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TRADING SYSTEMS

Building Robust FX Trading Systems

TRADING SYSTEMS Building Robust FX Trading Systems

A Perpetual Quest

There has been a perpetual quest by traders, to identify quantifiable trading patterns, ever since ‘candlestick’ charts were developed, on the world’s first trading floor; the Dojima Rice Exchange, founded in Osaka, Japan, in 1697.

TRADING SYSTEMS Building Robust FX Trading Systems

The advent of computers has made that quest considerably easier, but one factor has remained constant; markets are still traded by people.  As long as that remains the case, they will always be driven by only two factors, namely fear and greed.  There have been many observations made about the predictability of crowd behaviour, but perhaps the most famous and often quoted is that of the famous German poet, and philosopher, Friedrich von Schiller who said,

‘Anyone taken as an individual is tolerably sensible and reasonable - as a member of a crowd, he at once becomes a blockhead.’

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