share on APSense

Seed Newsvine

Pure Money Making tools

Marketing / SEO   Business Blogs
Blogarama - Blog Directory   Top Small-Business Sites
  bookmark at folkd
Increase Page Rank   Wutzle - Blog DirectoryWutzle - Blog DirectoryMy Blog Rating
My Zimbio   Top Blogs
laksamana786

Newest Posts

Pure Money Making community

 
You are here :
Home » Share Trading » Stock market for beginners » Trade systems
Bookmark this topic :
Bookmark and Share
 
 
Subscribe to our Content Pure Money Making updates Subscribe to our Community Financial information sites Internet business services Websites of the future

Join Traiborg

 
 
 
 
 
Go to top
 
Home  |  About Us  |  Contact Us  |  Links  |  Submit Your Site  |  Exchange Link  |  Sitemap  |  XML Sitemap  |  Toolbar Copyright © 2009-2014 Pure Money Making.net.
All Rights Reserved.