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AUTOMATED TRADING SYSTEMS
Questions
Subjects to Be Covered
Advantages and disadvantages of automated systems
Appraising systems
Troubleshooting poorly performing systems
1. True or false: Mechanical systems can be used as a substitute for judgment and thinking.
A. True
B. False
2. Which is likely to be a better system?
A. One that has a perfect fit with historical data with one security
B. One that has a profitably consistent but imperfect historical fit over many securities
C. One that has a huge profit based on one or two signals
D. None of the above
3. What are some of the advantages of well-designed mechanical systems?
A. They remove objectivity.
B. They remove subjectivity.
C. They allow the trader to participate in every worthwhile move. ...
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