Investing Market Software Stock TradingThis is because many of the software sold do not contain any type of theory behind it. Instead, these systems are sold as black box systems (meaning you won't know how the system recommends stocks), and the system is based on curve fitting optimization, meaning a simple software algo has made the rules so that the past profitability is maximized without any consideration to the underlying theory. Therefore, personally, I prefer to know all the rules of the underlying stock trading system before trying it out on practice accounts. Always test any system extensively before putting it out to work with real money. Also, a lot of the systems do not have consideration about money management. All the systems have drawbacks, which means periods of losses. A good trading system will take into account that these periodical losses occur, and will ensure that you have capital conserved for the period when the losses turn again to profits. Some of the curve-fitted systems that do not have this side can lead to quick ruin when the eventual downturn occurs. Lists of trading system software float around different discussion forums, such as the one from Chuck Le Beau at Traderclub dot com. Follow these discussions to get a feel about what the software does and how it handles your preferences for trading (such as the investment horizon: day trading, trend trading, etc.). |