DislikedI think the real question here is:
Do you want to be a... computer programmer who knows about trading?
...Ignored
Automated Trading & ONLY Auto Trading 3 replies
Automated or semi automated trading? 3 replies
do automated trading systems work or... 21 replies
Automated trading vs Manual Trading 17 replies
Tradestation soon to be offering automated Forex trading 7 replies
DislikedI think the real question here is:
Do you want to be a... computer programmer who knows about trading?
...Ignored
DislikedYES I DO. {not a shout, just trying to emphisize} I've been a Trader and prefer the other option.Ignored
DislikedI would disagree. Traders who are successful feel no different whether they win or lose. Doesn't matter. So an automated system is nothing more than a nice way to, "make money while I sit on the beach."
People laugh at that statement. But I know people who do it.
IMO, there's nothing better than to come home from work, check the P/L, think to yourself, "Well that's cool, I made X today.", and go back downstairs and enjoy a movie with the wife.
Now is it enjoyable to trade. Heck yeah. There's nothing better than having an automated system doing it's thing, and perhaps trading on the hang seng every night for a little intraday. That's enjoyable.Ignored
DislikedThis can get into a circular argument real quick when it comes to the discussion of emotions. IMO, if there is money to be lost, and you are trading for profits, there is always some fear of losing whether you get it down to .01% of your total emotion or you're scared sh*tless.
But I definitely agree, a good trader keeps the emotions down.Ignored
DislikedLesson Number Biggy for those observing....
"a good trader keeps the emotions down."
Mr. Trend
Ignored
DislikedI thought I said that....
"a good trader keeps the emotions down."
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DislikedI would disagree. Traders who are successful feel no different whether they win or lose. Doesn't matter. So an automated system is nothing more than a nice way to, "make money while I sit on the beach."
People laugh at that statement. But I know people who do it.
IMO, there's nothing better than to come home from work, check the P/L, think to yourself, "Well that's cool, I made X today.", and go back downstairs and enjoy a movie with the wife.
Now is it enjoyable to trade. Heck yeah. There's nothing better than having an automated system doing it's thing, and perhaps trading on the hang seng every night for a little intraday. That's enjoyable.Ignored
DislikedI don't think automated trading itself is the culprit for failure. But when it gets in the wrong hands it is dangerous. If the user doesn't understand optimization, walk forward analysis, sample ratios, testing methodologies, and establish some kind of maintenance schedule then they are doomed.
Automation doesn't last forever and I think where most get into trouble is having an objective method for taking the system offline before their account is wiped out.Ignored
DislikedIf you believe mechanical systems work, automated trading is the way to go due to the fact that it eliminates emotions.Ignored
DislikedRegarding automated systems, I actually do not know anyone personally who does it but do know that the big Managed Futures firm Winton Capital in London is automated 100% and their track record is spectacular. I met with some of the staff a few years ago and their roster was mainly stat and heavy math folks - not a trader among any of them.Ignored
DislikedAgreed, but sometimes emotions are useful in trading. They are not always bad, sometimes they save you a big loss or reap you a large profit. Despite the fact that this is not fully correct of professional, but I believe that emotions are essential as long as your emotions do not run to the extreme.
Thanks,
NaderIgnored
Disliked.
I also do believe that if I am a smarter discretionary trader than the hundreds heavy math folks there, I would be taking the money out of their pockets.Ignored
Dislikedim not so sure about currencies, but i know on wallstreet its a well known fact that the automated systems are taking huge money out of the market. dont have a cite, but i think something like 80% of all volume on ECNs like arca and brute is done by automated systems.
one of the classic systems is an automated version of what turbokaos is famous for doing. placing limit orders far off the market, trying to catch someone throwing out a market order when they shouldnt be. you can see these orders "at work" on the order books, always shifting around looking for a victim!Ignored
DislikedThat's what makes trading fun. They believe just the opposite. Your equity curve is how you keep score.Ignored
DislikedI know that they believe just the opposite and that they always think that if they can just program the complete or near perfect trading system, nobody would be ever able to beat it.
But to tell you something, the human mind is invincible. I never heard of a chess program that managed to stay unbeaten against human minds, this is why I do believe that we shall never hear of an automated trading system which is unbeatableIgnored
DislikedAutomated trading systems (and chess programs) don't have to be unbeaten to be successful, they just have to have a positive expectancy. If you beat an automated trading system 4 out of 10 times they you are still the loser.
The point of an automated system in not to be perfect, it is to execute trades on your behalf. No amount of math can accurately predict the randomness of the market with a high degree of certainty.Ignored