Mechanical Trading

From The Free Forex Encyclopedia

Jump to: navigation, search

A mechanical trading system is often touted as the end-all to Forex trading. Traders choose a system to follow and enter it into a program that will then pick starting and stopping points for trades as well as maintain a position, without requiring a trader be present to control those actions.

Implementing a mechanical trading system can be the best decision a Forex trader can make. However, it can also be hard for those traders who work off of emotion. The idea of putting future profits into the hands of a computer program can be a scary situation, however, with free platforms available now, it is a limited-loss system: a computer program won't ride a trend just to see it plummet in the end, and a program can't get cold feet and sell too early.

As an automated system, a mechanical trading system is a good all-around program to keep in the background. Whether a trader wants to implement a break-out system, reversal, indicator or trend-following system, there are plenty of options available.

Related Articles:

Featured Mechanical Traders: October's Picks! (forum post)

What is Mechanical Trading? (forum post)

Mechanical Trading: Don't Knock It Until You Try It

"Believe it can be done. When you believe something can be done, really believe, your mind will find the ways to do it."
David Schwartz
Clicky Web Analytics