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    There isn't a Holy Grail to be found!

    Abstract:Ask any Wall Street quant (the highly nerdy math and physics PhDs who build complicated algorithmic trading techniques) why there isn't a "holy grail" indicator, approach, or system that generates revenues on a regular basis.

      Ask any Wall Street quant (the highly nerdy math and physics PhDs who build complicated algorithmic trading techniques) why there isn't a “holy grail” indicator, approach, or system that generates revenues on a regular basis.

    WikiFX,

      There will probably be two reasons presented to you:

      1. It is impossible to predict the future.

      Is it possible to predict what a central bank chief will say during a speech?

      Or what a well-known investor or hedge fund manager says in an off-the-cuff TV interview?

      Do you know when the next terrorist incident will occur, causing fear of the unknown?

      What about a natural disaster for example tsunami or earthquake?

      The number of unanticipated market-moving triggers is endless, and when they occur, the markets and your forex trading system might be thrown into disarray.

      Realize that this is an inevitable part of trading, and the best you can do is be ready to limit your losses if they do occur.

      Prepare to have your world turned upside down. And we don't mean it in the way you would think.

      2. Markets are unmoved by data. Humans are capable of doing so.

      There will be cases when price movement and data or market trends do not align.

      What is the reason behind this?

      Is it possible that the outcome was pre-calculated? Perhaps forex traders were not paying attention to the data that was released?

      Perhaps a large position on the wrong side of the tracks was covered by a body.

      Would all market participants behave in the same way in the event of an unanticipated catalyst?

      Whatever the price behavior, the decisions that drive a trader to act aren't always logical or consistent with the available data.

      When you factor in the millions of players, each with their own goals/strategies and accounts for trading of varying sizes, it becomes hard to predict where the total market will move at any one time.

      You can't totally get rid of risk by quantifying or calculating human behavior and uncertain future occurrences into an elegant mathematical equation.

      There will always be some element of uncertainty, and you will be on the wrong side of a currency market move at some point.

      Actually, you will be on the wrong side of a currency market move on several cases.

      Perfectionists should probably avoid this location.

      We must now give a warning to those of you who feel the need to be right all of the time...

      Nobody can foresee the market properly every time.

      However, if you refuse to listen and continue your search for the Holy Grail, all hope is not lost.

      According to legend, if you can spot a pink unicorn standing under a rainbow, an invisible leprechaun will show up and give you the Holy Grail. Best wishes.

    WikiFX,
    Next Lesson
    Wait patiently. Maintain your discipline

    Read more

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    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
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