~~~ Trading FAQ ~~~
What are Zorro's system requirements?
Zorro runs on all Windows
PCs from Win XP on, and on Windows servers.
For running it on Linux or Mac, you'll need a Windows emulator.
Is Zorro really
100% free, even for live trading?
Zorro is really 100% free since
its development was sponsored. However when you earn more than $
30,000 per year with Zorro, a sponsorship is required. You can find
the license details
Is Zorro an online service?
No, Zorro runs on your local PC or on a
VPS. It does uses an online connection only for live trading or
for retrieving data.
Is Zorro a broker?
Zorro is not a broker. It is a software
tool. You need an account with a broker for trading financial
instruments with Zorro.
brokers are supported?
Zorro supports all brokers
and exchanges that provide either a trading API, a web based trading
platform, or the MT4/MT5™ trading platform. Major brokers
such as FXCM, Oanda, IB are directly supported trough their API.
Is Zorro development
ongoing, and how often will updates with new features come out?
Development is ongoing. New features are regularly implemented.
Updates are released every 3-4 months. You'll be notified of any
update if you've marked the checkbox on the download form.
Can I use other software tools or web based
broker platforms together with Zorro?
Zorro can be controlled by external software and can control other
programs either through an API interface, or by directly sending
key strokes and mouse clicks to a browser window or an application.
It can import and export data from or to spreadsheets, databases,
or other file formats. You can write own trading strategy DLLs in
any language, or convert trading systems from other platforms to
Zorro's C based script language.
hard is it to write a trading strategy script? I have no experience
with programming or financial math.
script programming and strategy development with the included
tutorial, the Black Book, or the online course.
It will take about 1-2 weeks, but is essential for success with algorithmic
trading. 90% of people learn programming quickly, but no one can tell beforehand
whether you belong to the other 10%. Try and find out.
I've heard that most trading tools
are scam. How honest is Zorro?
in the sense of selling useless products or services - is indeed a
major income source in the trading scene. It appears that private traders
are easier fooled than other groups of the population. But unlike the many "Forex Autopilots", "Trading
Robots", or "Advisor Services" offered on countless websites,
Zorro's included stategies are based on sound math, and their
principles are described and explained. They are free to use (or
not), and anyone can understand, backtest, verify, or replicate them.
Why was Zorro developed?
Zorro development was financed by a sponsor. The
intention was overcoming the limitations of retail trading platforms,
and promoting algorithmic trading to a large audience especially
in developing countries.
About Financial Trading
Can trading generate money with no
work? If so, why isn't everyone trading?
If 'work' means producing goods or services, trading can indeed
generate income with no work - just as playing the lottery. Unfortunately
the analogy doesn't end here. The human mind is not well suited
for finding trade opportunities in price curves. Technical trading
mostly depends on luck; skills or knowledge play a minor role. The
risk of losing some or all invested capital is about 65% per year
for any private trader, regardless of trading skills or experience.
Employed professional traders achieve an average annual profit of
about 3% above marke, by following rules and strict discipline.
There is no 'hidden wisdom' that would make someone a better trader.
Those are good reasons why people normally
stay away from financial trading. Aside from the risk, it's no fun
to stare at price curves all day. Day trading can be one of the
most boring and miserable jobs to be imagined.
Is a machine superior to a human
trader? If so, why isn't everyone trading with machines?
Even simple computer
algorithms easily outperform human traders and financial analysts.
Computers are superior to the humand mind in detecting price patterns, and adapting to market changes.
They are not affected by emotions or by all the pseudo-knowledge,
superstition, and myths circulating in the trader
scene. And they make no assumptions about of the future.
institutions, such as hedge funds and investment banks, are very
successful with machine trading. Most private traders are not, since
there is no easy access to the skills and software required for
serious automated trading. That's one of the reasons why Zorro
Which profit can I expect with automated
As with any trading method, there
is no guarantee of profit. In extreme cases, automated strategies
can return more than 100% annual profit on the invested capital
(Zorro's Z5 strategy returned 240% in live trading
from its start in July 2013 until its expiration in January 2015).
But this is not a certain income like from a savings account. Due
to market changes, trade profits can vary extremely from month to
month. It is not easy to predict the future performance of a strategy
- certainly not with simple backtests or with trading on a demo
account. Advanced test methods - such as walk forward analysis (WFA)
- can produce a more realistic profit projection. But even then
there's no guarantee to match theoretical profit in real trading.
Won't it negatively affect the financial
markets when millions trade with automated systems?
It depends. Trading supports the markets by providing liquidity,
but some trade methods, such as high-frequency trend following,
can have a destabilizing effect and cause market crashes. Other
methods - mean reversing or cycle systems - can stabilize
the prices. Zorro's included strategies use only methods that are
not supposed to harm the markets.
Automated trading - what's the catch?
Here's a list of problems you might encounter when you
let a machine trade with your money.
- Trading is not for anyone.
Aside from the usual trading risks, there are further risks associated
with automated trading, such as script errors or software bugs.
- Trading can become addictive, just like gambling.
does not produce any goods. It only redistributes money.
requires capital: at least $200 for trading one of Zorro's included
strategies, at least $10,000 for a substantial monthly income.
- Trading requires strong nerves. Even highly profitable strategies can
have long losing periods.
- Trading strategies
can expire. Massive market changes can cause profits to suddenly
stop with no prior warning.
Does financial trading serve any useful
purpose, or are traders just parasites?
Opinions are split, so we're just quoting the 1976 Rosenthal
report: "A basic freedom we have in virtue of living in
a capitalistic country is that we are free to speculate on the movement
of prices. This freedom does not require an additional justification,
such as promoting the interest of commercials. All that is required
is that the general public not be harmed and that the market place
be organized according to fair rules and procedures."
Where does the money come from that I earn
From two sources. One is the price
movement of the asset, which can generate (or destroy) money out
of nothing. The second source is other trader's losses. A good part
of your income could thus be sponsored by investment banks, hedge
funds, or other big financial institutions that employ traders.