Adrian Reid explains two broad classes of trading systems: single-instrument systems (rules applied to one ticker such as SPY or QQQ) and portfolio systems (scan a market universe, select qualifying stocks, and manage them as a portfolio). He emphasizes that systems are designed for specific universes (e.g., Australian market, US market, NASDAQ-100, S&P 500) and cautions against subjectively applying a system to an arbitrary single stock like Apple. He also references a 'Trader Success' offering containing 27 systems with varying target universes.
Chapters
There's several different ways to do this. So there's what you call what I call single instrument systems, and there's portfolio systems. A single instrument system is where you have one ticker and you put the rules on that one ticker and you buy and sell that one ticker. Maybe you have a system that trades the SPY or the qqq. A portfolio system is a system that scans the entire market, finds all the stocks that meet the buy criteria and assembles a portfolio of stocks and. And manages that portfolio of stocks according to the buy and sell rules. So you can do either of those. I have both. And what we don't do is say, oh, I like Apple. Let's take this system that Adrian gave me and apply it to Apple. We don't do that because that system wasn't. You may not have been designed to just trade that one stock. This is not a recommendation to trade Apple stock, by the way. We don't have to make a subjective decision about what ticker to apply the system to. The system comes built in with the universe of stocks as part of its rules.
So I've got system in the trader success system. You know, I said there's 27 systems that you get access to, right? Some of those trade all stocks on the Australian market, all stocks on the US market. Some of them trade just the TQQ or just the SPY. Some of them trade just the stocks in the NASDAQ 100. Some of them trade just the stocks in the S&P 500. Make sense. So it's the universe that you trade is system dependent. The system is designed to work on that universe. And we don't go mucking around trying to, you know, we don't apply it to our favorite stock because that's where the subjectivity comes in and it kills it.
