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’.
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...
Topics: Forex Trading Strategies
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?
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.