TMT strategy classifications

Trading System Classification

The New York Times recently printed an article headed: Too Many Choices:A Problem That Can Paralyse.

Here is mans dilemma; we are attracted to product lines that are full of choices. However, because there are just too many offerings to choose from, we cannot make a decision or it becomes too complex. Things get put off and they become untimely.

In the financial markets having so many products is a natural result of the prosperity but too many choices has its frustrating elements, like opportunity cost, buyers remorse and decision making paralysis.

So I understand how traders may feel frustrated in the face of this plus all the “two bit” advertising that goes along with it.

I have produced a track for traders / system developers that should help  simplify and compartmentalize.

We know what it takes to be a good trader and package multiple strategies as one system, and price it like one system to help you along the way.

Thinking Mans Trader has categorized three types of trading styles:

1. Day Traders

An intra-day system trading more than two trades a day, every day for an aggressive style, normally referred to as a scalper.

A traditional day trader uses an exit MOC along with other intraday exits to trade once a day 3 to 4 times week.

A StealthTrader or a conservative day trader executes 1 to 2 times a week.

2. Swing Trading Strategy

Any system that holds past the close of the regular day session into the Globex session is a swing trader.

An aggressive swing trader will trade 6 to 7 times a month for positions that last 2 to 3 days.

The moderately active swing system will execute 3 to 4 times a month with holding periods of 3 to 6 days.

3. Long Term Trend

These types of strategies can go weeks and months holding the same position.

We have trading strategy / method can be robust or specialized.