Trading System vs Trading Method: how different and what differences?

Discussion in 'Strategy Building' started by OddTrader, Jun 30, 2008.

Trading System vs Trading Method: how different and what differences?

  1. They are very different!

    13 vote(s)
    68.4%
  2. They are almost the same!

    6 vote(s)
    31.6%
  3. I don't really know or understand the issue!

    0 vote(s)
    0.0%
  1. Trading System vs Trading Method: how different are they and what are their differences?

    Or are they the same trading technique, without any major or significant differences?

    Welcome to share your opinions.
     
  2. A trading system is a codified set of rules that a trader implements in the ultimate hope of being an overall consistent trader.

    A trading method is how that trader actually executes those rules.

    While theoritically they are the same, they can and often do widely vary.

    Regards
     
  3. kut2k2

    kut2k2

    A trading system is a particular kind of trading method. IOW not all trading methods are trading systems.

    A trading system has precise rules: it can at least theoretically be automated (programmed into a computer).

    A trading method consisting of reading tea leaves is not a trading system.
     
  4. I guess some fairly critical elements have not been mentioned yet so far, imo!
     
  5. In my experience I notice coders or traders that tend to program their strategies will use the term trading system.

    In contrast, traders that don't code or have not coded their strategy will use the term trading method even if its possible to code their method.

    Mark
     
  6. ehorn

    ehorn

    A trading method is a procedure, technique, or way of doing something, esp. in accordance with a definative plan.

    A trading system is a coordinated body of methods or a scheme or plan of procedure; organizational scheme, or an assemblage or combination of things or parts forming a complex or unitary whole.

    An agenda is a list or program of things to be done or considered.
     
  7. Method is subset of system? Or System is a subset of method? Or else?
     
  8. Strategy=Method? Or not? Or else?
     
  9. jtnet

    jtnet

    systems use rsi, methods use cci
     
  10. That's funny!

    How about many other indicators/ oscillators and their combinations?
     
    #10     Jun 30, 2008