A core tenant of trading, trading psychology especially, is that you should keep emotions out of trading. However, as we tell all our students and traders, and the people who talk to us (even while they are engaged within our forex funded account community) you cannot really exclude emotions hence why all the best trade plans involve contingency plans on how to manage your emotions and there are ways to describe people who do well and who do badly in the market.
Emotions and human nature (regarding decisions) are intertwined, they cannot be removed. Well, arguably one of the most consistent ways to remove the human error (emotion, in this case) is to use algorithmic trading, or algo trading for short.
But even an algo trading has its own challenges. Some of the challenges include, the ability to to code, knowing the right language to code in, or you have to work with coders, deciding if you what market concepts and, or statistical models the algo trading model with consider in its trading decisions alongside other factors such as deciding your parameters (technical indicators) and precisely define your rules since it will lack human discretion. However, once you master algo trading, you will be on the right path to success.
Algo trading and its particular branches and nuances would be beyond the scope of this article! However, I would like to draw attention to Phil Thomas, from the US who passed the evaluation for the CTI Forex Funded Account Program. and is now one of our portfolio managers?
And as you can gather, he did this by taking the the algo trading approach!
There is a common perception that algo trading works best on stock markets only, but Phil's performance in puts that myth to rest. He started with equities, then eventually found our forex funded account, a story which common with a lot of our traders.
He put in a lot of hard work, and after testing his strategy and having adjusted his risk management parameters to match CTI's risk management policy, successfully passed the evaluation for the his forex funded account and has now graduated into one of our Portfolio Managers with a $50,000 book. Check out his review on TrustPilot.
Without further ado, here is Phil's interview!