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A chess computer for $10 is easily able to beat an average chess player because the computer can determine all possible combinations for the next moves in a fraction of a second and calculate a probability when the volatility goes through the roof. It is always good to know your account details.
In the last years, going all in would have been a sure way to lose all your trading money, so a low risk setting is probably a good way to survive the next financial crisis.
If you have too many positions at the same time, that might cause a big drawdown. If you don’t have enough positions, you might see small profits that might not be worth the investment. Most losses are produced when human traders try to manipulate their own rules to make a revenge trade. With automated trading, you can get real insights within a few minutes. Perfect conditions for entry signals are a rare beast in trading.
Most of the time you will have signals that might be right, but sometimes you will get false signals. Too often, people want to know how much they can make with one or the other entry. But I think that is the wrong question.
What looks like a giant candle in one time frame can be a tiny move in a higher time frame.
An automated system is able to calculate the number of positions based on a few things that are available. These things are the balance, the equity, the current profit, the number of positions that are already open, and some account based calculations.
Stocks are rated in relation of the company management. If the manager does something stupid, the stock value might fall like a stone. If you are good with several languages, you have probably invested a few hundred hours to learn the vocabulary.
Getting better includes this kind of learning process, but with an automated system, you can save a lot of time while you go through it.
Revenge Trades! Only rookies want to make back what they have lost and trade something that is complete nonsense.
Real time trading is much harder than a strategy test because now it is real money and it is your own money.
Trading is a numbers game, and if you really do those advantage and disadvantage tests, you will never have to guess because now you know a simple way to prove or disprove if something is a valid improvement. To defeat the trading beast, it is necessary to set up everything in a way that allows you to have some emotional distance.
Our computer can do calculations better because it is able to see not only the small optical section that we have just in front of our own eyes. You need to decide if you are willing to live with bigger equity fluctuations or if you go with a smaller risk setting and expect a lower profit. If you can overcome your doubts and find the right kind of setting for your own needs, you might be able to become a happy trader.
In my opinion, trading is just about the results, not about the entertainment. You might feel like you are losing money when the profits are not as high as you wish, but that also will help you when you make some unavoidable losses.
For most people, a big potential loss is something totally unexpected, and it messes up their minds.