Jack Schwager’s Guide to Winning with Automated Trading Systems CCoouurrssee MMaannuuaall Jack Schwager AAnn OOvveerrvviieeww ooff TTrraaddiinngg SSyysstteemmss -- AAnndd WWhhyy YYoouu SShhoouulldd UUssee TThheemm 2 TThhee MMoosstt IImmppoorrttaanntt LLeessssoonn ooff tthhee MMaarrkkeett WWiizzaarrddss Benefits of a Mechanical Trading System Six basic advantages of trading systems: Eliminates emotion l Eliminates need for constant decision making l Ensures consistency of approach l Risk control l Same approach can be applied to many markets l Approach can be tested for statistical reliability l 4 DDeeffiinniinngg aanndd IIlllluussttrraattiinngg tthhee LLeeaaddiinngg TTyyppeess ooff TTrraaddiinngg SSyysstteemmss 5 6 7 8 9 10