Study Guide for Come Into My Trading Room - Forex Factory

TRADING
Answer 40
F I V E
D. 1, 2, 3, and 4. Give yourself four points for choosing the correct
answer (two points if you answered C or E, partly correct).
A good trading system pulls out a few key factors from the huge mass
of market information. Market-driving factors keep slowly changing,
which is why system parameters must be tweaked with the passage of
time. Discretionary traders with a good feel for the markets focus their
attention on different factors at different times. All beginners are preoccupied
with entries, but you get paid for exiting trades. An automatic
system, especially if purchased from a vendor, is a gambler’s dream, but
trading requires persistent work.
Answer 41
C. 1, 2, and 3. Give yourself four points for choosing the correct
answer.
To be worth trading, a system must provide a positive mathematical
expectation of generating more money than it loses over a period of time.
The only way to find out is to test the system yourself. Computerized testing
may be more objective, but manual testing more closely replicates the
experience of trading the markets, with all its psychological stresses. You
have to manually test your system to find whether it fits your temperament
as well as your wallet. Most parameters of a trading system can be
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