Exploiting a Mechanical Trading System
Submitted: 25 Jul 10 14:26
 

For a trader that base his trading decisions on a mechanical trading system, he is exploiting the repeat occurrence of a market scenario where that scenario can be quantified mathematically.

That could be established by a combination of indicators, highs and lows or chart patterns.

The benefit of using a pure mechanical approach is the absence of subjectivity and thus lowers the possibility of judgment errors.