What is Japanese Stock System Trading? - Japanese Stock System Trading Basics Course Part ①

What is Japanese stock system trading?

I am a securities analyst and serve as a seminar lecturer on system trading, Taitorai Fair

do Corporation's Takeshi Nishimura (Nishimura Tsuyoshi). In this course, we will explain so that everyone who views it can understand “system trading” from the basics, in simple words and expressions. Please,we hope you’ll stay with us until the end. The theme this time is “What is system trading?” Now, let's get into the content.

In recent years, system trading has quietly become a boom. I myself practice system trading. However, I am by no means opposed to other investment methods. For example, buying undervalued stocks and holding them for the long term, a so-called value investing, is also a valid investment method in my view.

Strictly speaking, the term system trading itself does not refer to a specific trading method. System trading is“to formalize patterns that were effective (profitable) in past markets” and to trade using that method.

In other words, you actually assemble various rules such as “strong in down markets” or “strong in up markets” to create an ideal system.

The appeal of system trading is, above all,

“to be able to trade using rules that have been validated by historical data as effective (profitable)”

.

Therefore, once you find a rule that works effectively, you can then repeatedly trade mechanically, achieving near-permanent profits. However,

there is also a problem. The problem is how tofind the “rule that works (profitable)”

In other themes of this course, we also cover things like “tips for discovering effective rules.”

This is a wonderful opportunity, and we would like everyone to acquire the appeal and practical methods of system trading during this session.

The next theme is “What is needed for backtesting — Japanese stock system trading basics Course ②.”