So What is a Trading System?

 
What most people think of as a trading system, Van would call a trading strategy that consists of
seven parts:

1. Set-up conditions.
2. An entry signal.
3. A worst-case stop loss.
4. Re-entry when appropriate.
5. Profit-taking exits.
6. A position sizing algorithm.
7. Multiple systems for different market conditions (if needed).

Indicators are Broken Down into Five Types:

 Trend

 Volume

 Overbought/Oversold

 Momentum

 Volatility

Examples of Each Indicator Type: 

Trend = Moving Averages, ADX

Volume = On-Balance Volume, Accumulation/Distribution

Overbought/Oversold = CCI, RSI

Momentum = Stochastics, Rate of Change

Volatility = Bollinger Bands, Keltner Bands