It's not because you couldn't do it that nobody can . Why are you even arguing about something you clearly have no knowledge of. Back in Januari you were bragging about the results of your algo's and you were going to show the equity curve (which you still haven't done). Now all of sudden it's impossible for everyone just because you couldn't do it ...?
No, you have misunderstood what type of algo trading I am doing. My average holding period is a few weeks. I probably trade fewer times than you. I probably pay less in fees than you (about 0.5% of account value in commissions annually). Everyone can see in (almost) real time what I am doing: I publish my daily trading here every night: https://github.com/robcarver17/reports/blob/master/Trade_report You can see that yesterday I did 4 trades, a bit below average, but it’s rarely more than 10. So to summarise, you guys are no longer saying that quant and algo trading is nonsense and there is nobody making money out of it. I’m glad we agree on that. Instead you’re saying: you lost money using algos, therefore as far as you are concerned all algos are bad you’re only interested in having fun and gambling whilst trading, and algo trading just isn’t fun algo trading is too much like hard work Fine – I guess we all trade for different reasons. I trade to make money, since trading profits form a significant part of my income (I haven’t had a full time job for over 10 years). And I can make money far more consistently with algos than I can without. And I believe this is true of most people. And we have different ideas about working hard. Personally having to sit in front of a screen to trade strikes me personally as way too much like hard work, and also very dull compared to the more intellectual task of researching and programming. Once a system is set up, it’s a lot less work than manual trading – perhaps a few minutes per day. But horses for courses. We’re not going to disagree on this. It sounds like algo trading isn’t an option for you. But – to repeat – that doesn’t mean an algo trading is automatically a scam. You also say two things that are wrong: a non algo trader can make a guaranteed monthly profit and therefore needs less capital algos have bigger drawdowns, and therefore need more capital To make money every month consistently over long periods of time is unrealistic. Only a tiny fraction of professional traders manage it (outside of the high frequency trading arena, and outliers like Rentech). If you have done that, it’s likely you have just been lucky. As you say, you’re just a gambler. There is no reason why – in expectation – the profitability and drawdowns should be bigger for an algo system. Quite the opposite. The median performance for an automated trading strategy is significantly higher than the median performance of a discretionary retail trader using technica analysis (which is negative). This also means you need less capital to achieve a given level of profitbaility. More capital is better because it provides diversification, which is good no matter what sort of trader you are. But a less diversified algo trader is almost certainly better than a less diversified random point and clicker. Given the figures you have used, you are taking way too much risk with your single contract. Fine if you are trading for fun: .. not fun if you aren’t. GAT
"I have no idea what quantitative approach means." Let me give an example. Over many years a trader will learn many patterns which work in certain circumstances or certain unpredictable times. These could be based on prices (eg round numbers) or S/R Levels, could be to do with volume, speed of moves, days of the week month or year, maybe moving averages, could be to do with correlations, topping or bottoming patterns, breakout patterns, etc..... So trader accumulates lots of ideas and knowledge and (s)he trades several different instruments, maybe has a watchlist of a couple of hundred stocks. One can code much of their ideas into an amazing brain/algo. The code recognizes instantly across a wide range of trading instuments/watchlist when such events occur and alerts you. Just think, you store all your edges into code. No need to manually try and recall. Even when you are tired or distracted, the algo can keep track of several hundred instuments and faithfully reminds you when events occur instantly. Some algos go further and fully or semi automate the trades. For SML, it appears he is limited to trading ES & NQ, but others can be trading several positions simultaneously, the more money which is on the table working over more instruments, the greater the potential profits (and losses). If you have a profitable system then profits will take care of losses. It's only a working algo which can do this efficiently.
Good Morning p0box4, I have never seen an algo (including the algo I built) that trade better than me clicking everyday. I have never seen an Quant algo that trade better than me clicking. And I doubt I never will. Therefore, "I" do not believe in algo and quant systems, I rather click. Much easier and instant reward.
I can't do brain surgery, I have never seen anyone who can do brain surgery, therefore I do not believe in brain surgery. See how flawed your logic is? Just because YOU can't do it doesn't mean it's not possible. Then why don't you show us your total net PnL for 2024, or even better, for let's say the past 2-3 years, instead of picking whatever day's or weeks you are showing? What are you hiding? Then you clearly haven't done enough research.
Good Morning Laissez Faire, I will accept sounding dumb, as long as my trading account below does not look dumb and red all over the place. So yes, I am dumb. And you know it @Laissez Faire you already KNOW once I get to 100 ES contracts, yall going to ban me from ET website, because I am going the bragging my black ass off. You already know that is coming. My track record shows I am pretty smart, whatever smart means. 18 minutes until time to click click click click Here is about $11,000 for the last 30 days so far. Account 1 Account 2 Account 3 yesterday
Hello p0box4, I do not care about any of that stuff. Just clicking buddy. Just clicking and money in the account for LOW risk capital invested. You mad because I said algo and quant is scam and lie to me. Oh well, that is my opinion and I am sticking to it. I think manual clicking is far better. I stated that opinion earlier in the thread.
Good Morning themickey, Thanks for the explanation. I know what it means now. You guys and gals keep talking about all this quant and algos stuff, but yall not talking about the capital required to do this. Noone has +$200K to do it right. My opinion is this: 1. Manual trading the ES and NQ markets makes more money than running an algo system or quant trading system in the long run and short term. 2. Guessing trading in the ES and NQ markets makes more money than running an algo system or quant trading system in the long run and short term. 3. Gambling trading in the ES and NQ markets makes more money than running an algo system or quant trading system in the long run and short term. 4. Systematic and quant trading takes too long to get right and the pain of drawdown. 5. From my understanding right now, for Systematic and quant trading to work need a lot of them running at one time. About +$200,000 of capital. ES and NQ market manual trading cost is about $2000, and instant reward everyday.