Reward is always commensurate with risk in finance. If you want nearly zero risk, you must accept very low rates of return. The conventional “risk-free” asset is a government bond of a country that has a strong ability and willingness to avoid default, li

Drawdown means the amount of loss taken in a position before recovery to the last highest profit. For example, you have made $1,000 trading Forex and then you take a series of losses for a total of $300.00 or 30%. At this point your account has reached it

The risks of trading Forex include: Country risk (e.g., ratings downgrade), Sovereign risk (e.g., asset-freezing, expropriation), Liquidity risk (no buyers if you are a seller), Credit risk (counterparty or broker fails), Price risk (price moves against y

An automated mechanical trading system not only delivers buy/sell signals, but also executes the trades on your behalf. If you have a day job, this is an efficiency you will appreciate. Automated systems also overcome the override problem, the most vexing

A mechanical trading system is one in which every single decision is made for you by a computer program that has been designed to generate buy/sell signals. Over long periods of time, mechanical trading systems outperform human judgment, chiefly because h