Our Unified Trading Model (UTM) incorporates several tens of thousands of trading rules to enable the model to holistically analyse any particular market. These microfocused rules are highly specificised but below we attempt to provide twenty key ways to ensure that a market participant is able to operate on a level playing field.
1) Analyse a large number of markets but be selective in one's trading.
2) Source valuable information whether interpersonal or analytical.
3) Treat all information as being of potentially equal value unless determinable otherwise.
4) Never distort information to suit one's personal psychology.
5) Contrary trading is solid. Sell at a top and buy at a bottom.
6) Never base positions on the trading dynamics and decisions of the rest of society. Individualise one's strategy.
7) Be selective in your informational sources in relation to the big picture.
8) Develop a rules based system of trading and the monitoring of prices.
9) Be risk averse on lower level positions but trade high on certainties.
10) Only close out winning positions if one's analysis of price is supportive of such profit taking.
11) Do not allow trades to run once the basis for such positions has been undermined by new information.
12) Never ever gamble. All losses that one is able to avoid are the equivalent in impact of winning trades with regard to one's cash flow.
13) Develop logical staking level rules.
14) Always be aware of the market sector phase and undertake chart pattern analysis to determine the cyclical aspects with respect to a trade.
15) Do not recreate trading rules in real time in order to suit one's gut feeling towards a particular market structure.
16) Listen to others but trust yourself.
17) All modelling is based on a fundamental assessment of value. If there is no value in a position because all the information is in the price then one is better out of the market.
18) Only hedge highly corrupt markets where late breaking information absolutely undermines any basis for the original trading position.
19) Be holistic.
20) If you do not know who you are, the markets are an expensive place to find out.
