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Advantages of trading automation

  • #21
  • Mar 27, 2019 7:33am Mar 27, 2019 7:33am
Quoting HeyYou
{quote} Oh yeah I got sick of that after a couple hours. I know few systems that have potentials IMO and cannot be automated.. but since I have no time and NERVES for that stuff ... if I can't backtest it in the long term (10 years AT LEAST, as you suggest)... I don't touch it!
I do not understand why such great systems of yours cannot be automated.
Did you actually ask someone who knows how to automate strategies to do it?
I like what I trade, I trade what I like
  • #22
  • Mar 27, 2019 11:04am Mar 27, 2019 11:04am
Quoting togr
{quote} I do not understand why such great systems of yours cannot be automated. Did you actually ask someone who knows how to automate strategies to do it?
I have always been fascinated by brekout from consolidations.. my first "serious" attempt at trading was based on said strategy.

I was trading the H4 so the need for scalability wasn't the real problem.. my problem was sticking to the plan and automation really helped.

I was able to automate things like EW 123 abc but to automate this one I'd need to ask someone from the NASA.

Oh well I guess I must content myself with my other systems, even though they are not as good as yours
  • #23
  • Mar 27, 2019 12:15pm Mar 27, 2019 12:15pm
The logic behind the thread starter its simple and can be resumed like this:

write down your "rules" to place trades, how much % each and the targets (SL,TP) bla bla.. NOW pass that little paper to someone that NEVER TRADED IN THEIR LIFE, teach them how to use metatrader, open a demo account and tell them to trade...

If you CAN NOT do it, then you have NO clear rules, no consistency and no "edge" that can not be exploited everytime it happens.. you are fooling yourself

Its those conditions the one that can be exploited by a robot 24/5 nonstop
  • #24
  • Mar 29, 2019 7:42am Mar 29, 2019 7:42am
Quoting HeyYou
{quote} I have always been fascinated by brekout from consolidations.. my first "serious" attempt at trading was based on said strategy. I was trading the H4 so the need for scalability wasn't the real problem.. my problem was sticking to the plan and automation really helped. I was able to automate things like EW 123 abc but to automate this one I'd need to ask someone from the NASA. Oh well I guess I must content myself with my other systems, even though they are not as good as yours
I do not actually know anything about your trading results, your trading systems and your trading skills.
Yet my point is still valid, good trading plan should be crystal clear (not crystal ball).
Such trading plan is IMHO worth the effort to be automatized.

Moreover with overall progress of automatization of all areas of our life it is only matter of time when robots will simple overcome human traders.
I like what I trade, I trade what I like
  • #25
  • Mar 29, 2019 7:45am Mar 29, 2019 7:45am
Quoting havo
The logic behind the thread starter its simple and can be resumed like this: write down your "rules" to place trades, how much % each and the targets (SL,TP) bla bla.. NOW pass that little paper to someone that NEVER TRADED IN THEIR LIFE, teach them how to use metatrader, open a demo account and tell them to trade... If you CAN NOT do it, then you have NO clear rules, no consistency and no "edge" that can not be exploited everytime it happens.. you are fooling yourself Its those conditions the one that can be exploited by a robot 24/5 nonstop
Yes that is.
either you have clear trading plan which could be automatized
or you dont and you should not trade be it manually or auto.

The thing is that people consider trading robot as some magic holy grail developed by someone else sold for big money.
That is so wrong! Trading robot is your good old trading idea with relief of actual trading done by robot.

P.S. I haven't seen a well defined strategy which I was not able to code to robot.
I like what I trade, I trade what I like
  • #26
  • Mar 29, 2019 1:23pm Mar 29, 2019 1:23pm
You are talking about some great diversified system but I only see a simple grid. Your myfxbook is also full of grids so I really dont know what you are talking about.
  • #27
  • Mar 30, 2019 2:26pm Mar 30, 2019 2:26pm
Quoting togr
{quote} I do not actually know anything about your trading results, your trading systems and your trading skills. Yet my point is still valid, good trading plan should be crystal clear (not crystal ball). Such trading plan is IMHO worth the effort to be automatized. Moreover with overall progress of automatization of all areas of our life it is only matter of time when robots will simple overcome human traders.

