Is it possible to create automated trading strategies for all market conditions? Market trend goes up, down or sideways

(Last Updated On: August 22, 2011)
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Is it possible to create automated trading strategies for all market conditions? Market trend goes up, down or sideways. Do system recognise the trend, before implementing its trades?

Google “trading regime change”


You could look at the problem differently. Rather than try to forecast whether we are going into a trending period or a range trading one, you can distinguish between instruments that mean revert vs. those that don’t. Then you combine the two and you are relieved of the problem of predicting what kind of market you are heading into.
You can also trend screen a reversion model.


I think this is possible, yes.
If you have some diversification for your portfolio and if you run several good strategies tuned with different phases in the market.
I’m actually doing that with 2 strategies, trading 11 different FX pairs. And I am working on another set of strategies that will trade on the futures market, bringing even more diversity to my portfolio.


So, you are asking if we can predict the future. I say NO.

But, building a strategy that has a better chance of winning (more success and less failures). Then I say YES.

Part of Market game depends on chance so, I think it is always about increasing the probability of success than having a perfect solution.


This is possible when trading fair values on long/short strategies


If you mean a system of strategies (plural) then yes. A single strategy no.



NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at