ntroduction

The currency markets are attractive to all types of traders including individual
day traders,
trading companies, financial and non-financial companies, banks and governments.
They
trade 24 hours a day from Monday morning in New Zealand until Friday night in
America. Markets with strong movements like the British pound offer you all the
possibilities to develop any type of trading system from any different idea on a
ny time
scale.
In this chapter we will not present the very best trading system, which promises
the
highest profits. Instead our goal is to show you a trading system which is based
on a
sound idea and improved for a high robustness. As an aid to understanding our co
ncept
of trading system development you will find in the following pages a step-by-ste
p
explanation of how a new trading system is developed and tested for stability.
As an example we choose a trend-following system with a breakout component. We t
ake
this system and show how you can improve it up to become a profitable trading sy
stem
in the following steps.
3.1 The entry logic and code. How to improve a normal moving average crossover
system with a breakout filter.