Generating Ideas For Trading System Development

The first step in the process is to imagine conceptualize something that you can form into some rules. Okay. This is the hypothesis generation. From what I heard, I jumped through each of the groups. There were good ideas in all of the groups, whether they’re profitable or not, it can make a good system out of them.

If you’re new to systematic trading, start with my guide to trading systems.

I don’t know yet, but just like in trading, a lot of the systems you try and develop will be losers. And you just throw them away and then you move on to the next one. So we’ve got to get into a a routine, a rhythm of coming up with ideas, writing them down and just building this bank of ideas. So that when we go to test our own ideas, we’ve got a bank of hypotheses to draw from.

Okay, so I’ve got in my OneNote, folder for for trading systems. I got hundreds and hundreds of hypotheses that I will, I want to test ultimately, and as you dream up these ideas, you should be writing these down as well. Don’t limit your idea generation by how quickly you can test those ideas.

It’s great to decouple them. Because some ideas are going to be better than others. Sometimes you’re going to be really interested in one idea and not so interested in another. So my approach is whenever I have an idea, I just dump it down. I don’t worry about whether I’ve got time to test in the next six months.

I just write the idea down so it’s captioned. And then when I do have time to test, I go look through my list of ideas, and I try and prioritize them.

Practical details like this are what I walk through step by step with members of the Trader Success System.

More on Developing a Trading System

• 4 Steps to Develop Your Own Stock Trading System
• How to Manage the Trading System Development Process
• When You Should and Should Not Do Trading System Development
• This Trading System Development Tip Is Almost Too Easy
• Best Trading Lessons and Trading System Ideas
• Copying Stock Trading System Ideas: It’s Not Cheating
• How to Distil Your Past Trading Approaches Into a New Trading System