How do I know if a trading system is random

Is there a way to know if my trading system is random?

I am not sure what exactly your question is, but random or not random if trading system is profitable for more than 9-12 months than it doesn’t really matter if it random or not.

This post was flagged by the community and is temporarily hidden.

If over a sufficiently large number of trades you find that the average net profit is basically equal to the bid/ask spread (meaning slightly negative) when looking at just the exchange rate move you capture (leaving out position sizing) then your system is essentially random - or close enough not to make any real difference.

Hi Bryan,

A good gauge would be to track around 100 trades of that system.

That should give you a good indication on whether your system is profitable or not in a more ‘consistency’ manner.

I guess the next question is “is the market random too” in which case what happens when you also use a random trading system :wink:

This isn’t really true. If I get 50% losses and 50% winners and my winners pay out 2:1 Reward to Risk…try and be more specific with your answers, it helps others if you can justify and/or quantify an example to back up what your saying.

Any system that consists purely off of a pair of indicators of which you don’t fully understand should be random at most.

No matter how technical you are you should be aware of the forces that drives the price to move up or down.

In my opinion (it’s only my perspective) forex is all about probabilities and you control your risk. If I were you I wouldn’t want my system to be random.

I think all forex business is random.it is not pre planed or fix.We think some thing and happens another in trading . We have to choose the point where we can deal easily. See marker price, charts and trend to set your positions and monitor them well so that you can close them at a right point.

my broker liteforex allow me to use scalping trading strategy it is very profitable

This post was flagged by the community and is temporarily hidden.

A random trading system consists of closing your eyes and hitting Buy/Sell. I have to think you Cant have a random system, as in random basically means blind assumption to all that matters. In the long run, just like the coin flip, the further out the repetitions, the closer the equilibrium of everything is median. Ultimately a waste of time and effort.

Nothing is random in trading, NOTHING.

That is very good question. We have to define what exactly should be random - results, rules? If you will have rules that make sense (not random clicking), then we are talking about results. If you are a mechanical trader (strictly defined rules) your rules (strategy) should be passed stress tests. It is crucial to have a good prove that you did not select some rules, which worked in past. This is a very hard process that you have to have. And also If you will have it, you have to pay attention on many other things (end of effectiveness etc.).