Please accept YouTube cookies to play this video. By accepting you will be accessing content from YouTube, a service provided by an external third party.

YouTube privacy policy

If you accept this notice, your choice will be saved and the page will refresh.

If you want to improve your results and avoid to make emotional decisions, an algorithmic trading system can be a good solution.

So how do you know what works and what doesn’t work? Trading is not an exact science. The result depends on several factors.

Some people try to find stocks that promise an above average performance, and investment magazines introduce management insights for promising companies.

You want to make the profit to feel good, but actually most of the time emotions are bad for good trading results.

Financial risk is something that makes all the difference. I usually recommend to start with a very low risk and increase it later, if everything works out! From time to time, things simply do not work as desired. There are some common insights that should work, but forex charts don’t care about common sense.

None of the socalled experts predicted what the Swiss National Bank was going to do in January 2015.

Actually, it is not so hard to find the right answers to all the questions. But it depends on you and your will to put in the time, money and effort it takes to become a successful trader. If you see a $200.000 drawdown on your real account with your real money, you would probably need therapy. Find something that you can believe in. I don’t care if it is my stuff or the content from anybody else, but it needs to be a good fit for you.

No matter how high or low the price goes, it always is visible. The reason for this is because charts are not real.

I might allocate $200 for each microlot trade on standard accounts. So a $1000 account would only be allowed to have five open microlot positions.

Whatever you do, you will get a measurable result. Afterwards you can change something. I always change one thing, not several things.

Network outages? No problem for me, because I have designed my trading system in a way that network problems will not be harmful.

Using a demo account for at least the first three months is a good idea, and after that period you can upgrade to a socalled cent account. That is real money, but less risky. Often I couldn’t improve anything, so I needed to start over again and try another approach.

You probably always want to improve the situation for a better outcome, but sometimes you will have to stand drawdowns or time spans where nothing happens.

For algorithmic trading it is important that you need to find a way to deal with different conditions.

If you wake up in the middle of the night and ask yourself if your account is still alive and well, you should consider to lower your trading volume or your account size. I like netbooks for automated trading because they don’t have much power consumption and they are cheap. Today I use some additional solutions like compute sticks and virtual machines.

Most traders have a fear problem, but why?

Trading is easy to try, easy to understand, but often hard to do when it is real money.