Trend trading systems and VMware images
Trend trading often means using the right software, e.g., a trend following robot. In a simpler trading setup it just means using a broker and an external trading system software that finds the most promising trends. Will that work? Most likely not! Read more about why it is important to bet on meaningful trends, which automatically means having some fundamental understanding of what is going on.
Despite all efforts and perceived successes in artificial intelligence, robotic trading advisers have severe problems to understand financial markets. The reason is somewhat simple, even if almost nobody of the AI adepts seem to grasp it.
Every AI system must be programmed. It has to get knowledge about the world that it has to understand.
AI experts underestimate what they have to teach their systems. Self-learning systems are a nice buzzword, but teaching an AI software means teaching it the surrounding framework. The program first has to be programmed so that it looks at things that are important, on a basic level. And these change in the world. It is even hard for a human to identify the framework. Essentially an AI trading system would have to be programmed with much more effort than it would take to keep human experts knowing current market circumstances. AI is today a magical eyecatcher and ear-opener. Nothing more. Trading AI is a dream and HFT, high frequency trading, is something people grossly misunderstand. Now guess what HFT combined with AI is. Right... vaporware! Still, trading works by sensing the next trend. Find a trend, get on a trend, exploit a trend. Trading software might help with getting on the trend. It also helps with overcoming psychological trading problems. But it will never help you with understanding the world better than humans and finding and evaluating trends better than human intelligence does it.
Judging financial trends is something human traders do better. That's why machine trading will be bound to technical trading systems that suggest entries and exits for a long time being - prediction! And that's also why Trend Sigma has some interesting trading systems solely based on technical analysis. On top of that, that's also why we are suggesting interesting trends ourselves...
Read more about trend and trading system news.
As a measure of letting such a system run smoothly we are offering also VMware images, sandboxes that are able to run a trading environment securely.