PMKing Trading LLC
The Trading System Component Model
***** OMG *****

The key to effective system development is an understanding of what each component of a trading system contributes to in terms of the trait or behavior of the system, and how these relate to your overall objectives.


This mini-eBook describes the main system objectives:


  • Implementation Costs
  • Risk & Reward
  • Expectancy


How they relate to each main system trait:


  • Commission
  • Slippage
  • Trade Frequency
  • Cash Made
  • Risk of Ruin
  • Win Percentage
  • Average Winner Size
  • Average Loser Size
  • Average Trade Duration


And how each system component determines the overall personality of the system:


  • Market & Instrument Type
  • Instrument Filter
  • Setup & Entry
  • Position Sizing
  • Exit Strategy


If you clearly understand how each component of your system effects its behavior you have a much better chance of developing systems that exactly meet your objectives.

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