Trading method
A trading method is a set of rules for reproducible trading, defined by the following elements:
| element | description |
|---|---|
| Screening | How to find a stock to open |
| Open | When&How to open a position |
| Close | When&How to close a position |
method evaluation
A method can be evaluated by the following perspectives:
| perspective | description |
|---|---|
| expectation | An expected value of earnings |
| performance | earnings of all past trades based on the method |
method categories
Every method can be categorized based on what the open/close decision depends on
| category | based on … |
|---|---|
| fundamentals | intrinsic value |
| technical | pattern matching on past data |
| momentum | supply and demand |
| quants | statistics or trivial market distortions |
list of methods
To adding new method, refer How to develop a trading method.
| category | method | expectation | performance | description |
|---|---|---|---|---|
| technical | Turtle trading method | ? | ? | turtle trading method (not original) |
| technical | Linear trend method | ? | ? | screening by how a chart is linear |