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Chapter 31, Part I. Mechanical Trading System Intro. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 27, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Commander in Pips: This is specifically a computer program that makes trades by itself without human intervention, but by a predefined algorithm, that was developed by a trader. Currently many trading software platforms have built-in programming language – Omega trade station, MT4 to name some. They have specific trading commands (buy, sell etc) and let you to write programs, i.e. mechanical systems that will make trades. You can set all limitations and use any indicators for creating a program. From that standpoint the program is the same as an analytical approach. Also it allows you to create your own indicators.

    Pipruit: I see. But may be it will be simpler just to purchase this system. I see a lot of offers on the internet – just Google for them…

    Commander in Pips: In fact this could be done. But I give you some reasons why it makes sense to do it individually by yourself:

    - First, you will find that a lot of “developers” have a “Holy Grail” of trading for sale. Most of them offer “Super-Duper” profitable system that makes 1000%+ of profit annually and costs just some inconspicuous 2-5K USD or even a lot less. On the first view you might think that since this system is so profitable you will earn your money back easily and fast.

    - Second some questions appears due to recent statement, and the most reasonable are – if this system is so profitable, it should be so risky, since, as we know that to make high profits, a system must take high risks. Another question – if it is so profitable and if they so confident with it – why do the developers distribute it at all? Why do they not use it for trading themselves?

     
    #1 Sive Morten, Dec 27, 2013
    Lasted edited by : Oct 9, 2016
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