Trading Systems 101

Traders buy and sell for a variety of reasons. Some traders will make decisions based upon news headlines or gut feelings. One may read that gasoline prices are at record levels and decide they have to go down, while with equal certainty another trader decides the news justifies even higher prices. These strategies rely on luck, rather than mathematical probabilities, to succeed.

Turtle Traders

Famous commodities trader Richard Dennis was having an ongoing debate with his friend and business partner Bill Eckhardt about whether great traders are born or made – whether it is possible to teach the ability to trade successfully. While Dennis firmly believed that trading abilities could be broken down into a quantifiable system of rules … Read more

Back Testing

A method commonly used in developing a trading system. A trading strategy is tested and optimized based on historical data. It is then applied to current data to determine predictive value. Back Testing is thus based on the notion that a strategy that worked in the past will continue to work in the future.

Artificial Intelligence

The creation of programs to perform tasks which humans perform using their intelligence, thus mimicing our thought processes. See also: Neural Networks

MetaTrader Introduction

The MetaTrader Trading Platform was built by a company called MetaQuotes. The MetaTrader platform has a built in programming language called MQL4 (MetaQuotes Language 4) that allows the user to create trading strategies. Progams written in MQL4 several different purposes including Expert Advisors, Custom Indicators, Scripts and Libraries. Expert Advisor is a program that can … Read more