Traders are using different methods for their decisions, how they should invest their money. I have tried many ways to be successful in the markets. It is a fact that 90 % of traders are losing money.
There are many reasons for that. The most common is that many traders don’t have a strict risk management or they have it, but the discipline is missing to fulfill it. For that reason, I have started to use trading robots for many years.
They are following strict mathematical rules, and of course they have more discipline then the most traders. As the technical analysis is a religion for a lot of traders, I have tried to programme robots for many technical indicators, even combining several of them.
But it is not possible to describe the behavior of the financial markets with some mathematical rules. Whatever you define, there are always some market situations which running against your rules, and you will lose money. Some month ago I had a new idea.
If the markets are so unpredictable, what’s about random trading? Can this be the right way? To handle an unpredictable market with unpredictable rules? I designed a trading robot which has the rule that he has no rule. It decides with a random generator at which time an order will be opened. The result was a big surprise. Looking over a long period It seems to work really better.
The reason can be, that in the universe exists no random, everything was predefined in the moment of the big bang. Very theoretically – isn’t it? Another way to explain that behavior is, that even the random is mathematically predictable to a considerable extent.
The German mathematician Friedrich Gauss described that some chapters of the probability calculation. For that reason, I called my robot (expert advisor) “GaussAlgo”. It’s programmed in the most common program language for expert advisors and indicators, called MQL (meta quote language).
On www.mql5.com you can find every information and support for automated trading. The trading terminal can be downloaded for free, and of course, “GaussAlgo” is also ready to download on that platform. Automated trading is nothing new, it’s growing and growing for many years, and actually the most transactions on the markets are triggered automatically by trading robots.
Trading on the financial markets is exciting not because of the movement of the market prices; it is an experiment and a challenge for every trader to find his way of success. To be successful depends on the right decision for your trading method and finally of course of luckiness.
Written by Stefan Winter