Building a trading system by Frank Alfonso
Dramatic world events will continue to produce uncertainty in today's global financial markets, and
most trading experts will agree that some form of technical strategy is necessary to reduce this
information explosion to an objective buy/sell/hold decision-making process. I have developed a
computerized strategy based on three primary trading principles:
Trade with the trend,
Let your profits run, and
Cut your losses short.
Most profitable traders will agree that these three principles have had the most impact on their success.
Although markets are in trends less than 50% of the time, participating in major moves is where most
money is made in the futures markets. Some experts claim that most of their profits are generated by
fewer than 10% of their trades.