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Digg It - FOREX - Discretionary Or Mechanical Works Best?
When you are looking to find a “system” of trading forex markets, it does not matter how many books you read, how many magazines you invest in or how many websites you browse, trying to find something 'different".
There are basically only two types of Forex trading systems, tho
There are basically only two types of Forex trading systems, tho
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
se that we might call mechanical and those that are human driven or discretionary.
In this article, we shall try to investigate which type of system is better, or, if indeed, either one can be shown to better than the other.
In general, the trading signals that are generated b
In this article, we shall try to investigate which type of system is better, or, if indeed, either one can be shown to better than the other.
In general, the trading signals that are generated b
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
y mechanical systems are usually drawn from normal technical analysis techniques that are applied in an entirely rigid, automated manner.
Human beings, on the other hand, rely on experience, intuition and subjective insights to drive their trading activities.
So, is there any
Human beings, on the other hand, rely on experience, intuition and subjective insights to drive their trading activities.
So, is there any
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
objective test that will tell us that one or the other method of trading works best when applied in the real world?
Well, both trading systems have both advantages and disadvantages.
We might summarize these as follows:
Advantages: Mechanical
A mechanical system, by definiti
Well, both trading systems have both advantages and disadvantages.
We might summarize these as follows:
Advantages: Mechanical
A mechanical system, by definiti
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
on, assumes that the same action will be taken every time the same set of signals occur. Thus, in theory at least, it is very easy to back-test by applying these rules to situations that arose in the past.
The rules dictating when trades are entered and exited are fully automa
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ed, so everything is completely black and white. The signals tell you that there is a trade or there is not, period. Emotions cannot therefore play any part in trading decisions.
Advantages: Humans
Humans have the ability to adjust their actions to whatever is happening around
Advantages: Humans
Humans have the ability to adjust their actions to whatever is happening around
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
them.
Decisions based on experience are predicated on applying many, many factors to the decision that is made, some of which may change almost daily, and a human is adaptive enough to take this into account
Disadvantages: Mechanical
Although a mechanical system will produc
Disadvantages: Mechanical
Although a mechanical system will produc
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
e data that is 100% reliable, the trader using this date may not work to the same standards.
Forex markets never stand still. They change all the time, introducing new situations that a mechanical system (being based on past data) has never encountered before.
Nothing in forex
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
markets ever happens exactly the same twice! Almost exactly the same is not exactly the same, but a mechanically driven system cannot necessarily differentiate, or make allowances for this.
Disadvantages: Humans Systematic back testing is not so easy. Heck, it may not even be
Disadvantages: Humans Systematic back testing is not so easy. Heck, it may not even be
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
the same person making the decision this time as it was last!
Experience takes time, and, partially at least, relies on learning from mistakes. This could potentially be an expensive way to learn!
So, which one is better? Well, guess what? Neither is!
Which one is better de
So, which one is better? Well, guess what? Neither is!
Which one is better de
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ends entirely on who you are, how you trade, your ideas about money, risk, reward, and so on.
For some people a mechanical system will work.
For example, like the proverbial rabbit frozen in the headlights of the onrushing car, some people are too paralyzed by doubts and fears
For some people a mechanical system will work.
For example, like the proverbial rabbit frozen in the headlights of the onrushing car, some people are too paralyzed by doubts and fears
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
to ever make a decision – the dread of being wrong is almost overwhelmingly strong.
The pressure of having to make decisions will almost certainly cause this type of person never to make a decision at all!
A mechanical system, wherein a trade is only taken when the system say
The pressure of having to make decisions will almost certainly cause this type of person never to make a decision at all!
A mechanical system, wherein a trade is only taken when the system say
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
s so, will remove all of the pressure in these circumstances, and so, for this type of person, this is probably the way to go.
If, on the other hand, you can stay totally on top of your emotions, and are the kind of character that can stick to a highly disciplined regime, then
If, on the other hand, you can stay totally on top of your emotions, and are the kind of character that can stick to a highly disciplined regime, then
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
you are almost certainly going to make more money trading forex based on you own instincts and beliefs, assuming that you also boast the necessary experience.
As an example of this 'in action', your innate ability to think on your feet would really comes to the fore if, say, yo
As an example of this 'in action', your innate ability to think on your feet would really comes to the fore if, say, yo
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
u are in profit, having hit your original target, But, in this case, you believe that you could make more, by staying in the market. Your discretionary approach allows you to do so.
Say you originally set a 100 pip move as your profit target but, once that number has been hit,
Say you originally set a 100 pip move as your profit target but, once that number has been hit,
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ou clearly sensed that there is still further to go.
In this situation, after applying a few basic security measures like moving your stop loss up, perhaps to your original target if possible (so that becomes the minimum you will make, should the market turn) you just let it ri
In this situation, after applying a few basic security measures like moving your stop loss up, perhaps to your original target if possible (so that becomes the minimum you will make, should the market turn) you just let it ri
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
de for a little longer, a decision which is based on your experience and probably also on your 'gut feeling' hunch.
That is what applying discretion can do, but the extra pressure that changing your original decision can bring is not for everyone.
So, the bottom line is that t
That is what applying discretion can do, but the extra pressure that changing your original decision can bring is not for everyone.
So, the bottom line is that t
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
here are advantages and disadvantages to both approaches, and it is entirely a question of horses for courses.
Given that neither approach has, over time, proved noticeably more successful than the other, whichever forex trading style most suits your personality is going to be
Given that neither approach has, over time, proved noticeably more successful than the other, whichever forex trading style most suits your personality is going to be
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
the best one for you!
One final thing.
Maybe you are reading this now, thinking, well, heck, I don’t actually know what kind of trader I am, never having tried it before.
If that is you, I would thoroughly recommend finding a broker who will let you trade a free demo account
One final thing.
Maybe you are reading this now, thinking, well, heck, I don’t actually know what kind of trader I am, never having tried it before.
If that is you, I would thoroughly recommend finding a broker who will let you trade a free demo account
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
(which is actually 90% of the online brokerage houses nowadays) so that you can get more idea of where you stand.
But do remember that a demo account with pretend money does not really match the pressures and emotions that are part and parcel of trading with your own real money
But do remember that a demo account with pretend money does not really match the pressures and emotions that are part and parcel of trading with your own real money
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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