Tradeworks Blog

Why Your Instincts are most likely Wrong: Trade Like This Instead...

Posted by Tradeworks on 20-Jul-2016 15:47:37

In the world of sports, it’s all about making that final killer shot, that last mad dash which consumes every last bit of energy in order to get that winning result that the player so desperately wants. The player’s ability, and incentive, to do something extraordinary to change the game around is what makes sport so exciting to watch. When Ronaldo put in that unbelievable header against Wales in the recent European Championships in France, he instinctively knew where the ball was going and his many years of practice allowed him to pull off that monster leap above all other players to put the ball in the net.  

We all love comparing what happens in sport with what goes on in the real world. Some traders might even consider themselves as an elitist kind of sportsman, able to navigate through difficult situations just by trusting his instincts and working off his experience. For most traders, sadly, this rarely works well and being brave or ‘following your instincts’ will more than likely result in nasty losses rather than the proverbial ‘homerun’.

Mr. Market likes to make traders suffer by throwing them curveballs when they expect a straight shot and generally behaving unpredictably which means the famous ‘gut feeling’ really won’t get a trader very far. This is precisely why it is so important to have trading rules. Rules help traders from walking down the wrong path, acting on ‘instinct’ or emotion or doubling up when wrong and making other random decisions. The upside is, of course, that rules, when applied correctly, help traders make consistent profits.

Tradeworks is all about automated rule-based trading and in this blog we have dug out 10 tried and tested rules as advocated by one of the greatest market analysts of all time, Bob Farrell. As head of the Merrill Lynch research department for decades, Bob’s insights have been condensed to "10 Market Rules to Remember" and subsequently redistributed in countless articles since then. Never the less, these rules are still very much valid and, in our view, pure gold to the avid trader.

Let's take a look at these timeless rules and how they can help you achieve better returns.


1. Markets tend to return to the mean over time.
The 1998-2000 Nasdaq bubble is a great example.


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Topics: Rule-based trading, automated trading, 10 Market rules to remember

How to make a losing strategy profitable with Tradeworks

Posted by Tradeworks on 15-Jun-2015 08:55:00

Many of our subscribers have asked us how good the pre-set template trading strategies are. The template strategies are, of course, real strategies which our team has built to showcase the Tradeworks automation platform. Well, the short answer to the question is that some of them are actually pretty good. But more importantly, it is very easy to turn a poor strategy into a great one! Let us explain...

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Topics: Forex Trading Strategies

Benefits of Automated vs Human Forex Trading

Posted by Tradeworks on 29-Apr-2015 14:02:00

The Benefits of Automated vs Human Forex Trading

Why is it that more than 70% of the institutional trading volume in forex is automated, whereas only a small fraction of the retail volume comes from automated trading systems? Is it due to the software being too expensive or difficult to operate? Or is it because private traders lack trust in automation systems and would rather stay in control through traditional point-and-click trading?

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Topics: Trade Automation, Forex Trading, Forex Trading Strategies

A short guide to Backtesting forex trading strategies

Posted by Tradeworks on 19-Apr-2015 06:57:00

Backtesting is basically the application of a set of technical rules (i.e. a trading strategy) to a set of historical price data and the subsequent analysis of the resulting returns that the strategy would have generated over a specified time period. Traders can thereby determine how a given strategy or signal would likely have performed during a specified period.

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Topics: Forex Trading Strategies, Performance Analytics, Backtesting, Data quality

Top 5 tips for improving your automated FX trading

Posted by Thomas Nyegaard on 10-Dec-2014 04:42:00

Top 5 tips for improving your automated FX trading

Here at Tradeworks, we love automated trading. As we
discuss below, it offers a whole range of benefits
that can help traders profit from the markets. But
automating your strategy doesn’t guarantee results. 
Just like any other form of trading, you need to
dedicate time and effort to get it right. So we’ve 
come up with a few tips that we believe will help
increase your chances of success. 

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Topics: Trade Automation, Forex Trading, Forex Trading Strategies

A list of trade automation options available to retail forex traders

Posted by Thomas Nyegaard on 23-Sep-2014 17:05:00

If you’re an independent Forex trader looking for ways to optimize your trade execution and avoid missing great trading opportunities, then you could consider automating your trading strategy.

There are a variety of options available for automating trading strategies. This post seeks to evaluate each of them in terms of affordability, flexibility and time commitment.

  

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Topics: Trade Automation, Forex Trading Strategies

Why automate your strategy with Tradeworks?

Tradeworks is a broker-neutral developer of trade automation software working solely for individual traders. Try our product for free and discover advantages of automating your trading strategy including:  

  1. Save time and let our cloud-based technology monitor the markets for you 24/7
  2. Elevate your trade performance through unemotional and exact trade execution
  3. Manage your risk better with our innovative risk management tools 
  4. Intuitive and simple-to-use interface
  5. No programming skills required

 

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