Daniel Fernandez at mechanicalforex.com has put up a good analysis of the qualities that profitable systems have in common when thinking about automated trading system development In this specific context, he explores what makes it more likely to have a system that performs well with a set of historical data (“in sample”) with subsequent data (either historical data that’s beyond the in sample data set, or using actual data going forward, aka “out of sample”). He finds that a sufficient number of trades, high linear regression coefficients, and high system quality numbers (see here and here for some discussion about SQN) all contribute to success when using one’s automated trading system in the market going forward. However, those characteristics are just a starting point, and he closes with this caveat:
News site Forex Magnates brings to light another entrant in the social trading arena called ForexGlobes. I signed up to see if this site has anything new to offer in the increasingly-competitive social trading world. Unfortunately, it’s still in beta, so some critical components appeared to be missing (or at least, I could not find them): it doesn’t appear that signal providers will be compensated for their signals, so sharing trades is purely for bragging rights at this stage. In addition, while ForexGlobes claims to be partnered with several forex brokers, I could not for the life of me figure out how to link my live account. In addition, it has a strong resemblance to Tradeo in look and feel, so the jury is still out as to how ForexGlobes intends to differentiate itself. In any case, here’s the bottom line from Forex Magnates:
MIT will run an experiment to see if social media investing improves performance. It’s doing so by giving $100 each to 10,000 Asians to trade forex on eToro by following high-performing traders and copying their trades.
Welcome to INTJ Capital. This site is dedicated to providing financial education and information on automatically trading sophisticated strategies in your own brokerage account. Updates are forthcoming.
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