TRADING SYSTEMS
I traded the system manually. I made some money, but I also lost money. I got investors on board. The system evolved. Mercifully it did not lose money, but drawdowns were high and my investors panicked. It is one thing to know the high and low of a days trading, but if you cannot work out which comes first you get into a guessing game with the market. I rr i t a ti n g l y enough, the method was useable and accurate 70% of the time. The other 30% was gut wrenching anxiety.
It gradually dawned on me that I could not manually trade the system and perfect it at the same time. It becomes a pat head/ rub belly scenario. For me, trading became a waste of time unless I had a method which was 100% accurate. A tall order, but trading FX is not for the feint hearted.
So – back to the drawing board and true enough – with 100% of my time focussed on the mechanics of the market place I was eventually able to tie more functions to the Price Action categories I had
recognized months earlier. Charts turning points
It was a huge Eureka moment. There are market signals which confirm direction and confirm when the market has reached a
signals this as well.
The problem is – none of this can be done in a manual system. The signals are appearing at lightning speed – too fast for a manual trader to identify and apply on a trading platform. So the only solution is one of automation.
Assuming you have a set of rules which are 100% accurate then you have to ask yourself can
it systemized?
There is more in the Price Actions than just Order Filling and Order Gathering
projected high and a projected low. This meant I was able to explain the turning points in the charts.
There are even signals which project the market condition. By this I mean that the market exists in 3 states. There is the Ordinary Market where it will stay within a projected range. Then there is the Adjusting market. The Adjustments are either Ordinary or Extra Ordinary. The Markets
A retail trader may start with one months worth of trades to create the framework for
testing the rules and then they’ll re-work
this framework until it
answers all the questions asked of that one months sample. At this point they are staring at a method which will have a multitude of variances. If this is the case then they’ll find they have retro fitted the method and that this will not stand the test of time. So while maths was not a very useful tool in devising the rules,
could it prove useful testing the rules ? FX TRADER MAGAZINE April - June 2016 77 in be
FX
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95