Real market algo trading

Likhazar

Member
71 3
Rule # 5
Remember about the barbell rule.



Keep an appropriate ratio in the portfolio between high risk and hedging projects.
If you've ever been to the gym, you've probably noticed that the same weight is applied to the barbell on two sides. Thanks to this, lifting the barbell we are sure that it will not overwhelm or crush us.


It's the same in the world of investment. If the funds are invested only in high-risk instruments, there is a high risk of losing all money in spite of potential high profits. On the other hand, if we only save money on deposits or bonds, we make the savings slowly, eaten by inflation and we do not give them the opportunity to multiply.



The golden mean is to choose the security and risk instruments so that our barbell is stable and allows you to beat new records in bench press.
Thanks to this approach, you take care of the security of capital, but on the other hand, you give yourself a chance to earn above average money.



Invest properly!
 

Akinozragore

Member
94 6
As you may know, the Foreign Exchange (Forex, or FX) market is used for trading between currency pairs. But you might not be aware that it’s the most liquid market in the world. I opened a demo account and after a week of ‘trading’, I’d almost doubled my money. Spurred on by my own successful algorithmic trading, I dug deeper and eventually signed up for a number of FX forums. Soon, I was spending hours reading about algorithmic trading systems (rule sets that determine whether you should buy or sell), custom indicators, market moods, and more.
But, there is something missing, the emotions, the gut feeling. Without those 2, it is hard to succeed all the time. For example, news like speeches cannot be detected from any algorithm.
 

Likhazar

Member
71 3
But, there is something missing, the emotions, the gut feeling. Without those 2, it is hard to succeed all the time. For example, news like speeches cannot be detected from any algorithm.
You have to answer yourself if you want to be emotionally involved in trading. Always the weakest point of trading strategy is trader and his emotions.

There is no chance to be succeed all the time. You are writing about news, sure news cannot be detected, but you know when news are published and you can decide to trade it or not, you can put a rule in algorithm to skip news announcements or simply switch it off manually.

Basing on algorithms you are relying on statistics.
Using gut feeling and emotions is not trading, it is "wishing" or what is more dangerous "hazard".

Even when you decide to trade manually your trading system should be binary (0-1), with no place to discretion.
 

Likhazar

Member
71 3
Looks like your system is losing ??
Not really ;) . July is still positive, maybe not as good as April or May but still positive. By the way, every system has losses and everything is ok if losses are within statistics of the system.
 

Likhazar

Member
71 3
Last week:
Jly last week.gif


And a whole month ;) :
July all.gif
 

Likhazar

Member
71 3
06 I understand that the stock market is associated with the possibility of losing money.

Such a simple, yet significant part of investors or traders do not understand this until they lose their funds.
The stock market is a great place that gives you amazing opportunities to get rich. But there is nothing for free. The more we want to earn, the more risk we have to take.
There are no shortcuts.
One could write a book on the approach to losses, but a man learns from his own mistakes.
First, the hopes for quick and high earnings without risk will fall in you, and then you will understand that loss and profit are closely related.
Remember that capital on the stock market is necessary to earn money. Therefore, if you risk a lot and lose a lot, in the end you will not have anything to trade.

Finally, we will remind you of two famous rules of Warren Buffett:

Rule No. 1
Never waste your money
Rule No. 2
Never forget about rule # 1
 

Likhazar

Member
71 3
#6 Invest in accordance with your character



Some prefer peace and security, others risk. Do not invest in what is popular, but in what is consistent with your approach and character. The funds are meant to work for you for years, which is why you need to feel the psychological comfort. In the end, it's only you who are responsible for your money, so you have to answer the question if the project meets your expectations.
 

Likhazar

Member
71 3
7 Do not invest with emotions.

We hear all around that everyone is investing in a given project and making money. What are we doing? We enter the project as soon as possible without questions. Because we will pass a great opportunity to earn money!

And then it turns out that, in total, we really have no idea what we put the money into. That the results are not what colleagues said, etc.
Trading on the stock exchange under the influence of emotions is the worst harm you can do to your money. Is Warren Buffett buying company shares because they are popular now? No, before he makes a decision, he will get to know the company, learn its pros and cons, opportunities and threats. First of all, he will understand the business model.

What is fashionable is not always profitable. Therefore, before the next investment decision, put your emotions aside, take a step back. Look carefully and then take the appropriate action.
 

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