{{tag>wip}}

====== How to develop a trading method ======

To achieve consistently stable earnings, every trading method must be reproducible.
Furthermore, such methods need to be updated frequently, as the market changes daily.
There's no end of method development.

===== Basic cycle =====

A method must be evaluated and improved as frequent as possible.
After the evaluation, it should be updated to improve.

There are 2 ways to evaluate: by expectation or by performance.

^way^evaluation timing^
|expectation|right after creation or updates of the method|
|performance|right after position close|

<uml>
:create new method;
repeat:evaluate the expectation;
backward:update the method;
repeat while (is the expectation good?) is (bad) not (good);

repeat:execute trade;
  :create a report of the last trade;
  :evaluate the performance;
  if (is the performance good?) then (bad);
    repeat:update the method;
      :evaluate the expectation;
     repeat while (is the expectation good?) is (bad) not (good);
  else (good);
</uml>

<WRAP TODO>writing...</WRAP>

==== Expectation Evaluation ====

==== Performance Evaluation ====

===== Documentize =====

==== Method ====

==== Method Evaluation Report ====

==== Trading Report ====