A good trading system should be an integral part of this business, so you can enjoy superior returns with controlled risk.

However, the choice of a good trading system can be a very difficult process. The problem is that most of the systems offered by the public, not good enough, which means that they do not provide effective, state distributors.

Therefore, it becomes necessary to have a way to distinguish a good system of false rashvalennyh systems. Fortunately, there is a way to do this using a set of requirements to be met by the system before you could consider using it.
I have suggested here 8 criteria that will allow you to choose some really good systems from all others.


A good trading system meets the requirements of each of the 8 key elements, while most systems will perform only a few requirements. For example, the trading system may be advertised as providing 80 percent of the winning transaction, which at first glance it sounds quite attractive.

However, losing the deal the same system may be 5 times higher than the average profit a winning deal, making the system loss.

1) Mechanical system

Trading system must be 100% mechanical, with the exception of a human factor. It also can not change or adapt, as time continues to conform to current data. Also, the system algorithms or rules with manual performance, should not hide or be adapted for short-term, non-repeated patterns of historical data, which eliminates losing the deal.
A good indicator of the system will be to demonstrate consistently good results at least 5 years of past data that meet all other criteria are also listed in this article. Promotional materials of many systems to choose only the winning transaction, ignoring losing the deal or, worse still, will not be able to detect Losing the deal as a whole.

2) Liquid Markets

Trading system should be geared to the liquid markets where sufficient daily volume exists to easily and consistently comply with the warrant, as it is a system with minimal slippage. For example, the futures market index S & P 500 is a liquid, while the market contracts for orange juice is much less liquid.

3) The independence of market direction

A good trading system will not depend on the specific, such as bovine, sending the market for its success. It must demonstrate successful work in all market conditions: bullish market, bearish market, as well as trade in the side band.

4) Hypothetical results of the

Primary way to evaluate the trading system is based on testing of its work on historical data (