All Algorithms Fail over the longer term……..or do they????
There are so many wise sages in the trading world who make bold declarations…..and for the untrained novice looking to find a sustainable way towards trading for wealth generation, the reliance on such easily and hastily uttered advice without questioning the voracity of these statements can mean years of lost opportunities.
We cannot stress enough the importance of testing all assumptions made about trading your system rules. Never rely on hearsay, no matter from what source it is uttered. Always test every assumption in your model. You may be very surprised with the result.
For those that in a quick tweet declare that trend following is dead, or that every algorithm has a very short shelf life….. or that trend following opportunities in Forex are limited……. we have prepared a walk-through demonstration to test some of the assumptions you may hear from those that like to shoot from the hip.
We evaluate the validity of these statements using a well worn breakout strategy applied to a number of popular Forex markets and CFD instruments. The results clearly demonstrate that simple but diversified systematic trend following rules do indeed have enduring long term application for a large range of liquid markets without the need to continuously revise or adapt those rules.
The first podcast provides the visual walk-throughs and the second podcast puts some meat on the bones and explains the processes used to construct these algorithms.
Trade well and prosper
The ATS mob