Stock Market for Dummies
As the success of the overall trading courses depends on the performance of the rules, system traders try optimization in order to manage risk, increase gains, and ensure long-term stability. This is done by the modification of different parameters within each rule. Optimization, however, can improve results only marginally. The combination of parameters used is the key to the success of a system.
In an effective system, the head rules over the heart. It throws all emotion out of trading. Investors, who fail to cope with losses, often second-guess their decisions and end up losers. If a pre-developed trading courses are followed, system traders need not make any decision as the system is not empirical but automated. Reducing such human inefficiencies yield more profits.
Trading systems are, however, complex. They require a good understanding of technical analysis, the ability to make empirical decisions, and a solid knowledge of how parameters work.