Idea: Formulating A Strategy
This video discusses the "brainstorming" phase of developing a trading system and is the first in a series of videos on Investor/RT's back-testing and trading system capability, as well as optimization.
The first decision you must make when building your trading system is what bag of securities you would like to monitor, study, and ultimately trade. This is a very important decision and not necessarily an easy one. Will you be tracking the Nasdaq 100, the Dow 30, the E-Mini, S&P Futures, Microsoft Options? The choice is up to you. If you haven't made this decision yet, then maybe you have some more research to do before proceeding. In our example, we'll track the Nasdaq 100.
Please review first the Trading System Builder interface page if you are not familiar with Investor/RT basic backtesting feature.
The system detailed below is discussed in the article "Trade The Price Swings" by Barbara Star, Ph. D, in the December 2003 issue of Technical Analysis of Stocks and Commodities Magazine.
This video documents how to create a trading system which enters when price breaks outside of opening range. A chart definition which implements a very similar system to one discussed in video can be found here: https://www.linnsoft.com/charts/openingrangesystem-es