yeah that's why people need discipline in trading, because the plan is not "crystal clear"..... good point.
  • #28
  • Apr 14, 2019 7:24am Apr 14, 2019 7:24am
Discretionary trading is done with intuition and knowledge, rules only for the management of capital / number of positions.
If you have any trading rules that you need to follow mechanically, make an ea and let him work. What is the point of following the rules yourself if a robot can do it?
The real advantage must be your knowledge and your intuition.
If a robot can do it for you, it makes no sense to spend time on the PC.

ps. Banks and institutions invest millions in professionals who analyze the market.
the market is changeable.
The robots stop working sooner or later, and if you let them instead of looking at those charts, stop working too.
  • #29
  • Edited 4:29pm Apr 14, 2019 10:11am | Edited 4:29pm
Discretionary trading has its advantages when it comes to generating unique trading ideas in specific trading environnement, this kind of trading/investing is difficult to emulate using automation for the common mortal due to the lack of common denominator for each situation/trade idea. However, as it has been stated, automation has its clear advantages in terms of stabilizing more mechanical or math based trading plans.

With that being said, has anyone here had experience with building a portfolio of automated strategies? I've been toying with the idea as of late. It is quite simple at its core but there seems to be a lack of info on the subject. The concept is based on modern portfolio theory which simply states that if you have 2 securities with imperfect correlations and positive return expectancy the risk reward characteristics of either of the securities bought individually will be less then if both securities were bought as a portfolio. Problem is that when markets go south most securities become heavily correlated which kind of defeats the purpose. If we were to diversify strategies instead of securities we could get around that problem.

For exemple, trend following strats don't do well when counter trend strats are outperforming and vice-versa but if we can find strategies with positive expectancy for both cases we could then build a portfolio of strategies that would outperform either strategy on its own on a risk reward basis.

Any feedback on this idea would be appreciate
  • #30
  • Apr 15, 2019 2:21pm Apr 15, 2019 2:21pm
Quoting ArtVendelay
Discretionary trading has its advantages when it comes to generating unique trading ideas in specific trading environnement, this kind of trading/investing is difficult to emulate using automation for the common mortal due to the lack of common denominator for each situation/trade idea. However, as it has been stated, automation has its clear advantages in terms of stabilizing more mechanical or math based trading plans. With that being said, has anyone here had experience with building a portfolio of automated strategies? I've been toying with...
yeah I think that system diversification is the ONLY solution. but if you spend enough time back-testing you'll come to the conclusion that either you trade with the trend or with the noise. so diversification is good but only when it comes to trend foloowing.

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  • #31
  • Apr 15, 2019 3:41pm Apr 15, 2019 3:41pm
Here the secret of traiding :
https://www.forexfactory.com/showthread.php?t=909699
  • #32
  • Apr 15, 2019 3:48pm Apr 15, 2019 3:48pm
Quoting HeyYou
{quote} yeah I think that system diversification is the ONLY solution. but if you spend enough time back-testing you'll come to the conclusion that either you trade with the trend or with the noise. so diversification is good but only when it comes to trend foloowing. {image}
thanks for the reply, I agree that fading trends is a high wire act but I do not know why, mean reversion is so tempting to me, maybe because the math behind it looks so good in theory,

having a portfolio of both positive expectancy counter trend and trend following strategies would be the perfect diversification..

too bad that in practice the markets don't seem to care much about these maths.. maybe having a combination of breakout and retracement strategies both following prevalent trends would be easier to achieve.

But, to the point of this thread, automation opens up possibilities unavailable to the purely manual trader, I just need to be a better coder to test it for myself haha
  • #33
  • Apr 23, 2019 12:18am Apr 23, 2019 12:18am
Depending on where you live in the world EA's can give an advantage from constant night time trading manual systems.
Some people say I'm lucky, but the more I practice the luckier I get
  • #34
  • Last Post: Apr 23, 2019 11:31am Apr 23, 2019 11:31am
average down and -8.1% is no good.. do not trust straight lines.

good systems do not perform well each month, quarter, year..

at least this one is controlled martingale. there are TEs that are much worse, showing nothing but straight lines....so hilarious
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