karl@thetwotraders.com
Technical Analysis
Forex, Commodities and Crypto
Forex Education
15 years experience
Trusted By
500+ Customers
Sign up

Removing the human factor with systems trading

Almost every career is at a threat of having people replaced by machines. I know this was one of my main worries whilst at university; studying a degree steeped in logic, how long was it before the human error I was capable of made what I learned redundant by a machine that could do it better?

AI and humanity do not need to be mutually exclusive, especially in trading. What gets most traders is the inability to separate ‘gut feeling’ and subjective opinion from their trading decisions, sometimes with disastrous results.

What is System Trading?

A trading system is a set of rules that you follow to enter trades, place stop losses, and exit trades. A trading system can be as simple or complex as you require, but it is important to remember that just because a trading system is complex does not mean it is better than a simple one. The system I trade uses a combination of some of the simplest technical indicators and has shown very positive returns.

Why doesn’t everyone do this?

Rule-based trading gives a huge advantage to a trader by taking away any subjectivity to their trading. There should be no decisions made on emotions or ‘gut instinct’. The result is that you should be trading like a machine – disciplined and consistent. Most traders, however, begin to panic when they hit a small drawdown and start bending the rules or no longer following them, thus undermining the entire purpose of systems trading. The Two Traders community is here to support you through this by being 100% transparent with regular portfolio updates, analysis, and blogs so that you can develop the skillset you need to profit.

Start Simple

The first system I remember testing was extremely straightforward, and turned me into a profitable trader almost overnight. Using systems revolutionised my trading by removing all emotion and subjectivity from my decisions, which can often be the downfall of even the best traders. Start with the basic indicators, like moving averages, and gradually build a strategy around that. 

Indicators are where trading gets creative. There are infinite combinations of indicators that can be placed together to make an incredibly profitable trading strategy. Because of this, finding the perfect system doesn’t happen overnight; it took me 6 months of testing with tens of thousands of trades to design the system that I trade today and signal to my followers, and helped me return over 300% in the first 2 years. Hypothetically, this is what you could have made if you traded my exact rules from 2000-2015…  

Note: Past performance does not indicate future results

Try it for yourself. Go to the live charts and open up a full screen chart, click on the technical indicators button at the top of the chart. You will find hundreds of indicators, not even half of the indicators that exist.

Optimise

Once you have a system, the act of placing trades only takes a few minutes (only 15 minutes for me) and can even be automated with some brokers.

Most importantly, with the content found on The Two Traders, you don’t have to go through the pain-staking lengths of creating your own system over a number of months.  There is free content explaining each technical indicator, with trading techniques you can use to become a self-sufficient trader. Until then, you can follow all my trades for free on Facebook and Twitter.

The Two Traders

If you want to start trading click here or visit our Get The Trading Edge tab to start learning

Sign up to our Forex signals here.

Leave a Reply