Does science of mind Play a Role in automated Forex Trading?

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Automated Forex trading has already been proven profitable numerous times, however, there is still a vast majority of habitancy who - although they do their best and use proven products - still can't seem to be able to make consistent profits out of them.

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Now to some people, this might seem admittedly weird - shouldn't an self-operating Forex law furnish the same results for everyone? Actually, a good law is just one of many pieces of the puzzle - there are many other factors that determine whether and how much you will behalf from the goods you purchase.

If you did exactly the same thing as other person, then yes, the law would furnish same results. Those things consist of the Vps you choose, which influences the latency to your broker's server, the broker you choose, which influences the prices and slippage you get and also - any way absurd it may seem at the first sight - how you can cope your emotions.

"But aren't self-operating trading systems supposed to eliminate the human's weakest point - emotions?", you may ask. Well, they would, but only in case you set the trading law up, totally forget it and don't come back sooner than after a year of trading. However, that's not what most habitancy do, that's why psychology influences your success more than whatever else does, even when you use an self-operating trading system.

If you don't believe so, just look around some forums where habitancy discuss single trading systems - way too many habitancy get excited after their new Ea takes first few trades, which end up in behalf and get sed if their new Ea takes those and end up in loss, although the effect of the first few trades can have nothing to do with the long-term performance.

So what is the best way to find out whether or not an Ea is worth adding to your portfolio? What I personally use is the following procedure:

First off, I accomplish a backtest to see whether a law was consistent in the past. If the backtest shows too much inconsistency, I wouldn't trade it even if the transmit test was Ok, because it is a sign that it will break sooner or later.

Now we all know that backtesting is not reliable enough, so now we need to let it run for 4 - 6 weeks on transmit test and then assess the results to the backtest. Now it doesn't matter whether the 4-6 weeks were winning or losing - what matters is how well it matches the backtest for the corresponding period. If the backtest shows winning results, but the transmit test was losing, it is clear that something is wrong. On the other hand, if the backtest is losing and so is the transmit test and the rest of the backtest looks fine, there's still a opening that the Ea will accomplish good in the future.

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