System Trading

If you don’t have a trading system in place that you follow, you have no place in the market. Pure and simple. BUT, if you don’t have a trading system yet, please continue reading. Better yet: sign up now below for my 1-on-1 “how to improve your trading” class, which will teach you a tailored system that fits your needs, improves most importantly: improves your profits and profit-making consistency!


A trading system is simple: it’s a proven strategy with a predetermined entry- and exit strategy that minimizes losses, while maximizing gains, and is adhered to by the trader at all times. Never question or 2nd guess your system. As you can see, three things are key here: 1) exit strategy, i.e. when to sell a position; 2) minimize losses; 3) adhered to at all times. Also note that I first wrote “minimize losses” followed by maximizing gains and not even mentioned the latter as being key. Why? Because trading is ALL about managing the downside risk, as the upside will take care of it self. A good system will do that for you.

A system can be many things, as it all depends on your personal trading style. But, one thing all systems have in common: they will not let you in at the bottom, nor out at the top as they follow the trend. Top and bottom hunting is for amateurs. Trend following is for the pros. Why? If you sold at the bottom and bought at the top, you’d nailed both but lost big time… Get it!? The real money is made in the trend. Why? Say a stock bottoms at $100 and rallies to $500. Would you mind buying at $110 and selling at $450 when the system tells it’s a buy and a sell then? When you system indicates low risk / high reward? No! Let the numbers help explain:

The maximum possible gain was $400: 400% IF you’d be able to buy the exact $100 low and $500 high. But, it’s impossible to do that and it comes with a high risk. With the system your gain is now: $340: 309% at a low risk. Either you try to chase the mirage and go broke trying, or you become real, get your emotions under control and become rich. You pick.

So what is a good trading system? As said, there are many, many options available. One is simple following the crossing of moving averages on a chart. Can be from the 1-minute to the monthly chart, all depends on your time frame/comfort level. Below is a trading-system for the 3x ETFs of the S&P500; SPXL and SPXU. It’s based on the hourly chart and thus shorter term: it allows a trader to be in a position for up to a few days, but it will kick the trader out quickly when the market heads the wrong way. Remember: maximize profits, minimize loss?!

spxl 4trading

As you can see, during the volatile and uncertain times of February and March 2018, you would be able to score several good runs netting you a total of 22.1% profit with SPXL  only, with 0 headache and 0 second guessing what the markets will do next. Just follow the system, while the actual index, the S&P500 has gone pretty no where, but down. How about that!? Market beating performance!

Of course this type of trading can also be applied to a daily chart, for swing traders and a weekly or even monthly chart for long-term investors. In addition, there are also entirely different type of systems based on different entry and exit strategies. Below is a system for the daily time frame and it would have netted you 26.50% profit using SPXL, while the S&P would only be up 11.7%. Market beating performance!!!

spxl daily 4 trading

So are you ready to take the next step, are you ready to become a real systematic pro trader that will let profits soar and cut losers? Or will you let your emotions stand in the way, panic sell, and regret it the next day as the market soared back higher…

Sign up now to become so I can teach you a system that fits your needs and increases your profits!

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  1. Pingback: State of the US major indices: three strikes and yeeer out! | INTELLIGENT INVESTING

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