A True Pro Teaches You Kindly to the Limit! Takami Murii's Systematic Trading Introduction | ② Why You Should Validate Before Trading
This is a super-beginner level course on system trading that is accessible to everyone, led by Takashi Murai, famous as a pioneer of system trading, and his staff Ryoma Yoshida. The second session provides an explanation about the effectiveness of verification.
*This article is a reprint and editing of an article from FX攻略.com September 2018 issue. Please note that the market information described in the text may differ from current market conditions.
Profile of Takayo Murai
Murai Takayoshi. Chairman of the General Incorporated Association Japan Trader Coaching Association, President and CEO of Excelent Horse, and Principal of the Super Trading School REED. A leading figure in “NLP Trading,” which teaches modeling methods of top traders both domestically and internationally based on NLP psychology, and an active system trader. He works nationwide as a coach specializing in traders and as a guide for investment methods. Currently, he trains coaches who provide high-level skills to Japanese individual investors and engages in writing, lectures, and seminars. Certified Technical Analyst (CMTA) by the NPO Japan Technical Analysts Association and Master Practitioner certified by the American NLP Association.
Profile of Ryuma Yoshida
Yoshida Ryuma. In 2013, after taking Murai Takayoshi’s “NLP Trader Coaching” course, he achieved a positive turn in his lifelong performance. In November 2016, moved from Chiba to Fukui in agreement with Murai’s philosophy and passion for trader education, and joined the staff of the Super Trading School REED. A current system trader with 11 years of trading experience. Markets he handles include Nikkei 225 futures, FX, commodities, and cryptocurrencies, among others.
Use the program to make efficient verifications
YoshidaTeacher Murai, this month’s theme is verification, isn’t it?
MuraiYes. Verification is a very important task, so I’ll explain it with enthusiasm.
YoshidaFirst, what does verification refer to in terms of the work?
MuraiIt means examining what the results would be if you actually applied a method (system) idea to past market conditions. This is what we call verification. It’s almost the same meaning as backtesting.
YoshidaWhat methods exist for verification?
MuraiThe simplest is to go back through historical charts, pretend you bought and sold, and record the results. It’s a very hard and exhausting method, but with enough perseverance anyone can do it.
YoshidaA manual/visual approach. There are also methods using programming, right?
MuraiYes. If you create an MT4 EA (automatic trading program) or write a program in Excel, you can verify against past markets.
With this method, although there is a high hurdle to program or purchase, you can delegate calculations to machines, making it very fast. And the accuracy is high as well.
YoshidaThat’s my strength area.
