Trading Systems (Part II)
In simple terms, it is very difficult to adjust a mechanical trading system to a different market conditions if you are not the author of that system. It is very difficult to develop a trading system that can adjust to different market conditions.
You must know this that technical indicators also lose their effectiveness overtime as the market conditions change. So how do you cater for this fact that markets keep on changing all the time. By developing a trading system that uses different trading strategy under different market conditions. For that, you will need to develop a diversified trading system consisting of a set of trading systems that can be used as a basis for a specific trade tactics at any given moment.
Trading systems based on these principles can be complex and adjustable. Such a diversified trading system can be used according to a trader's free choice and considering the individual situation.
This optimization can provide an effective evaluation of market shifts and trends at any given time. Such a diversified trading system can be optimized for current market condition and the trader's resources at any given moment.
The only thing necessary is to find the tools for the probability evaluation for the trading system with maximum accuracy and minimum time. The optimal solution could be a diversified trading system based on the natural market features and regularities. A trading system needs to be evaluated by calculating its win ratio over let's say at least 100 trades.
Developing a mechanical trading system with a set of trading rules that you can apply rigorously in making your trading decisions in any market condition should be your goal. Mechanical trading is good in the sense that it helps you avoid emotions in making your trading decisions. Emotions are your biggest enemy in trading. Fear and greed will always force you to make wrong trading decisions. Have you ever heard about the turtle trading experiment?
Turtle trading experiment was conducted to demonstrate the fact that it's not the trader that matters; it's the trading system that matters. If you have a good trading system, you can become a highly successful trader.
As a young person, you must have learned that just by observing good players play their games you could improve your level of playing tennis, golf, badminton, swimming or for that matter any type of game. What you need to do is learn from successful traders and try to copy their trading systems.
The same principle applies in trading. By observing the trading systems of successful traders you can also develop your own highly successful trading system. You need to take a look at these 25 forex trading systems that had emerged on the top of more than 5000 traders who had taken part in a recent forex trading championship. The best forex trading system had an ROI of almost 3000% in one month. - 23208
You must know this that technical indicators also lose their effectiveness overtime as the market conditions change. So how do you cater for this fact that markets keep on changing all the time. By developing a trading system that uses different trading strategy under different market conditions. For that, you will need to develop a diversified trading system consisting of a set of trading systems that can be used as a basis for a specific trade tactics at any given moment.
Trading systems based on these principles can be complex and adjustable. Such a diversified trading system can be used according to a trader's free choice and considering the individual situation.
This optimization can provide an effective evaluation of market shifts and trends at any given time. Such a diversified trading system can be optimized for current market condition and the trader's resources at any given moment.
The only thing necessary is to find the tools for the probability evaluation for the trading system with maximum accuracy and minimum time. The optimal solution could be a diversified trading system based on the natural market features and regularities. A trading system needs to be evaluated by calculating its win ratio over let's say at least 100 trades.
Developing a mechanical trading system with a set of trading rules that you can apply rigorously in making your trading decisions in any market condition should be your goal. Mechanical trading is good in the sense that it helps you avoid emotions in making your trading decisions. Emotions are your biggest enemy in trading. Fear and greed will always force you to make wrong trading decisions. Have you ever heard about the turtle trading experiment?
Turtle trading experiment was conducted to demonstrate the fact that it's not the trader that matters; it's the trading system that matters. If you have a good trading system, you can become a highly successful trader.
As a young person, you must have learned that just by observing good players play their games you could improve your level of playing tennis, golf, badminton, swimming or for that matter any type of game. What you need to do is learn from successful traders and try to copy their trading systems.
The same principle applies in trading. By observing the trading systems of successful traders you can also develop your own highly successful trading system. You need to take a look at these 25 forex trading systems that had emerged on the top of more than 5000 traders who had taken part in a recent forex trading championship. The best forex trading system had an ROI of almost 3000% in one month. - 23208
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. Discover a Revolutionary Forex Robot Trading System. Read about a Forex Trading System with an ROI of 3000% per month.
posted by X - Men @ 8:11 AM
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