The Benefits of Strategy Trading

The Benefits of Strategy Trading

I wrote earlier article about the strategy traders who trade the strategies. From my point of view, I believe that if traders stick with trading strategies which have been properly back-tested, they can make more money than trading any other way. Making more money is not the only reason that strategy trading is a good method in trading. There are other benefits as well.

In this article, we will talk about a few obvious benefits of strategy trading.

Let’s begin with the most important one. The most important benefits of strategy trading is it will allow you to sleep well at night when you have a confidence by knowing that your trading strategy has been back-tested and is proven to be successful. No matter what happens in the market during the day or night, you will have a string belief that your strategy will gain you profits eventually.

The other one of the benefits, you are able to choose a market and a trading strategy that is appropriate to your personality. The basic idea of choosing a strategy is to select a market and a trading strategy that you feel most comfort when trading.

For example, traders who want to stay in market all the time will choose different strategies than day traders. If you are a trend follower, then you will choose a different type of strategy than traders who trade the swings.

Another advantage for strategy trading is you always know your financial situation. If you stick with the strategy’s rules, the rules will tell you how to manage your money and how to size your trading positions.

Strategy Traders will always know the maximum equity drawdown associated with their strategies from the results of historical tests. Hence, they are able to determine the capital requirements and prepare enough capital to maneuver through the eventual drawdown. There will be no financial surprises such as your broker give you an unexpected call for additional margins.

I have been providing you reasons why the strategy trading is the most viable way to make money in the markets in this article. And included type of skills and knowledge that are necessary

to be a successful strategy trader in earlier article. I hope they will give you enough motivations and can convince you to turn to strategy trading.

So, what are you waiting for? Let’s go on to the nuts and bolts of finding your viable trading strategies.