Quote from trhudson:
He laughed and said "You know, what you are doing isn't all that complicated."
The sad part is - I found out later that he attempted to do what I was doing, but was unsuccessful. The problem was, he had NO CLUE as to what I was doing. I am certain he was very confused when there was a long position in one stock and a short in another. (And this was not a pair trading strategy).
WHY was he unsuccessful?
He most likely keyed his entry off of the SPY - BAD IDEA.
He did not have a 100% automated system. There is no way a manual trader can enter an order as fast as an automated system. Not to mention, the program has no emotion.
He did not have the information that he needed. - In terms of Research and a data-mining application to find out what would / would not work.
He did not understand that what I was doing was all calculated and automated. I tried to explain this to him many times, but he would not listen. I attempted to tell him that the program took less than 3 minutes to setup, but it would do everything on it's own and I would not enter a single trade manually.
Just a few months ago, I was contacted by someone who has been in the industry for a very long time and the question was - If you had a profitable system, whey did you not size up?
I proceeded to explain that my goal was to become more like Toby Crabel and CCM in my approach to risk management. My goal was to take smaller trades, risking less capital on each while diversifying my strategies as well as my risk. This approach simply cannot be achieved manually, there is just too much going and too many calculations to make.