TRADING SYSTEMS AND MONEY MANAGEMENT by Thomas Stridsman

This collection of excerpts focuses on trading systems and money management, drawing heavily from the book "TRADING SYSTEMS AND MONEY MANAGEMENT" by Thomas Stridsman. The content explores various aspects of developing and evaluating trading strategies, including statistical analysis of trade outcomes, the importance of percentage-based measurements, and proper methods for placing stops and exits. Specific trading systems are discussed, such as the Meander system and Volume-weighted Average system, along with their performance characteristics and methods for testing robustness. The text also addresses the complexities of risk management, drawdowns, and optimizing strategies for a portfolio of markets, emphasizing the difference between profitable and truly effective systems.