Blog
Eric BriggsBearishWhat Is a Fork in Crypto? How Fork Events Can Impact Your Trading
Splits of blockchain into two are called forks, and they are the most violent and misunderstood events in the entire space. There are still debates around Ethereum forks, which block they should happen at, which chain is the ‘main’ one, etc. This guide explains what is a fork in crypto, why forks happen, how they tend to affect price, and what traders on Pocket Option should know when a fork is about to happen.
Eric BriggsBearishProof of Work vs Proof of Stake: How Consensus Mechanisms Affect Crypto Trading
Bitcoin and Ethereum, two largest cryptos by market capitalization, run on entirely different engines. BTC uses Proof of Work concept. Ethereum uses Proof of Stake. In this guide, we explain the difference between proof of work and proof of stake, compare the two, and show how the consensus mechanism is important to trade cryptos well on Pocket Option.
Albert RobertsonBearishBacktesting Trading Strategies Turn Raw Ideas into Tested Plans
All traders have ideas. In fact, most of these ideas are incorrect. The difference between a trader who finds that out while testing his trading strategy on a demo platform and a trader who finds that out trading real money is, broadly speaking, the difference between training and losing money. Backtesting of trading strategies is the process of applying a certain set of trading rules to the historical prices data and evaluating its outcome. Backtesting doesn't predict anything but helps filtering out trading strategies that didn't work historically. And this alone makes backtesting one of the most valuable tasks a trader can do prior to starting live trading. In this article we'll explain everything about it: How to develop a trading idea into trading rules and run them on historical prices data. How to evaluate the results using appropriate metrics. And how to verify the system on the demo platform of Pocket Options before risking any real money.