It isn’t even enough to do
things a few dozen times.

Making decisions based on just a few
trade results is what most people do.

Improve your results and your
chances to make a profit with automated trading.

Do you know how to make sure that your

trading account will
survive the next crisis?

To improve your trading situation,

you might have several ideas
that seem to be common sense.

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.

Your broker will even
make money when you lose.

That is why he encourages you
to trade as much as possible.

He knows that most people will lose money.

That is just a numbers game.

If most traders would make money,
he would soon be out of business.

Most people will lose all their
money within six months or less.

The reason is simple they do
exactly what does not work.

You don’t have to sit in front of your
screen because your computer does all

the work and you have just
to monitor the results.

I think it is a good idea to find out what

financial risk means for you before
you start to trade bigger accounts.

Maybe you are what I call a hope trader,

hoping that something will somehow
make you a profitable trader.

You can download a demo version
and find out if this works for you.

It is not that hard to do that.

There are differences.

So if you use something else,
you will get different results.

But the entry signal is always
looking at past events.

One trading system was a straight
winner for four years in a row.

I could have closed that system at any
point in time before the pandemic

happened, and it would
have been a success.

But I didn’t know what was coming.

And when you look at the system stats

right now, you would probably say
that it is not worth trading.

If I would show you a profit of $1,000,

how much risk would you be willing
to accept to make that profit?

If you flip a coin, you will get heads
or tails at least most of the time.

There might be a very small percentage
rate when the coin lands on the edge.

If you missed to catch it, it might roll
over the floor and under the wardrobe.

Do you find yourself sitting in front

of your screen waiting for a single
trade to become a profit or a loss?

I think for most people the answer is yes.

Programming an algorithmic trading system,
no problem.

Today I have a much bigger problem.

This is a problem that I can’t fix,
and it is the need to use a broker.

Think of gravity.

You can believe that it exists or that it

doesn’t exist, but gravity will affect
you no matter what you believe.

You don’t need to go all in.

Not right away and not for every trading

year. You might ask yourself if it would
not be better not to trade in a crisis.

But that is like trying to avoid a storm
with a sailboat when you are on the ocean.

What is our goal here?

You want to define rules about what you do

and what you don’t do in a way
that your computer can do it for you.

I don’t buy or sell something
because it is outstandingly popular.

I need to admit that I rarely look

at charts and often I
miss to check my systems.

What if one of our system stops to work?

Actually, that is part
of the system design.

If you want to prove or disprove
that something will give you a real market

advantage, just do the opposite
to prove a disadvantage.

The really important test is always
how things work out on a real account.

You cannot change the wind, but you
can change change the set of the sail.