; Making money when markets change
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Making money when markets change


If there is one fatal error that most beginning traders make, it is the belief that building a simple system will help them achieve their trading goals. While building systems can be quite beneficial to traders, many aspiring and veteran developers think too one-dimensionally and in so doing try to define a certain market too specifically. With today's technology, anyone with the will can gather financial data, learn to program and begin executing trades at a minimal cost. For traders of all levels, there is no shortage of model-building software available. The first approach is to come up with a specific market logic or "truth" and transfer that into the language of choice. The second approach is to write a model that is flexible with various market conditions -- in other words, adaptable. Allowing trading models to have a certain amount of freedom by requiring them to process a larger number of market generalities, as opposed to specifics, will allow the strategy to be more adaptable in the long run.

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