This is my TRT-POV on Module 12 – Building a Trading System. This is where I discussed and gave example on how to build a trading system step-by-step using The Responsible Trading System worksheet to put all the learnings that I have shared in all the Modules together.

1. The Responsible Trader Lessons
The Responsible Trader Lessons
The Responsible Trader’s - POV
Module 12 – Building a Trading System

2. The Responsible Trader Lessons
The Responsible Trader Lessons
The Responsible Trader’s - POV
• The Responsible Trader's POV (Point of View).
• These are my notes, my own additional research and studies on the
Topic that I posted, and my personal observations and opinions that I
am sharing to further enhance our knowledge and understanding.
• Some of these were previously posted on “The Responsible Trader”
thread, Stock Market Pilipinas (www.stockmarketpilipinas.com). This
is the latest version of previous posts I made.
• Some of these plus further explanations and discussions will be
appearing in my forthcoming book “The Responsible Trader.”

3. The Responsible Trader Lessons
The Responsible Trader Lessons
First of all congratulations! If you have gone this far and really
absorbed all the lessons and the TRT-POVs that I have shared with
you, you are really on your way to becoming a Responsible Trader
without even knowing it.
A Trading System is simply a group of specific rules or parameters
for conducting a trade. The process of building a trading system
has been adequately described in the MCTA Video. To make it
more understandable and easy to comprehend, I will describe how
it is done the Responsible Trader’s Way by giving an example.

4. The Responsible Trader Lessons
The Responsible Trader Lessons
DISCLAIMER:
What I am going to discuss and the remaining part of this presentation is just an
example to partially explain The Responsible Trader’s Trading System. The example will
cover taking one position only. Averaging up or down and full details will be presented
in my forthcoming book, The Responsible Trader. The Charts, Analysis, Worksheet and
other data presented are for discussion purposes only and should not be taken as a
solicitation, recommendation, promotion or endorsement of any security.
Trading is a personal thing and the rules I have established may not be applicable in your
case. I may or may not have the stock I am discussing. What works for me might not
work for you. Always trade at your own risk level that is tolerable to you.

5. The Responsible Trader Lessons
The Responsible Trader Lessons
I cannot think of a better way of summarizing everything that we learned than to share with you how I
applied all these lessons in my actual trading.

6. The Responsible Trader Lessons
The Responsible Trader Lessons
We usually start the trading month by doing a review of our trades. We classify them into
four:
1. Best Trade - with a trading plan based on a high probability setup, fully implemented
and made money.
2. Good trade - with a trading plan fully implemented. Take profits when target price is hit
and cut losses when stop loss is hit. Whether money is made or not is irrelevant. What is
important is sticking to trading plan because it helps develop good trading habits.
3. Bad Trade. - with a trading plan but failed in implementation. Ended up being an
investor instead of a trader.
4. Worst Trade - without a trading plan and lost money.

7. The Responsible Trader Lessons
The Responsible Trader Lessons
After the performance review, we analyze the index, and the sectors where the stocks we intend
to trade belong. Based on our studies and the list of stocks in our daily publication of Top Ten
Smart Money Moves, we have chosen MEG to be our example. MEG belongs to the Property
Sector and our analysis for the Property Sector is indicated here:
Chart courtesy of Amibroker Charting Software

8. The Responsible Trader Lessons
The Responsible Trader Lessons
Then we analyze the stock itself, MEG
Chart courtesy of Amibroker Charting Software

9. The Responsible Trader Lessons
The Responsible Trader Lessons
Then we analyze the stock itself, MEG
Chart courtesy of Amibroker Charting Software

10. The Responsible Trader Lessons
The Responsible Trader Lessons
Based on our Analysis, we can now start checking whether it meets the criteria we have set in
our trading rules:

11. The Responsible Trader Lessons
The Responsible Trader Lessons
Since MEG has passed our trading rules, we now prepare our trading plan. This is how
we are going to do it:

12. The Responsible Trader Lessons
The Responsible Trader Lessons
In order to have complete information for our trading plan, let us use our Fibonacci tool, for
establishing possible retracement points that would serve as support and also for validating the figures
automatically computed by our Worksheet.
Chart courtesy of Amibroker Charting Software

13. The Responsible Trader Lessons
The Responsible Trader Lessons
This is our completed Trading Plan. Let us go over the important figures one by one.

14. The Responsible Trader Lessons
The Responsible Trader Lessons
There you have it everything in one piece. You have your Trading Rules,
Trading Plan, Trading Log and Performance Review all in One. I have
designed the system in such a way that you can modify the trading rules
and adapt it based on your personal needs. This worksheet will be
included as part of the book I am writing and a soft copy will be emailed
to you when you email to me copy of the Official Receipt of the book.
We will negotiate for the book to be made available through the leading
bookstores. However, if negotiations do not push through, we will make
sure that you will be able to order the book through our website.

15. The Responsible Trader Lessons
The Responsible Trader Lessons
For your information, in connection with my Advocacy, Responsible Trading, I have established the
following in order to reach out to you more effectively and serve you better.
Please visit, like and share:
My Blog:http://www.theresponsibletrader.com– where I write and share lessons on trading and my
thoughts about trading in particular and life in general
My Facebook Page: https://www.facebook.com/theresponsibletrader – where I share what’s on my
mind and make posts to groups where I am a member of
My YouTube Channel: https://www.youtube.com/theresponsibletrader – where you can view and
download my TRT-POV (The Responsible Trader’s Point of View) and other videos I intend to make
My Slideshare: http://www.slideshare.net/TheResponsibleTrader – where you can view and download
copy of the Powerpoint Presentation of my TRT-POV (The Responsible Trader’s Point of View) and other
presentations I intend to make

16. The Responsible Trader Lessons
The Responsible Trader Lessons
My book: “The Responsible Trader – a
Thinking Person’s Guide for Trading the
Philippine Stock Market” is now out for
distribution. The price of the book is
P1,200.00. It costs less than attending a paid
seminar but you get more value than
attending one.
The book can be obtained through our
website: www.theresponsibletrader.com.
Just click on the book icon appearing on the
Featured Ads Column.

17. The Responsible Trader Lessons
The Responsible Trader Lessons
Book may also be obtained thru the branches of our publisher, Central Book Supply as follows:
• Quezon City (Main Branch): 927 Quezon Ave., Quezon City (TEL. 372-35-50)
• SM MEGAMALL: 5th Level Bldg. A, SM Megamall, Ortigas Center, Mandaluyong City (TEL. 638-10-88)
• C.M. RECTO AVENUE: Ever Gotesco, Manila Plaza Mall
• LYCEUM MAKATI: 109 SDC Building Leviste St., Brgy. Bel Air Makati, Manila (TEL: (632) 887-52-45
Those buying the book from these branches are enjoined to send scanned copies of their Official Receipts to
The Responsible Trader email: ninjatrader919@gmail.com to claim the following freebies:
1. Ichi Moku Kinko Hyo Analytical Framework which will enable you to read Ichi Moku Kinko Hyo Charts as
simple as reading A-B-C.
2. Fundamental Analysis Powerpack. These are worksheets I used when I was still working as Financial
Management Executive in the corporate world
a. Business Valuation Model_Discounted Cashflow Analysis
b. Financial Ratio Analysis
3. Responsible Trading System Worksheet. This is your Technical Analysis, Trading Plan, Trading Log and
Trading Performance Review ALL-IN-ONE.