Trading a Basket based upon your SIM Account's Open P/L. I just wanted to see if there is anybody doing this. I have not discovered this method that I use published out there. Jonathon at Rithmic is going to add a Chartable version of tracking open P/L within the Rithmic RTraderPro platform. I believe I have discovered a new approach to trading without the use of traditional charts but instead from your brokers trader dashboard. But I could be wrong and maybe its not new. Imagine if you could establish the opening of several instruments at the same time in you sim account. You must pick the correct direction if you are to expect the basket to turn to profitability to allow your decision to enter your live platform. Your method of picking the correct direction of each individual instrument would be important as you want your equity curve to reflect a unified direction. You could have long and shorts in the basket. If you choose enough instruments perhaps not all of them have to be the correct direction. You could use your scanner with TA criteria....Fundamentals....News...etc. All the various methods of trading to get a direction. The important thing here is to note that you are making actual entries on your SIM account creating an open P/L. Then you have your live account awaiting your entry into that basket based on what the current P/L is reporting in the SIM. You could use a mean reversion...or just enter when the pace and the profitability appear. YOU COULD TRADE YOUR SIM EQUITY CURVE! You could enter the instruments for the formation of your basket with DOM or trade tickets. But it would be important to enter them very quickly at the same time so that they trade together in Synch from the beginning. Rithmic has several ways to enter a trade. I think you could enter them from your quote screen. The possibilites for baskets are endless. You could enter at MOO and exit at MOC or you could manually just watch them trade and exit intraday. You can enter at time windows of your choosing. You could have two sim baskets trading and spread trade them...it goes on an on and on... Please PM me with your project Ideas. ElectricSavant
"The important thing here is to note that you are making actual entries on your SIM account creating an open P/L. Then you have your live account awaiting your entry into that basket based on what the current P/L is reporting in the SIM. You could use a mean reversion...or just enter when the pace and the profitability appear. YOU COULD TRADE YOUR SIM EQUITY CURVE! " Yeah, this never works well. My sim accounts are doing so super well. Because I never truly anticipate the liquidation hits that would occur. The sim reset button is the bane of traders trying to get ahead. Try trading in RL sometime, and you'll know why.
I have contemplated turning algos on when in a std deviation drawdown during testing , i almost think turning it of in a DD is counterintuitive unless you are convinced its broken , then in that case why would you ever turn it on again . I think these concepts are something to avoid tbh . Get a robust 'machine' and the curve takes care of itself . Perfection is a futile pursuit and drilling down into a reflection of a reflection creates doubt not clarity .
How many instruments would you trade in this basket? And how often would you be "changing" the basket...hourly? End of day?
Unfortunately, I learned this the hard way. Once you get the parameters in line, you only get what the market and your resources offer, no matter how much you try to polish the machine.
With this logic you might as well do crazy shit and have your SIM P/L start crashing and then you fade it in your live account. Probably a lot more repeatable.