Part I. Mechanical Trading System Intro. Commander in Pips: So, by now we have spent a lot of time and learned much useful information about tools and methods that could be applied in trading. So far we mostly discussed analytical approaches to trading, where the major tool is the trader himself. A trader has to not just know tools and methods of analysis and create his or her own trading plan, but also he or she has to follow it with diligence and rock hard discipline. Also a trader has to control emotions and so on. All of these we’ve discussed. Today the time has come to turn a bit in another direction – to a mechanical trading approach. We’ve given you some hints in previous chapters and now we will discuss this topic with more scrutiny. Pipruit: Cool. But why do we need mechanical approach at all? Personally, I think that an analytical approach is more suitable for me. Commander in Pips: And have you started to trade already? Pipruit: Not yet. Commander in Pips: Hm. How have you decided then, that the analytical approach is better? Pipruit: Well, probably I just feel it. But maybe this feeling comes from a lack of knowledge about the mechanical approach… Commander in Pips: The second answer seems more reasonable. A mechanical approach has a very big advantage that for some type of traders that could become a determinant of which way to chose to trade. Mechanical trading excludes all personal emotions and biases. It just follows an algorithm. For those who are friendly with programming, have a technical mind set, but have an absolute lack of discipline – a mechanical approach to the markets could become the only way to trade. Pipruit: What is a mechanical system in a few words?