Welcome to Trading Systems Group!
The purpose of Trading Systems Group (TSG) is to develop and share strict rules-based equity
trading systems. Emotions or simply guessing should play NO PART in your decisions concerning
whether or not to buy or sell a stock! Using a very specific and strict set of rules is
Illustration of a Trading System
For example, let's look at Apple (ticker AAPL) over the last year. For reference this
example was written on 21-DEC-2016, and AAPL closed at $117.06. The closing price one year
prior on 21-DEC-2015 was $107.33. So just using the buy and hold approach, one would have
made a respectable 9.07%. Applying a very simple set of rules such as...
- Buy on 10% pullbacks.
- Sell on 10% rallies.
...results in 33.10% gains over the same time period. Since our initial price was
$107.33 (point A). One would have bought at a 10% pullback, $107.33 X 0.9 = $96.60
(point B). Then sold at a 10% rally, $96.60 X 1.1 = $106.26 (C), bought again for $101.15
(E), sold for $112.39 (F), bought a third time for $106.53 (H), and sold for $117.18 (I).
Now in this specific example, these rules were just made up on the fly for illustrative
purposes and were shown to work for AAPL over a specific 1 year period.
Trading System Rules
During the development of a profitable trading system, the specific rules that are
used in practice should be backtested over many years of historical data and forward tested
as well with paper trades. At what price should an equity be bought? Under what fundamental
and/or technical conditions? How much should be purchased? At what price should it be
sold? How many shares should be sold and how much should be left invested?
Trading Systems Group was created to help answer these questions!
Our Trading Systems
Two different trading systems are currently available for use:
Click on one of the above 2 links for further information on these systems or click
HERE for a brief description of both systems.
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