Automated trading

Rule based trading require certain steps to follow :

The broad idea can be divided into the following steps;

1 Selection of testing period ( ideally it should cover bull, bear and sideways periods) and also know split between in and out of sample data;
2 Optimizing the system and selecting the best combination of parameters;
3 Building on walk forward back testing ;
4 Assessment of probable equity curve scenarios six months forward through Monte Carlo simulation on out of sample equity curve.
5 Dont lay over emphasis on curve fitting on recent data.

Once you have selected a trading system that suits with your trading style you must be patient and trust your system and wait for the signal to enter the trade.
You should always analyse your risk and reward before entering into the market.
Cut your losses and let your profits ride.
Never trade against the trend

Coming back to the markets global markets are trading firm FTSE is trading above the recent high.

Some of the trading ideas for the week are :

Essar Oil support 135 resistance 150-157

Mcleod Russel support 224 resistance 270

Voltas support 162 resistance 182 -187

Vijaya bank support 49 resistance 56

Read a lot and do paper trading. Do not quit your job and take trading as monthly income generation source .

For some practice you can see charts on

http://www.freestockcharts.com/

http://stockcharts.com/index.html


Have fun and trade well