DislikedSo you are telling me that a 13 year old, with reasonable intelligence, can trade FX using a backtested system and can outtrade FX traders who have been at this for decades ? WHAT???????? ARE YOU SERIOUS????????Ignored
Let's say you are using a simple moving average cross-over system like the one I described yesterday. Your system gives you a buy signal and you buy. 10 days later you are sitting on a 800 pip profit and your system tells you to close the position. Who did outsmart them?
Well you outsmarted (and took a lot of money from these) three groups of people:
1: All the amateurs who think that the market is "overvalued" and is about to reverse. These rookies are constantly fishing for tops and bottoms.
2: All the idiots who saw the break-up but are still stubbornly holding a short position. They will hold still until their initial 50 pip stop becomes a 500 pip loss.
3: All the imbeciles who are averaging down and shorting more and more lots as the market moves against them. These morons always think they can teach the market a lesson.
And that's the job of a profitable backtested system, to take the money from the weak and give it to the strong.