Automated Long-Term Trend Following System With Positive Expectancy

Discussion in 'Risk Management' started by -EntropyTrader, Jul 24, 2003.

  1. How does one create such a gorgeous beast?
  2. Just signed up for IB (account not funded yet). I trade ETFs for now.
    Is it possible to create such a beast on IB?
    Is back testing possible on IB? How?
    Anyone been there, done that?
    Is it better to stay systematically discretional?
  3. maxpi


    I don't think IB is going to help you much with system development. There are automation interfaces to software packages like Tradestation, Wealth Lab, etc., that will allow you to automate trading with IB. See Tradebolt and DynaOrder.

  4. I'll check that out...thanks.
  5. EGOT


    I believe such systems exist, but are readily shared.

    I believe the answer to "creating one" may well be a great deal of trial and error and probably using indicator setting that are relatively atypical.
  6. I guess automated systems are better suited for very active traders. I was just wondering if I can codify my strategy, back test it and let it trade automatically. Doesn’t seem like it would be worth the effort considering that I have a pretty simple trend following system backed up with solid risk-management rules. I find myself switching progressively longer-time frames as I realize the big money is in big trends. I plan on getting a job so that I can have two sources of income. I also plan on taking on no more than 4-8 trades a year so I can ride the big trends.
  7. ptt


    you'll need lots of capital to do this, because of the drawdown, and so you can diversify across different markets

    there are a lots of commericially available systems, and brokers who trade these systems

    if you need a job, you probably do not have enough capital, similar to my situation

    check out

    these guys track a bunch of commerical systems that do what you want and you can get a free report

    good luck
  8. I did begin undercapitalized. After I switched swing trading trends, I just have too much free time. So my plan is to trade long-term trends while working for a few years. When I have over 250k and several years of rock-solid performance I'll return to full-time trading. I'll still trade long-term trends, I'll just trade more markets. For now, I guess I'll can still go semi-automated by getting stopped in and out of trades.
  9. maxpi


    I'm going the automation route with oversight by myself on all forms of trading I engage in. I miss long term trades because I am working on the development of short term systems, miss short term trades because of conflicts in work schedule, etc. Finally I decided that the man for the job is a computer.