Does Algorithmic trading take historical moves to predict what will happen in the future.

Does Algorithmic trading take historical moves to predict what will happen in the future? Trading Algorithm actions, positions, design, articles and further analysis.

Algorithmic Trading can base the decision whether to open or close a trade on a variety of different assumptions. Performance can be particularly bad for algorithmic models that base their strategies on one or just a few assumptions.

Designing the algorithm to react as if everything is in a state of Chaos is the better way around. Performance can be particularly bad for a portfolio that employes a simple algorithmic models. Expecting a sharp uptrend after a decline makes sense. However, predicting the right moment can be difficult and might result in investing more and more in a declining market, resulting in selling in loss in order to save what is left from the account.

A trading Algorithm, as well as a Human Trader, will encounter from time to time a bad investment. The interesting question is: how will they react to the situation?
A human Trader will think, feel, anticipate, hope... while the Trading Algorithm will just act, in the most logical way that it was designed to follow.

11-Apr-2013

Further reading

Algorithmic currency trading. Based on an original Trading Algorithm. Implements many trading aspects, as well as portfolio management, investment strategies and tactics. Manage a trading account with the software is available for new investors. For further details please continue to Automatic account management services .
Please notice: Trading foreign exchange should be carefully planed. Any trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Please be aware that a possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should never invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Useful links:
ALGORITHMIC CURRENCY TRADING   Automatic account management services for currency trade   Silver Lines trading algorithm hosting services

Video examples

Watch video examples of short term trading. All recorded at real time for your convenience.

Charts list

A list of charts that demonstrates the Trading Algorithm buying and selling points. Please select your choice of currency pairs:

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