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Chapter 10. Trading Systems > The Five Questions for a Trading System

The Five Questions for a Trading System

Answer these five questions and you have the core components of a Trend Following trading system. You are on your way to having your edge:

Sound investment policy is really about intelligent risk management. There is no such thing as a risk free investment. The real issue is not whether you want to take risk, but which risks and how many of them you are willing to accept.

Jim Little and Sol Waksman[11]


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