Monday, 23 March 2015

Don’t Fail To Plan In Financial Market

We have often heard about stories people ended up losing all of their money just because the market crashed wiping away all of the funds they had put into financial market. Usually this happens when people fail to plan well ahead of time about how to distribute their money across various instruments.

Sometimes people take risk and put all of their money into just one financial instrument. As a result, whenever there is a sudden upward or downward movement in that financial item’s value, it goes on to affects people’s earnings simultaneously.

It is good to take risk, still need to consider the negative impacts as well, also need to consider your position to afford losses. Otherwise, it is only wise to plan every single move of yours very wisely before you invest money into anything. This is why people need risk management strategy and systems.

Risk management strategies allow people to plan their investment in a way that puts minimum on the risk and yet provides plenty of opportunities for earnings passive income.

For example, diversification is the technique of financial investment; where instead of putting all the money in just one basket investors spread it over multiple items.  

Dragon Holdings

To know more about financial trading and risk management, do visit Dragon Holding:

Monday, 2 March 2015

Purpose Of Back Testing In Designing Auto Trade Systems

There is no area of life that has remained untouched by technology. One of its rather new offerings is algorithmic slash automated trading which is conducted through auto trading systems. It means letting a machine do all the work for a human trader such as collecting, analyzing and interpreting the financial data and using it to find out most viable trade option.

At first it may sound how can a machine do all that. But it is true! Before an auto trading system or software is launched it is tested for its efficiency via back testing.

Back testing implies to trading uses associated with historical market data in order to determine how viable the idea would be. For a system that is supposed to do something as critical as place financial trade orders, all the rules must be established in an absolute way, meaning the program cannot go to make guesses.

It must be fed with precise instructions telling it exactly how to do and what to do. To make sure whether the designed system is capable of making sound decisions, programs are fed with historical data on which the set rules are implemented. This way a trader can figure out the efficiency of the system before risking his money.  Careful back testing is essential to fine tune the system for trading ideas.

Dragon Holdings AG:

This German company owned by Niraj Goel, is known for devising auto trading systems, after careful back testing.