Foreign exchange mechanical trading system fatal flaws

a lot of foreign exchange forexbrokerrebateprogramvestors in order to overcome human weaknesses, eliminate the negative effects of emotional volatility in the actual foreign exchange forex broker rebate program, there are a considerable number of foreign exchange traders to develop a variety of foreign exchange cashback forex trading forexrebatebest, looking forward to mechanized trading to achieve stable profits I personally developed autorebateforex practical operation of such trading systems, found that such trading systems there are some Fatal flaws, these fatal flaws lead to mechanical trading system can not achieve the goal of sustained and stable profitability in foreign exchange trading a, foreign exchange mechanical trading system in theoretical establishment of the so-called systematic trading refers to a certain investment concept under the guidance of risk control technology and trading technology organic combination and the formation of interrelated trading rules system trading system is money management, risk control, psychological control and market Systematic trading method is used to make trading decisions systematic and consistent, which is of fundamental importance for achieving sustained and stable profits. Systematic trading can overcome human weaknesses and achieve sustained and stable profits at the established risk/return level. The system uses trend-tracking technology to dynamically track market trends and constantly adjust the direction of positions so that they are consistent with the current market direction.3. Objectivity: All rules and parameters of the trading system are completely mechanized, and trading signals are issued automatically by the system, which completely excludes traders subjective judgments, thus effectively solving the problem of traders emotions on trading. The negative impact of this can be seen, mechanical trading system in theory can be said to be flawless, if the theory can be put into practice 100%, no doubt can achieve certainty profitability goal, the problem is that no mechanical trading system can be 100% of the theory into practice Second, the fatal flaw of the foreign exchange mechanical trading system I believe that in order to achieve certainty of investment results, must achieve investment The certainty of the concept, the certainty of the trading rules and the certainty of risk management, namely: and for the mechanical trading system, in the above three links, there are two links with fatal flaws, resulting in uncertainty of investment results, namely: 1, mechanical trading system without certainty of the investment concept mechanical trading system of buying and selling signals based on the signals indicated by a combination of some trading indicators, through the continuous trial and error approach to try to find the trend in the market, there is no investment concept, this search is a huge cost, which itself has a huge uncertainty, there want to be a lot of trading systems in the profit before the death of the road to find the truth 2, mechanical trading system in the theoretical level with certainty of trading rules, but the actual battle can not be achieved in the application of trading systems for real combat often encounter this phenomenon: in the Simulation stage of various parameters, indicators are very satisfactory, but once the actual battle began to lose money, the problem lies in the theoretical reality difference (Slippage) above based on any indicator or indicator combination of buying and selling signals there is a time delay, that is, the requirement to assess the signal at the end of a specific time, and then based on the signal to issue trading orders between the transaction price and the moment the signal market price there is an inevitable The error is the theoretical realistic difference (Slippage), which leads to the design of the trading system based on decades of statistical data is not practical value lost by a hair, but a thousand miles, it is due to the existence of errors, making the mechanical trading system this complex machine has a fatal flaw, at any time may bring investors huge losses