section of our website.
23. Is there any kind of over-fitting risk on this system?
No. There is no kind of over-optimized or over-fitting risk on the system. These over-fitting problems occur when some trading system developers search the best values in many variables in a past historical data, in order to have the best results possible on a trading system and present them thinking the system would continue this way in the future. There can't be anything more wrong than that. Curve fitted systems only work well for the past but doesn't have predicting capabilities for the future.
It's easy to make a trading system giving profit in a past historical data, because those best values would be searched, but naturally in that case the system would fail in the future. Our systems are based not on specific behaviours of some crosses or part of their historical data, but in mathematical and technical analysis and methods, and for that reason, the same system works without being changed in its programming, very well for any cross or time frame.
As an example we can give our system at this moment. The same system is used nowadays for the EUR/USD daily and hourly time frames without being modified, and it will be applied in the future for other crosses also (requiring yet some testing first to be fully operational).
There is only one difference between those 2 systems; it's the system's parameters. A system can't work with the same parameters for those 2 time frames so they had to be found with tests.
Now, the tests made on system performances are made like this: In each of them there was a period of data in which the tests were made. In daily tests were made between 2001 and 2003, and in hourly candles between February 2002 and July 2003. Values were found there and since 2003, the system is working until nowadays with those values found on that 2001-2003 testing period, being until now with profits as can be seen on the system performance section without any other kind of recent optimization. We are planning to do an update maybe in 2006 to keep it working the best way possible. So as can be seen, the system is giving those signals in real time without any kind of optimization.
24. Is the system 100% mechanical?
Yes, the system is 100% fully mechanical. It's a pure 100% mechanical trading system. It is based on Technical Analysis only without any kind of human influence. So the influences of human emotions like the famous Greed, Fear or Hope are removed from the trades. The system can even look too cold sometimes but it's an automated system so it's natural for it to work that way.
It's not a mechanical group of instructions that a group of people may interpret and use to give the signals or even filter. That would put the possibility of human failure on the equation. The system is working non-stop 24 hours a day, 5 days a week, analysing data at the second, so when it decides to open a trade, it will update in a fully automated way our website's database and results table, so that clients may get access to them. The only role of humans in this system is to check if it's working well and avoid possible problems on our servers like connection problems and others, so we can direct our human resources to clients' questions in case there is some unexplained question in this FAQ or other matters.
, and we'll answer to all your doubts and if possible add them later to our F.A.Q. to help other clients that may have the same questions in the future.
so that we can test the email sending with that user in particular and check where the problem may be.