With an algorithmic trading system, trading works differently. There are no optical signals that need to be processed, but concrete numbers.
Life should be easy, but often it is not. For example, when you have no time to do what you want. We do back tests again and again and again. With an automated system, it is almost effortless to do a few hundred or even thousand trades within a few minutes. The only things that you can change is when you trade, how much you trade and when you close your positions. With automated trading, you can get real insights within a few minutes.
A pilot needs to increase the speed on the runway before the takeoff. But the runway is short. If the speed is too high or if the pilot misses the right moment to get off the ground, the plane might crash into the fence. In my opinion, good automated trading is very boring.
We have seen the Euro go down for several years. That might maybe be a problem for several currency pairs because it looks like a lot of countries are affected.
Whenever the computer notices an entry signal, it can open a position in that direction. In our case, this will only happen if the number of open positions is below the number of allowed positions.
The stop out level for your account type might be the one setting that makes the difference for your own account. Do you know your account details?
How do you know if one version is better than the other one?
If you want to improve your system, then you need to do things in a particular order. Probably it is a better idea to invest the time, money and effort it takes to find out what works and what doesn’t work.
Good trading is based on probabilities, based on two fundamental laws. You can find them on our website just in case you are interested.
I once wanted something that was able to trade 24/7 while I was away. I wanted something that would never get tired or bored and that could do it without breaking the trading rules.
To make an educated decision, you need to know something. You need to know the probability.
Even if the account growth is smaller, a smaller drawdown is often worth it.