Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

Learn How To Day And Swing Trade Using Stochastic, MACD, Bollinger Bands Like A Pro

How To Use A Trading System?

Most professional technical traders use one or two trading systems that they have carefully built or purchased.  Though retail traders do use sometimes a trading system only few know how to use a trading system

Today I will explain how to use a trading system like a pro.
Let's get started.

Common Types Of Trading Systems

There are scalping, day trade and swing trading systems.  Please note that I am not talking about a trading robot but mechanical trading systems. 

I am dealing with written trading rules that reveal what one must do to buy and sell a financial instrument more profitably.

So the first thing one must do is to buy or build appropriate and robust trading systems that are based on carefully selected market principles.  Note also that a trading system that is not rooted onto one or more market principles is truly useless. 

One of the principles of the TSTW 24 day trade system is that a bullish trend is in place when the price is exhibiting higher lows and higher highs above the moving average 100.  This is true on every time frame, and for every financial instrument.  

The opposite is also true for a bearish trend.  It is simple, but powerful because it is a market principle.

Note that the financial markets do not fight its own principles.  Never, it is impossible.

The next time you purchase a trading system, just ask the seller the principles that govern the system.  If they do not know then do not bother to use the system.  I am not saying that the system will not work, but it will surely fail as time passes because it is not tuned into any market principle.  

Sometimes, a trader can build a valid system without knowing the principles.  It is sad because one will only get the best out of the system if one knows the related market principles.

The TSTW SYS 008 swing trade system is based on a financial market cycle principle.  That is all I will say in a public place. 

All in all, one wants to buy a valid, but also appropriate trading system that works.
A day trader must use a day trading system, but swing traders must use a swing trade system. 

Step One To Use Trading Systems

The step one is to draw channels and key levels on the monthly chart. One wants to only trade trading setups that are on the edge of one those monthly key levels.  A high probability trade setup often takes place on the edge of an influential key level, trend line or channel.  

Whether one is using the daily chart trading setups, one must go first to the monthly chart.

Step Two To Use A Trading System

Adhere to the trading drill.  Use one time frame for the trading setup.  Another time frame for the trading signal, and a different time frame for the entry.  That is crucial.  

Even is the system fires trading signals, one ought to find out which trading setup has caused the trading signal.  

Never take a trading signal without checking if it derives from a valid setup.   Verify also if the entry offers a low risk.

Check what is a different times trading method.

Step Three To Use A Trading System

A day trading system must only be used during the first two hours when London or New York is open.  Better to enter a swing trade on Tuesday than on Monday.  Avoid placing swing trades on Fridays.

Step Four To Use Trading Systems

Be sure to read in full this article about trading tips for technical traders.
That is about not to use a normal trading account.  The game of trading has dramatically changed.  

I leave it to you in your own time.

Step Five To Use Trading Systems

One must use a demo account to test and retest a trading system before going live with real trading fund.  By doing so one will familiarise oneself with the system and also gain skills and experience.  

One must begin to use the system only when one has mastered it.  One wants to like, master and understand the system by all means.

Step Six To Master Trading Systems

Always review losing trades even those that are really nasty.  It does not matter what went wrong, one must investigate it without being emotional.  

After one has cooled down, one ought to rationally find all the factors that lead to the losing trade.  It is never just one factor.  One will usually find two to three factors.  Deal with them.  Rectify them and never repeat them again.

Be aware of the six biggest trading mistakes.  Traders love those mistakes so much that they want to keep repeating them without doing anything about them.  Right?

Step Seven To Using Trading Systems

Never change the system or its rules.  Use it as it is meant for without bending the rules.  Sometimes a trader may decide to change the system  a bit  after few losing trades.  

Please do not get into that because losing trades do happen for many reasons.

Step Eight To Use Trading Systems

Make a list of all the high probability trade setups that have generated the best trading signals.  It could be one or five trading setups.  Keep them and only trade those.  Nothing more.  Those are the winners. Right?  

Well, focus on those winners and become a specialist of those only.  Go a little bit deep into understanding why those were really winners.  The more understanding, one gets, the more, one can now own the system. 

As they say: know thy setups and trade only thy setups.

Step Nine To Use Trading System

This is the last step but not the least.  It is in fact the most ignored step.
The most important trading tool is the ability to trade like a pro.  One may not buy that one (may be the artificial intelligence in the future). So please, keep upgrading your knowledge, skills and speed.  

I will be discussing the topic of trading speed in another article.  Please stay tuned.  As one becomes more and more capable in trading, one will begin to use a valid trading system  more profitably.  Never stop learning, practising and asking pertinent questions because trading is a competition at all times.

I think I am done with this topic for now.
If there is something new, I will surely update the article in due course.


A valid trading system will help a technical trader stay focused and disciplined if he or she knows how to use it.  A technical trader will get the best out of a trading system that work as he or she finally owns.  

Therefore, it is important to rise from the stage of buying it to the next level of owning it.  Really, owning the trading system means understanding, mastering and effectively using it in both normal and challenging financial markets environment.

Thank you for reading this article.  If it is useful to you, please share and bookmark it.  Also, please say few good words about us in your favourite trading forums.  I will really appreciate that.

I wish you the very best.
Happy Trading

This article is written by
George Beaulieu
Founder Of