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Mechanical trading system fatal flaws


to overcome human weaknesses, elim rebateforexindonesiaate the negative role of emotions in the actual transaction, there are a considerable number of traders to develop a variety of cashback forex Forex rebate for you getforexrebate, looking forward to machine trading to achieve the goal of determin Forexrebateforyoutic profitability I personally developed highestrebateforex practical operation of such trading systems, found that such trading systems have fatal flaws, these fatal flaws lead to the mechanical trading system is not possible A mechanical trading system in theoretical establishment of the so-called systematic trading refers to a certain investment philosophy under the guidance of risk control technology and trading technology organic combination of interrelated trading rules system trading system is an organic combination of money management, risk control, psychological control and statistical analysis of the market using a systematic trading method, so that trading decision-making activities with The theoretical basis of systematic trading: 1, price fluctuations are not completely random, its non-random part (trend) exists and can be tracked and identified 2, in the established level of risk to achieve positive expectations of the trading system exists 3, systematic trading can overcome human weaknesses, to achieve the established level of risk / return of sustainable The characteristics of stable and profitable systematic trading: 1, risk / return can be expected: trading system after more than ten years of trading data testing, various risk control indicators and parameters have been tested, such as expected profitability, the maximum possible loss suffered, the maximum number of consecutive losses, risk / return ratio can be predicted in advance, so that the risk can be controlled, the return can be expected 2, homeopathic trading: the system uses trend tracking 3. objectivity: all rules and parameters of the trading system are completely mechanized, and the trading signals are issued automatically by the system, which completely excludes the subjective judgment of traders, thus effectively solving the negative impact of traders emotions on trading. The problem is that there is no mechanical trading system that can turn theory into practice 100% of the time II. Of the above three links, there are two links with fatal flaws, resulting in uncertainty of investment results, namely: 1, mechanical trading system does not have certainty of investment philosophy mechanical trading system of buying and selling signals based on the signals indicated by the combination of some trading indicators, through the continuous trial and error approach to try to find the trend in the market, there is no investment philosophy, this search is a huge cost, which itself This search has a huge cost, and its own huge uncertainty, there want to be a lot of trading systems in the profit before the death of the road to find the truth 2, mechanical trading system in the theoretical level with certainty in the trading rules, but the application of trading systems for real combat often encountered this phenomenon: in the simulation phase of various parameters, indicators are very satisfactory, but as soon as the actual battle began to lose money, the problem lies in the theoretical reality difference ( The problem lies in the theoretical reality difference (Slippage) above based on any indicator or combination of indicators to issue a buy and sell signal there is a time delay, that is, the requirement to evaluate the signal at the end of a specific period of time, and then based on the signal to issue trading orders in the transaction price and the moment the signal market price there is an inevitable error, this error is the theoretical reality difference (Slippage), it leads to the design of statistical data based on decades This error is the theoretical reality difference (Slippage), which leads to the design of the trading system based on decades of statistical data has no practical value lost by a hairs breadth, a thousand miles, it is due to the existence of errors, making the mechanical trading system this complex machine has fatal flaws, at any time may bring investors huge losses

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