ATC 2010: The Role of Money Management in Automated Trading

Discussion in 'Automated Trading' started by Fat, Aug 10, 2010.

  1. Fat


    On the website of the Automated Trading Championship 2010, we've published the new article: The Role of Money Management in Automated Trading. The role of money management for successful trading can't be overestimated. It is a tool that can convert almost any strategy to a profitable one. While a weak money management may lead a trader to collapse. The participants of the past Automated Trading Championships told us about their money management strategies.

    The article has been published on the website of the Automated Trading Championship 2010, in the News section.

    The sponsors of the Championship are: Interbank FX LLC (IBFX), MIG BANK SA and FXCM (Forex Capital Markets LLC). The media sponsors are the TRADERS' journal and the Dow Jones information agency. The Organizer of the Championship is MetaQuotes Software Corp.
  2. In that article you state:

    1.The lot must depend on the size of the deposit.
    2.The volume of profitable positions should be increased.
    3.It is necessary to place SL and TP after opening a position.
    4.When placing stop orders, keep the ratio of profit/loss not less than 2:

    I say:

    1. A lot is a lot. It depends on nothing. YOu confuse lots and position size.

    2. Do you know how? This is an obvious statement.

    3. No, it is not necessary, some people use trailling, other use other methods.

    4. Wrong. Many very profitable methods use profit/loss < 1 with high win rate. I use two of them in my trading and I have never had a losing month.

    By the way, I noticed all of your winners are Russians. Good grief...
  3. Totantaz


    Russians are better traders ? :D

  4. Fat


    Actually, it is written that we`ve just monitor hot discussions on different forums about MM and summarized them. So its an opinion of most of traders. If you are not agree with them, here is the solution: you may join their discussions, turn the point of view of the majority and we will write about it in the next article. :)

    And... yes, all of our winners are Russians. Its only 1 (ONE) winner among international team of 9 winners (three winners per year)... are you sure that "all of our winners are Russians"? how much is 2 plus 2?:)
  5. Those discussions are indeed hot if people there do not know the difference between lot and position size.:)
  6. you know fat, your championship might actually have some value if you were to structure it based on risk adjusted returns. it's funny that almost all the comments in that article say, 'well, in my real trading i do this, but to win the atc i have to throw caution to the wind and do this'. pretty useless.

    total profits is a poor poor way to determine 'the best' in a trading contest and much much poorer way to determine an automated trading contest. base it on highest sharpe, a profit weighting, and a minimum of 1k trades and you might turn some heads.
  7. Fat


    We got the same discussions on Traders and developers use the same words. Take a look (use Google Translate, its in russian language):

    We`ve just made a simple and transparent rules. We`ve just placed EA-developers to the extreme conditions to find out where the edge of EA-development is.

    And ATC gives:
    1. real information about EA and trading strategies development (for example, now we may determine what level of risk is acceptable, and what level is not; what analytical tool is useful and what is useless and so on). Now everybody got facts to make his own conclusions about EA and TS development. I can say, that ATC is a public research base.
    2. free-of-charge exhibition place for EA-developers. Winners also will get a prize for this exhibition. Those who show that "he can develop EAs" gets a lot of private orders for EA-development.
    3. popularization of MQL5 IDE and whole automated trading. (Thats an official goal of ATC)

    So we appreciate your opinion, but you should apply to ATC as to competition, showing the edge of developments and records. Just admit it, take part in it and get your own benefits.