There are generally two types of trading: discretionary and systematic. Discretionary trading is subjective (based on opinion) and largely dependent on intuition. Systematic trading is objective (based on fact) and removes all interpretation and bias from trading. By setting a trade plan live to run its course allows positions to execute without reacting to normal intraday market volatility. At Maxon Capital Group, we teach you to RESPOND – NOT REACT to the stock markets by creating a trade plan only once with entries, stops, and targets in place before any positions are open. Open positions may be held anywhere from a few days to a few weeks at a time.
Systematic trading is a type of trading that is based on a set of rules or algorithms. This type of trading is becoming increasingly popular as it offers a number of benefits over traditional discretionary trading. With our rules-based trading systems, our strategies may hold positions from several days to several weeks until the target prices are reached and the rules trigger a pre-calculated exit.
Advantages of systematic trading
One of the biggest benefits of systematic trading is that it can help to remove emotion from the decision-making process. When traders make decisions based on their emotions, they are more likely to make mistakes. Systematic trading, on the other hand, is based on a set of rules that are not influenced by emotion. This can help to improve the consistency of trading decisions and lead to better results.
Another benefit of systematic trading is that it can help to improve risk management. When traders make decisions based on their emotions, they are more likely to take on too much risk. Systematic trading, on the other hand, can help to identify and manage risk more effectively. It provides you with a calculated plan with specific entry, exit, and target positions based on historic data and intraday price movement. This can help to protect traders from losing money and improve their overall profitability.
Finally, systematic trading can help to improve trading efficiency. When traders make decisions manually, it can be time-consuming and inefficient. Systematic trading, on the other hand, can automate the trading process and make it much more efficient. All the time consuming work is done during development of the trading strategy and backtesting variables.
Overall, having a systematic trading plan helps give users confidence to learn how the markets work. Learning how to trade the stock market shouldn’t have to be complicated. We send out daily chart analysis and market recaps that showcase our trade setups. These chart setups may contain markups with technical analysis to help teach and guide our methodic trading plans triggered by our programs.
Technically, most traders don’t actively “trade” after markets are closed. There are pre-market and after-hours trading that some brokerages allow, but not all will have this service. The way our strategy models work, they trigger position setups to execute on the following day at market open (MKT). This allows us to better evaluate the market and let the data settle for the day. This also means traders aren’t tied to their computer all day to monitor their positions.
Stock markets are open for active trading between the hours of Mon – Fri, 9:30a – 4p ET. Each day after markets have closed, our programmed trading systems run the intraday data to find high probability setups that follow trend, momentum, and relative strength so we are able to ‘ride the trend’ for potential gains. Some brokers may allow market trades to execute and move after hours. However, our models allow for positions to execute anytime the following day as long as the remaining exit prices are adhered to. Once we set our order, we let it run until our stops are hit. We execute our plan and let the markets work for us.
Please be aware that Maxon Capital Group does not place any trades or open any brokerage accounts for you. This is merely an educational service to help provide information and teach users how to read charts, set plans, and learn market lingo. TRADE AT YOUR OWN RISK AND EDUCATE YOURSELF BEFORE PLACING ANY OF YOUR OWN TRADES!! Maxon Capital Group does not promise or guarantee any positive trade results. We are NOT Financial Advisors and we will NOT offer any financial advice on how to manage your portfolios. Any trades placed by users are done so by themselves within their own brokers. We do not manage portfolios or funds and all material published is for educational purposes only. Maxon Capital Group employees may or may not hold all or any of the positions listed within the Trade Tracker.
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CONVICTION. EXECUTION. DISCIPLINE.