How to pick the best algorithm for trading?

A trader’s path from a novice to a professional is not easy and is rather thorny. Several unsuccessful trade operations make the majority to stop their fix api trading development at the very beginning of the path. However, those who have been engaged in professional trading for more than 10 years, remember the moment when you stand at the very beginning of the journey with a smile. Your income is much less than your profit.

A fix api trader works with money. So there’s more psychological pressure here. And you need to be able to deal with the psychological factors in trading, because in my subjective opinion 50 percent of success depends on it.

Unfortunately I will not be able to solve everyone’s psychological problems. But I can help you decide with the trade algorithm, to save you time looking for a best strategy for you. And that’s what we’re going to do today.

A trade strategy shows a trader’s actions in the marketplace, and therefore must be individual. You’ve probably noticed that one trade strategy can work perfectly in one trader and not work in the second. It depends on the trader’s approach and the preliminary expectations.

On this basis, there are several key elements in the choice of trade strategy:

  • Start simple. You shouldn’t immediately search for complex and cumbersome algorithms. You will start by simply crossing lines or trading from levels. Some traders only use these parameters and make good profit on the market of fix apiforex. Examine the basics, and then improve the algorithm.
  • At the same time with the first action create capital management parameters. If psychology is 50% of success, the next 50% is risk management and money management. If you have a decent algorithm, then applying these two components will already make you money.
  • Scale the trade strategy (as required). When a simple strategy makes money, it makes sense that new methods can worsen the result. However, if you have an option to improve the results by applying a new filter, why not use it in trade? I mean scaling the current strategy, not moving onto a new algorithm.
  • Automate the process. When you have a ready-made strategy that has a number of trading terms and includes parameters of risk and money management: http://www.investopedia.com/terms/r/riskmanagement.asp, it’s time to think about a trading robot. This would allow the psychological factor to be eliminated immediately. In addition, if the robot is going to have risk parameters, this important process of success will be fulfilled.
  • This option is better not for continuing the algorithm selection, but for “fast finish”. If you are unable to sell profitably or simply have no time, but you want to, then buy a ready trading robot and be a passive investor. There is a lot of ready software that can work with minimal fix api trader participation. For example, http://forexzzz.com/product/forex-zzz-lock-arbitrage/will allow you to set up a merchant robot and trade with a return of 30-40% per month with zero risk.

Determine what stage you are on and act. Using these principles will allow you to select and form a profitable algorithm for trading in the financial market. Whether it is a trade robot or manual trading, it is essential to determine the necessary conditions to choose the trade strategy for. This approach will allow you to select an algorithm for a specific manager and his trade preferences.

One Reply to “How to pick the best algorithm for trading?”

  1. Hi,

    Thank you for sharing! I am a believer that in overcoming the psychological pressure from trading with money is to use an arbitrage forex trading software. This was the cure for my anxiety and helps me make profits consistently for the past years.
    Thank you once again for sharing this, and it just reminded me why I should focus on the basics of when developing a trading strategy.

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