Automated Trading Championship 2008: Be In-Phase
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On the website of the Automated Trading Championship 2008, an article by Mikhail Korolyuk "Be In-Phase" has been published. Mikhail has been trading on equity market since 1995. He is also the creator of one of the first traders' internet resources, Moysha-online. Mr. Korolyuk is the author of periodic world market analytical reviews on the website of www.premierfunds.ru and in mass media. He develops trading strategies for Russian and western markets. In his article Be In-Phase, Mikhail emphasizes:
The main limitation for automated trading systems is the fact that they are only efficient under certain conditions on the markets. If you trade a trend-following system, it will be helpless on trendless markets; if you are armed with counter-trend systems, you will suffer from very essential losses on the markets characterized by strong trending. Even the most beautiful woman of France cannot give more than she can give. The same is with systems - trading them, you cannot earn more than allowed by the market as of the present time.
This is why one of important elements of system trading is the choice of markets to trade on - their nature must match your trading systems. However, nobody would ever guarantee that the nature of the market traded will not change later. E.g., you are trading trend-following systems, and your market has entered a long-termed sideways trend. If, in these changed market conditions, you will continue following the signals of your trading systems time by time, once having got into a "ripsaw", you will obtain one loss by another. As soon as the market stops matching your trading system, trading under this system will result in your systematic losing your capital.
The article was published on the website of Automated Trading Championship 2008 in the News section.
Sponsors of the Automated Trading Championship 2008 are FXCM (Forex Capital Markets LLC), Interbank FX LLC (IBFX), FXDD and the TRADERS’ magazine. The organizer of the Championship is MetaQuotes Software Corp.