CFD Trading System Types
Why do some CFD traders consider trading different types of CFD trading systems rather than just just one strategy?
And here we’re not talking about different variations of the same strategy, but different strategies that fundamentally takes different trades because it looks for different types of movements in the stock market.
We’ll get onto this in a moment, but first let’s have a look at why traders would trade different strategies.
The reasons why traders will consider trading different system types is to try to smooth out their equity curve. That is, to try to get more consistent trading returns.
There is no guarantee that this will occur of course.
The principle behind it is non correlation.
When this happens, the aim is that when one system is not triggering trades, or even in drawdown, the other system can be triggering trades and making profits. You are aiming to make it a smoother equity curve rather than an inconsistent one.
This is assuming that you can trade these different markets profitably, as different markets can behave in different ways.
All trading involves a high risk of financial loss, and the information on this site is for general information purposes only and is not financial advice in any form. Seek your own financial advice before taking any action.
All forms of trading involves risk of financial loss.
Also note that CFD trading is not legally permitted in some countries.
Note that this site may have paid advertising or commissions generated for referrals to products and services, and CFD providers made from this site.
We cannot guarantee the accuracy of information, or that any information published has not changed since time of publication.
If and where there are claims of results from using products or services, do not guarantee or in any way indicate that these results are typical or guaranteed.
See our disclaimer for further information.