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    A Publication of AppleInvestor

    Design Build UseAutomated TradingStrategiesA Guide To What You Need to Know

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    TABLE OF CONTENTS

    1. What is an Automated Strategy?

    2. What are the Pros/Cons?

    3. System Design Guidelines

    4. The Development Lifecycle

    5. Strategy Ideas

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    Disclaimer

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    CHAPTER ONE

    What Is AnAutomated

    Strategy?

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    Introduction

    What is an AutomatedTrading Strategy?

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    What is an Automated

    Trading Strategy?

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    CHAPTER Two

    What Are

    the Pros/Cons of an

    Automated

    Strategy?

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    What are the Pros/Cons of an

    Automated Trading Strategy?

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    What are the Pros/Cons of an

    Automated Trading Strategy?

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    What are the Pros/Cons of an

    Automated Trading Strategy?

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    CHAPTER Three

    System

    Design

    Guidelines

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    DesignEight Guidelines to Improve

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    System Aspects

    Testing and More Testing

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    Risk and Volatility

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    Draw Down

    A drawdown is the reduction of capital after a series of losing trades. This is

    normally calculated by getting the di"erence between a relative peak in capital

    minus a relative trough. Draw down is noted as a percentage of the initial tradingcapital.

    Every system has drawdowns, no matter how smooth your optimized and curve

    fitted equity curve looks. Your job is to understand and minimize the frequency

    and depth of drawdowns.

    From principles is derived probability,

    but truth is obtained only from facts.

    - Dixon G. Watts

    Probability

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    CHAPTER Four

    The System

    DevelopmentLifecycle

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    Design Lifecycle

    Kaizen - a ContinuousImprovement Process

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    Where Are the Ideas?

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