Position Trading Using TradersGPS

Use TradersGPS For Position Trading

Trading using technical indicators is like using the map and compass. System trading is like using a GPS. The challenge in system trading is most people do not have the experience, time and money to learn how to do it effectively.

For a GPS to work, it must be tested for accuracy and reliability.

This is the same for TradersGPS. System trading came to me because of necessity as I did not deliberately plan to go into system trading. It was during that time when I could not trade full time after my client lost the $250,000 that I realized the need to trade longer term and to systemize my trading.

The TradersGPS system is thus born out of desperation and necessity.

When it comes to position trading, you want to always ride the trend until it changes. In position trading, positions are open or closed for two weeks or longer, depending on the progress and the current state of the trend.

Most position traders use longer time frame charts with daily, weekly or even monthly candlesticks. This style of trading suits most long-term investors or traders who only have time to monitor their trades once a day.

This is ideal for traders who are holding a fulltime job. I like to “scale in” for position trading. This means entering more lots at the earlier part of the trend when it is still building and slowly decrease lots to enter as it progresses to maturity.

We must always remember that trends do not only go in one direction. They can change anytime. Hence, it is our duty to watch them closely.

For long term trading like position trading, I prefer developing systems to mechanize my entries and exits. That means entries and exits are performed by the computer without human intervention. This greatly reduces the involvement of emotions, which complicates the already complex equation of trading.

This system will also help take care and to calculate proper position sizing (to be discussed in later chapter) for every trade made. This ensures that my trading account will remain healthy, even when suffering a series of losses. With a system, the trading process will be systemized and therefore eliminating discretions.