Cheers Rich. I have no time for Foucault and his BS. I create trading systems for markets like Forex, CFDs, Futures etc so backtesting and optimization is extremely important. What you are effectively doing is creating a "swarm" of variables and using a form of evolutionary biology (genetic algorithms) to compute the best variables you are selecting for. It sounds complicated but it's actually very easy to understand and do.
I don't really care about any of that stuff because what all my systems are doing is looking for patterns that repeat every day on very short time frames and using chart types that most people have never heard of (i.e. not time-based charts).
Algorithms are obviously a very big part of the markets now, which is why I would never trade during times of low liquidity (that includes overnight). You see these "flash crashes" more and more frequently because the algos get triggered during times of low liquidity and pile on to create the "waterfall effect".
If you are trading when there is plenty of liquidity you don't have these problems.
If you have a manual trading system that isn't discretionary and is/almost is 100% mechanical (fuzzy logic is good in most cases), then there is no reason to sit trading every day. It's boring.
Cheers Rich. I have no time for Foucault and his BS. I create trading systems for markets like Forex, CFDs, Futures etc so backtesting and optimization is extremely important. What you are effectively doing is creating a "swarm" of variables and using a form of evolutionary biology (genetic algorithms) to compute the best variables you are selecting for. It sounds complicated but it's actually very easy to understand and do.
I don't really care about any of that stuff because what all my systems are doing is looking for patterns that repeat every day on very short time frames and using chart types that most people have never heard of (i.e. not time-based charts).
Algorithms are obviously a very big part of the markets now, which is why I would never trade during times of low liquidity (that includes overnight). You see these "flash crashes" more and more frequently because the algos get triggered during times of low liquidity and pile on to create the "waterfall effect".
If you are trading when there is plenty of liquidity you don't have these problems.
If you have a manual trading system that isn't discretionary and is/almost is 100% mechanical (fuzzy logic is good in most cases), then there is no reason to sit trading every day. It's boring.