What is a trading strategy?
A trading strategy is a group of specific rules that determine the conditions and timing in which to buy or sell a given equity. Trading strategies are usually based on complex software using indicators (moving average, relative strength etc.) which create the strategy's rules.
| The advantages of using trading strategies
- Emotion free trading - it is a well known fact that traders are frequently influenced by emotions such as fear and excitement, which may cause them to stray away from their original trading plan.
- Accuracy of execution – the computer is not affected by fatigue or other human vulnerabilities which may cause mistakes such as pressing the wrong button.
- High speed execution – a computer can monitor and trade multiple markets simultaneously and react much faster than a human trader.
- Hands-free execution - once the trading strategy is running, the trader (subscriber) does not have to be tied-up to the computer. The server is the one handling the strategy management and execution.
- Improved decision-making - trading strategies can quickly and easily handle complicated calculations required for decision making processes, whereas a human trader may encounter difficulties.
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| Auto-execution through SE
Applying the automatic execution of strategies through SE means that once the strategy you selected starts running in your account the trades are executed automatically by the server.
Your intervention is not required! You don't even have to leave your PC running.
The automatic trading is made possible by Strategy Runner's proprietary technology that powered SE service. This unique technology can integrate with a variety of different applications by which vendors use to generate trades, and route them as signals to all Strategy Runner's servers located at the brokers' facilities. The signals are then executed by the servers in all subscriber accounts. This server-based approach ensures the most reliable and accurate execution of trading signals.
All strategies presented in SE are available for Auto-trading. | |
| Choosing the best strategy for you
We all want to know which is the best strategy of all… well, the truth is – there isn't one. There are many parameters involved; your individual preferences, your goals and your attitude towards risk exposure. This is why different people choose different strategies, just like they do in any other investment alternative.
Our objective is to provide you with live performance results and detailed data analysis on a wide selection of trading strategies, enabling you to make your own informed decision as to the strategy that best suits your investment goals. | |
Trading strategies are alternative investments
Alternative investment can be defined as an investment that strives to generate returns regardless of the overall market conditions. Hedge Funds, Managed Forex and Futures professional traders as well as trading strategies are all considered to be alternative investments.
The modern portfolio theory states that every investor should allocate 5-15% of their portfolio to none "buy and hold" correlated investments, i.e. to alternative investments. In simple English it means that in addition to having stocks or bonds, you should also invest 5-15% of the money in alternative investments in order to maintain a well balanced portfolio.
With SE it is now feasible for any investor to diversify his/her portfolio with an alternative investment for a much lower entry fee than is usually required by managed accounts or hedge funds. While traditional alternative investments require a minimum entry fee of $50K, SE allows any household investor to diversify with much lower capital requirement.
You can now diversify your portfolio with SE Strategies for as little as $5K per strategy.
More info:
strategyxchange.com
