3 rule based trading concepts to never forget

To succeed in rule based trading, it is crucial to understand certain key concepts. Here are three such rule based trading concepts that you should never forget. First up, Moving Averages. These indicators are primarily used in the technical analysis of a security. Moving Averages give a better idea of the price movements of an asset by cutting down unwanted details. Scalping is another important concept to remember. It is a trading strategy where an asset is bought and sold within a very short period of time. Scalping relies on making fast profits from small price changes. And finally, backtesting. Here, you test a rule based trading model against historical price action movements of an asset. It allows you to gauge the performance of your model by using past trades. So, that’s about it for this module. But as always, keep reading and keep learning with Smart Money!