I've been wanting to dig into this question for quite some time, but have been busy with some visual EA development lately, so I've not posted this here until now.
I've worked with two MQL coders in the past and in each instance, there came a point in the relationship where it became clear to me that the MQL coder really did not have a wealth of trading experience, or more importantly, an understanding of what makes good Trade Logic. They were both excellent programmers, no doubt.
I probably worked with two individuals who if they were known, might be considered top notch MQL developers, with other programming languages under their respective belt as well. But, when it came down to understanding what I call the Theory of the Market, which is my starting point for developing any new Indicator design, they simply had no follow-through from a logical standpoint on how to get the indicator to reveal what was important about the underlying theory.
So, before I begin, I wanted to make it clear that this is not an attack on developers either in specific, or in general terms. This is just to air out the question of the perception that many people have with respect to Developers and their trading skill.
Some developers (especially those who have mastered MQL), don't ever come straight out and make the proclamation that they are consistently profitable traders. But, if you note their replies to non-programmers and non-developers, you detect a distinct aroma of headiness with respect to their capabilities as developers and how that 'may' translate into their capabilities as traders. I've been aware of this aroma of headiness for years now, and I'm always taken back by the insinuation and/or the implication. Though it is never really spoken by anyone, many coders imply in the tone of their posts, that in order to become a successful and consistent trader, one must learn the programming language of some trading platform, or at least be somewhat familiar with it - whatever that means.
There is a clear distinction between Software Programming and Trade Logic. Can they be related? Of course, they can and often times are related, but that which drives any software code related to trading, must come from some source of trade logic. In other words, it is the Logic that drives the Code, and get the impression often times that some programmers forget this fact.
So, for example, as a successful and consistent trader, you find that you would like to do something using a platform's trading language, but you find that doing so, is not possible unless you know the source code underlying what it is you want to accomplish, and you express your thoughts that in your mind, you believe the entire process for accomplishing what you need should be much more easily done within the trading platform itself without coding; you are told that you might be approaching the entire idea with the wrong attitude and that you either learn the platform's source code, or do something else. I've often wondered whether or not that particular developer, understood what it means to be a consistently successful long-term trader.
Trade Logic, is the idea that turns a market condition into a profitable position, by executing a trade based upon careful historical research, design, development, testing, analysis and proofing, of a theoretical principle that contains a high enough degree of probability towards an expected outcome. Software development, is not even remotely close to being the same cerebral process.
At the core, trade logic implies a highly engaged inter-communications process involving both left and right hemispheres of the brain, including an extremely high degree of engagement and coordination with the Visual Cortex. Anyone that has ever conceived and designed their own unique set of indicators, can and will attest to this high level of coordination between these three centers of the brain. The level and depth of the coordination between the three, when conceiving and/or giving birth to a brand new indicator design and/or type/classification, can be all consuming at times - as it take every ounce of intellectual horsepower that one can muster, to bring into existence that which never before existed. And, that's just the Indicator design level. Actually, integrating a set of new indicators together, to form a synergy of output that yields a high degree of probability for accurately describing predicted market behavior, is another world unto itself - again, far removed from writing software code based on a per-selected script of specifications.
In other words, conceiving, developing, designing, researching, testing, analyzing and then optimizing a high probability, fully integrated trading system that accurately performs the task of projecting market behavior before it happens and to a high degree of probability, and within any market condition (bull, bear, flat and transition), is a rather daunting task for anyone, regardless of their former background.
Yet, I continually hear the inference that somehow, being a software programmer is going to make me a better trader, than if I were not a software developer. Of course, my personal experience in working with a couple software developers as revealed the exact opposite. I have found that some coders get so locked into the various rules of development, that they don't demonstrate the creative bandwidth to see beyond the obvious, such that they are able to develop their own indicator and/or theory of the market designs. So, they end up taking an already existing indicator design and re-writing the underlying code, such that it looks different and behaves in a slightly different way - but the underlying theory of the market remains the same.
So, let me open up the floor on this question, because I think it is a very interesting question, indeed. We see a ton of EAs out there for Sale. Obviously, non-programmers and non-developers are not the source of these EAs for the most part. Yet, we continually find that in almost all of the cases, some EAs run fine during certain market conditions - for example, a Bullish EA design works great in a Bullish market. However, when that market changes its type, the EAs performances drops considerably. Or, a Flat Market EA works great in a channeling market, but once the market goes vertical, the EA breaks down. We see this over and over again, all across the net.
So, what's the real deal? Do developers make better traders, and if so, what it is about software writing skills that makes one a better trader under all market conditions? Why has Silicone Valley, not replaced Wall Street, or the City in London, as the prime source of "traders" world wide?
