What Defines A Complete Trading System

There are many different combinations which make up a "complete" trading system. The most basic trading system is to have one entry rule, one entry value, and one initial stop loss value.

While that is technically "complete", it's not much of a system. Generally your trading system will fall into one of two categories:

1. Where you set both a stop loss and a take profit, and wait for one or the other to be hit; or
2. Where you set only a stop loss, but you gradually move that stop loss to lock in profit. Your stop loss will be taken out at some point, but you hope that by that time it would have moved above your initial entry price.

In keeping with that theory, here is what makes up a complete trading system. Either:

1. Entry rules, entry values, initial stop loss values, initial take profit values; or
2. Entry rules, entry values, initial stop loss values, stop loss management rules, stop loss management values.

With both of those, you are free to add any other settings you like. Of course you can combine the two methods of making money by having both a trailing stop loss and take profit set. But the above are the minimum requirements for orders to be placed, and to give at least a chance of making a profit.

Systems which only go long, or which only go short, are completely acceptable.