Скачать или смотреть Nine Mistakes To Avoid When Using Systematic Trading Systems

Humans are terrible at trading. Evolutionary instincts, hard wired into our brains,
make us rush into making bad decisions. Our grey matter is loaded with emotional
baggage which leaves us predisposed to repeatedly making the same mistakes.
Nobel prize winner Daniel Kahneman and his colleague Amon Tversky call these
items of baggage cognitive biases.
They made sense when we were hunting woolly mammoths; but are positively
unhelpful when we hunt for elusive profits in today's complex financial markets.
These biases form the basis of the theory of behavioural finance. This theory
explains why investors and traders often behave in ways which classical financial
theories (that assume perfectly rational behaviour) cannot predict.
We believe the best solution is to hand over your portfolio to a system which
decides what, and when, to buy or sell.
But the process of creating and using trading systems is fraught with dangers. The
same biases that affect us when we trade can also result in serious mistakes being
made when designing trading systems. The result is a strategy which is heavily
exposed to large losses.
Here are nine mistakes you should try and avoid when building your trading
system.