What is the difference between a trading system and a trading methodology?
• Systems are software programs that rely on back tested hypothetical situations that are then applied to live markets. Most systems promote their track record. That track record is typically not from real time trading. Systems work well for position trading. Systems identify unique opportunities that occur on occasion in different markets. Systems do not perform well for short term intraday trading. A methodology is a set of rules that you follow. A methodology follows a set of principles based on technical analysis that can be applied to any market condition or time frame.
