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We all know that there is good weather and bad weather, and from time to time a storm is unavoidable.
A big problem with automatic trading is that we humans are used to certain assumptions being true. That means we have clear ideas about what things should happen in what order.
Common sense doesn’t help anything. I had to find out that actually a lot of the stuff that is taught doesn’t work.
You can make mistakes and you don’t risk all your money before you learn from your mistakes.
And with automated trading, you don’t need to rely on hope. I would say that you have much better options. For example, you can measure results, change one thing and measure the new results again. If your results are better, you might have found an improvement.
No, I don’t think that there are people who would like to lose money. But I think that everybody has different circumstances to consider.
I think fear of losses is the reason why brokers make so much money. It is easy to trade when everything works out as desired and all you see is profits. Why should you trade something that isn’t really proven? With automated trading you can use historical data and let your trading boat sail through the greatest storms in the world. Trading automated and strict rules makes it less exciting for traders.
But if you are looking for entertainment, you probably should consider Netflix. Humans are emotional creatures, otherwise nobody would watch any movie because you simply wouldn’t be interested in what happens to the actors.
It took me a while to figure that out. But my first profitable system back then was really a bollinger band system.
We probably could increase the risk setting, but why should we do that when everything works well? If you resize the chart, you will see that the candles are also resized. Depending on the view you currently have, you might see different things than other traders.
We all have seen banks disappear in this century. For me, this is a good proof that nobody is able to predict the future. So my algorithmic trading system is doing something else.
Often people start to manipulate their own system because they can’t stand the fear.
Excitement is not a good reason for a trading system. Actually, I like things to go up slow and steady.
The thing I consider to be important is the result. I have tested several different entry signals, stop losses, risk settings and so on.
I prefer to trade several small positions instead of one big position, because that is a good way to trade a currency pair on different levels.
To improve something, you just need to do it several thousand times. That is also what sportsmen do to take part in the Olympics. I never get a single trading account big enough to affect my family’s lifestyle in case of a total loss. If you want to program a few lines, then there is also a suitable video on our YouTube channel or our website. Let’s assume you do a back test and the results are very promising.
You do ten more backtests with different currency pairs and you can find out if you still think that you found something that would give you a market advantage.
With your real account you are the one to decide when you want to close all the open positions, so it is your responsibility.
You might already have good results on your demo account because it doesn’t cost to you any money.