what is a mechanical system ?

"Mechanical systems bring order to the chaos of the market, executing trades with precision and discipline, unfazed by emotions."

let's break it down step by step:

1. Explaining "Mechanical":

   "Mechanical" refers to something that works in a predictable, rule-based way, like a machine. In the context of trading, it means following a set of specific rules without any human emotions or discretion involved.

   Example: Imagine a vending machine. It operates mechanically because when you insert money and press a button for a specific item, it delivers that item automatically based on predefined rules, without any human involvement.

2. Explaining "System":

   "System" simply means a method or process that's organized and structured to achieve a particular goal. In the context of trading, it refers to a set of rules and procedures designed to guide investment decisions.

   Example: Think of a recipe as a system. It consists of a list of ingredients and step-by-step instructions for cooking a dish. Following the recipe precisely should result in a delicious meal.

3. Explaining "Mechanical Systems":

   "Mechanical systems" in the stock market are trading strategies that operate automatically based on predefined rules, without any human intervention. These systems follow a structured approach to identify trading opportunities and execute trades.

   Example: Suppose you have a mechanical trading system that buys a stock when its price crosses above a certain moving average and sells it when the price falls below another moving average. The system operates automatically, executing trades based solely on these predetermined rules, without any emotional influence.

So, a mechanical system in the stock market is like a vending machine for trading—it follows a set of rules (like inserting money and pressing buttons) to make investment decisions (delivering goods) without any human involvement, resulting in a more disciplined and systematic approach to trading.