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Trading is like the weather. The fact that the sun is shining in the summer doesn’t mean it couldn’t rain. Today my results are much better. I don’t look at charts anymore and my system does what it should do. Is there something that you can do on your sailboat if a wind changes?
I guess I could change the set of the sails when the wind is too strong, or I could use the engine if there is no wind.
Ten years are the benchmark for my systems. So on my real account I more often use a much lower risk setting. You need to find a solution that will fit for you. That might take some time, but you need to do it.
You can greatly improve your trading results if you know how to use the law of big numbers and the law of regression to the mean.
Sometimes you want to exchange buy and sell signals to prove that a reversed signal is a market disadvantage.
Pick an affordable account size and you can adjust your system settings to avoid painful loss sizes. In some years you can increase the risk setting to a higher value. In other years you might need to decrease it. If you have a look on the chart, you will see that the balance and the equity are calculated for each tick that comes in. Continue to improve your trading results by using the endless sequence to build and improve an automated trading system that fits your needs.
Trading heuristics is like selling Christmas trees in January because the sales in December have been so good.
One of my brokers didn’t survive January 2015. In the morning at about 10:00 am, my account looked fine. At lunchtime, the broker had massively risen his margin requirements. That caused a mass closing of open positions. The financial industry has all the experts in the world, but this is not why they survive financial disasters.
Forex earthquakes do happen from time to time.
Something like the Brexit votum could totally change the game for you and your system. In that case, you want to be able to adjust the risk and an automated trading system is able to do that. It doesn’t matter if you think it is possible or not, but wouldn’t it be interesting to find out if you are right? The trick is to achieve positive results even if the trading conditions are bad. Back testing can show you how your system would have performed during the Brexit period.
When you think of trading, just think of a sailboat where you would set the sail according to the weather conditions. The first fundamental law is the law of big numbers. It is so important because it makes it possible to improve the probabilities for a system. Automated trading is the only way to stay in the markets whenever you want. The reverse test is to do the opposite of what you think is working, to prove that it really produces a measurable advantage or disadvantage.