Friday, May 6, 2011

Forex Trading Systems - Are Computers Better Than Humans?

Can you really make money by following computerized forex trading system? So a while ago I bought one and knew the vendor and knew one of his clients was $ 1,400,000 with her ​​real money in just a few years. Now it sounds great - but there is a catch with computerized trading systems ...
to catch them perform - let me explain this in more detail
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I bought the system and consisted of one parameter, and that's it. logic is easy to understand and you could see why he was doing it long term - but do not know what the
?
I could not make a system in accordance with the signals, and this is a common problem.
My reason was that at the beginning of my career, and I trading is trading money I really can not afford to lose - I put my contribution to ruining the system and got my reward -. huge loss
is used right, you may say that it is - but there are other problems why traders lose
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Most systems sold are junk
I know that now with my experience trading are 99% junk and will never again produce the gains they make on the track records presented - Why
Well, at least one I traded had no real track record - but most are sold today, are made by marketing companies that are simulated in hindsight track record - and all we can do that knowing the closing prices

They are usually based on rules that are not detected, or rules that were curve fitted (if you do not know what curve fitting is to look at my other articles), a trader who thinks he will get rich zanekoliko hundred bucks or so gets wiped out - a lesson learned
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for the trading system, you really need to look for a real time track record, but even with this, you face a problem:
withdrawal
withdrawal is a problem with any system. These losses are on paper, does not hurt like they do when you lose in real time.
If you followed the forex trading system always assume the worst amount of front (and very little good amount to less than 30%) so that, when studying the track record, do not look at the average amount, look at the worst to the top of the valley amounts the amount and period of recovery and accept the fact that it will happen - that's the way things can only get better
.
After Market
If you follow a purely mechanical trading system do not watch the news!
Even though we know its wrong, and reflects the herd, when the trading system opposed to those sensitive news, you have a discipline problem and believe me, those news can scare the hell out of you and make you feel stupid for following even the best systems.
Pay attention and you are tempted to interfere with the system, and this means the end of your system.
The mechanical trading system is hard, and you must be disciplined at all times.

you have to ignore the news, drawdown cheerfully accept and understand the logic of the system and is ideal to instill confidence, have a real track record, they know the system has at least worked, and is based on sound logic.
If you can do it up, then the mechanical systems are a great way to earn money.
If you can not, then you should create your own with as much human input, if necessary, to make you feel comfortable.
system, I traded in and lost, was for many people, and its logic is timeless - but I made no money with him who taught me one of the greatest lessons of my forex trading career
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