Just curious.
iD
I've worked with two MQL coders in the past and in each instance, there came a point in the relationship where it became clear to me that the MQL coder really did not have a wealth of trading experience, or more importantly, an understanding of what makes good Trade Logic. They were both excellent programmers, no doubt.
I probably worked with two individuals who if they were known, might be considered top notch MQL developers, with other programming languages under their respective belt as well. But, when it came down to understanding what I call the Theory of the Market, which is my starting point for developing any new Indicator design, they simply had no follow-through from a logical standpoint on how to get the indicator to reveal what was important about the underlying theory.
So, before I begin, I wanted to make it clear that this is not an attack on developers either in specific, or in general terms. This is just to air out the question of the perception that many people have with respect to Developers and their trading skill.
Some developers (especially those who have mastered MQL), don't ever come straight out and make the proclamation that they are consistently profitable traders. But, if you note their replies to non-programmers and non-developers, you detect a distinct aroma of headiness with respect to their capabilities as developers and how that 'may' translate into their capabilities as traders. I've been aware of this aroma of headiness for years now, and I'm always taken back by the insinuation and/or the implication. Though it is never really spoken by anyone, many coders imply in the tone of their posts, that in order to become a successful and consistent trader, one must learn the programming language of some trading platform, or at least be somewhat familiar with it - whatever that means.
There is a clear distinction between Software Programming and Trade Logic. Can they be related? Of course, they can and often times are related, but that which drives any software code related to trading, must come from some source of trade logic. In other words, it is the Logic that drives the Code, and get the impression often times that some programmers forget this fact.
So, for example, as a successful and consistent trader, you find that you would like to do something using a platform's trading language, but you find that doing so, is not possible unless you know the source code underlying what it is you want to accomplish, and you express your thoughts that in your mind, you believe the entire process for accomplishing what you need should be much more easily done within the trading platform itself without coding; you are told that you might be approaching the entire idea with the wrong attitude and that you either learn the platform's source code, or do something else. I've often wondered whether or not that particular developer, understood what it means to be a consistently successful long-term trader.
Trade Logic, is the idea that turns a market condition into a profitable position, by executing a trade based upon careful historical research, design, development, testing, analysis and proofing, of a theoretical principle that contains a high enough degree of probability towards an expected outcome. Software development, is not even remotely close to being the same cerebral process.
At the core, trade logic implies a highly engaged inter-communications process involving both left and right hemispheres of the brain, including an extremely high degree of engagement and coordination with the Visual Cortex. Anyone that has ever conceived and designed their own unique set of indicators, can and will attest to this high level of coordination between these three centers of the brain. The level and depth of the coordination between the three, when conceiving and/or giving birth to a brand new indicator design and/or type/classification, can be all consuming at times - as it take every ounce of intellectual horsepower that one can muster, to bring into existence that which never before existed. And, that's just the Indicator design level. Actually, integrating a set of new indicators together, to form a synergy of output that yields a high degree of probability for accurately describing predicted market behavior, is another world unto itself - again, far removed from writing software code based on a per-selected script of specifications.
In other words, conceiving, developing, designing, researching, testing, analyzing and then optimizing a high probability, fully integrated trading system that accurately performs the task of projecting market behavior before it happens and to a high degree of probability, and within any market condition (bull, bear, flat and transition), is a rather daunting task for anyone, regardless of their former background.
Yet, I continually hear the inference that somehow, being a software programmer is going to make me a better trader, than if I were not a software developer. Of course, my personal experience in working with a couple software developers as revealed the exact opposite. I have found that some coders get so locked into the various rules of development, that they don't demonstrate the creative bandwidth to see beyond the obvious, such that they are able to develop their own indicator and/or theory of the market designs. So, they end up taking an already existing indicator design and re-writing the underlying code, such that it looks different and behaves in a slightly different way - but the underlying theory of the market remains the same.
So, let me open up the floor on this question, because I think it is a very interesting question, indeed. We see a ton of EAs out there for Sale. Obviously, non-programmers and non-developers are not the source of these EAs for the most part. Yet, we continually find that in almost all of the cases, some EAs run fine during certain market conditions - for example, a Bullish EA design works great in a Bullish market. However, when that market changes its type, the EAs performances drops considerably. Or, a Flat Market EA works great in a channeling market, but once the market goes vertical, the EA breaks down. We see this over and over again, all across the net.
So, what's the real deal? Do developers make better traders, and if so, what it is about software writing skills that makes one a better trader under all market conditions? Why has Silicone Valley, not replaced Wall Street, or the City in London, as the prime source of "traders" world wide?
Just curious.
iD
The Event Horizon