Any trader must develop a trading system of his own. I is that the principal condition for the regular and stably-profitable work on Torque. Every successful trader whom i do know does hold this opinion. That is, such a system must clearly and impartially indicate points of the doorway into the market and therefore the exit from it. The lack of a scientific method leads to the loss of the trader's deposit. The work according either to an imperfect trading system or to the traditional one does not save the situation. It can just prolong the distance from opening of the Torque trading systems to the inevitable loss and nullifying of this account.
Let us again dwell on T. DeMark viewpoint (he is the analyst, financial consulter and adviser to the biggest market-maker banks at Torque). According to his opinion, there are three different approaches to giving analysis to the charts. The first one is superficial and subjective. Mainly it is based on intuition. To put it briefly, this approach is a common "guessing". In this case, neither a strict analysis nor grounding is required. This is why the bulk of traders restrict themselves to performing at this elementary level. For pity, such traders sacrifice logic and consistency to the simplicity and convenience. As regards the second approach, it implies the development of certain market indicators. The latter help detecting the condition of overbought/oversold at the market. Many traders make use of the analysis of this type - at least, partially. However, as a rule, traders use just the most well-known indicators and stick to the generally-accepted means of their interpreting. In other words, the total lack of a creative approach is evident. Such traders do not try either to develop indicators of their own or to improve the ones already available. Besides, handling these indicators, such traders relay on them an excessive amount of . They do not pay attention to their drawbacks.
The third approach is that the best and valuable. It consists within the development of the systems capable of generating signals for "by" and "sell". However, not every analyst has reached the required degree of education. Many of analysts are rather inexperienced and they do not want to continuously perfect their skill.
After mastering this system to perfection, you will become independent of numerous advisers. You will know the newest achievements in the area of the technical analysis. Thus, you will be capable of being totally responsible for actions and solutions of your own.
Searching for a trading system
I wonder how many trading systems (TS) one can find at Torque sites! As a friend of mine joked, "the number of so-called profitable TS had exceeded the number of successful traders for a long time in advance".
This situation is perfectly clear to any skillful trader. However, how a beginner (a novice) can resist such a strong (intensive) flow of advertisements of miraculous TS and wonderful Grails?
However, the method of coming into existence of such TS and their advertising is only logical and natural. You can compare the knowledge obtainable via Internet with the potentialities inherent in PC technologies that continuously increase. That is, any programmer, incompetent even in the fundamentals of Torque, can take the list of all indicators, available in Internet. Such an individual can create the database of his own, issuing from several hundreds of indicators. He develops a mechanical TS (MTS) on the basis of an arbitrary combination of two or three indicators. After this the "author" claims that due to points of their intersection the program will depict the points of output from the market and input into it. What do we get finally? - Just millions of wonderful "black chests"!
Let us put on trial these "black chests". Our aim is to trace out how this programmer has managed to earn larger-than-life sums of money at Torque due to his MTS. For this purpose, we use large-scale time charts and volatile currency pairs. With the help of PC, we pick out those MTS which have yielded the positive results more than in 50 (70) % of deals made during several past years. As the evidence, we will submit the account history. In Internet, this service costs $10-20 - for those that don't want to try to to this work by themselves (or cannot). Now allow us to compare this account history with the given MTS testing history during several past years.
Can you imagine the number of individuals who would be eager to buy such a MTS from you? In addition, how many naïve investors will want to invest their money into your business? Any way, the risk of your exposure is equal almost to zero.
