We need to use some more 3x5 cards. First I will explain what to do with the cards already made up. In automation, a database is used. "Fields" represent specific data elements which make up the database. The stack of 3 by 5 cards represents all the elements of the database. just as Keynes defines paradigm theory, coding theorists define the "normalization" of fields in automation. the pile of 3x5 cards is the RAW data. It includes the data from the market and all the added degrees of freedom of the system (About 70). divide the piles into the First Normal Form. divide each of the First Normal Form piles into the Second Normal Form. divide each of the Second Normal Form piles into the Third Normal Form. From this work you see how to interconnect things by using primary keys in each pile and "wiring" together the system of "tables" with commands which build the dynamic analysis table and how the analysis leads (See MADA) to the dynamic profit segment "table". You see noise, anomalies, and flaws. what is done ordinarily is ADD trader fields for risk and money management. They preserve capital mostly by eliminating the use of capital. The alternative I used was to deal with these items by writing out more 3x5 cards. Then I placed the cards appropriately. Here is where the cards go: 1. finish the lateral set of elements system 2. Iteratively refine the gates and kills for the EE's. 3. Do not use RTL's within laterals. 4. when an AND of EE's occurs, then do not assign a P1 at the EE unless the prior EE is a FS and a FS is in the AND. In the last few years, for every day of trading, the maximum length of a lateral is 36 bars. It is very easy to conclude using Science and maths, that anyone who sees noise, flaws or anomalies is using an incomplete system. As we see here, the OP is going to create an incomplete system. He decided to compensate by using risk management and money management. This means he has a trading performance yield in a certain range. One year at TradersExpo, Worden Bros was processing trading systems on their new drag and drop. They assembled the PVT quickly but could not use a Universe. They substituted the NAZ 100. The backtest performance had a Sharpe Ratio of 60 plus. Obviously, there was something wrong. Worden immediately erased the work; but they did repeat their D and D work only to find they were exactly wrong again. This time they saved the system I gave them. The PVT system is complete. when used with a good Universe it really makes money. When you setup SCT using SQL you double capital every one to three days. When automating, it is important to complete the work. then there is no programming for risk or money management required and all the capital can be put to work. All of this is done by paying attention to principles.
In trading, the most money is made when the trader is using 100% of his potential. By using a very slow fractal money is made slowly as well. Practically nothing that is going on in the markets is seen. A Greenwich group called LTCM applied risk and capital management to their system. 11 brokerage houses each contributed 300 million to resolve the damage done to the innocent by the LTCM boys. In contrast, I find myself making money hand over fist and the SEC breathing down my neck for being a presumed criminal. The facts are that I am trading at my operating potential by processing all that is offered by the market. Computers work very rapidly if they are told what to do properly.
Jack, Do you have any audited history of your automated trading system? I'm curious what level of mastery one has to achieve before the SEC starts breathing down their kneck. I'll stop just short of there.
Guys, this thread is about Automated Trading. A few people have asked me to remove a number of off-topic posts by Jack (and his followers) but since he obviously put a lot of time into it I'll let them stand. However, this is a warning going forward, any further off-topic posts will be removed.
Would someone please tell me why (mods, please?) this scam is allowed on this forum? The guy is literally broke and he's allowed to make these absurd performance claims? It has literally nothing to do with HFT.
I'll admit, he is fairly good at googling random things and stringing them together. Problem, is if you can actually process the ramble... it makes no sense. He is clearly delusional... maybe he believes his own story?
If it's not too hard, you and other moderators might consider creating another "Off-Topic" forum, where you could move chunks of threads that went astray off topic, instead of deleating them and lose their posters' efforts forever. Those astray discussions could continue there. This was done in the past, occasionally.