creating a system that feels good

Discussion in 'Strategy Building' started by trade4succes, Sep 19, 2005.

  1. i have payed my dues, i am ready to start trading the way *i* feel like.

    my current project is to develop a strategy with it's only focus: how does trading it makes me feel as comfortable as possible.

    1) it has to be automated for the most boring tasks: executing, entering/cancelling orders etc.

    2) i want to hear the cash register ring frequently intraday, not many losers.

    3) i like to input some infrequent discretionary judgement on patterns.

    4) one or two instruments, i can't concentrate when too many things are going on.

    5) simple system

    6) it should work on most days, doesn't need specific situations.

    7) i can't think of a 7 but i am devout

    anyone tried developing with this focus before? any tips :) i know i can do it, i just have to get working..
  2. robbo


    Well I would look at point 2 again because Trading isnt about being Right its about making money and taking losses is a big part of trading.
  3. it's not what is about trading or not, it's what i feel like or not
  4. so i am thinking about some kind of automated marketmaking system, but with discretionary bullish or bearish judgement input.

    it needs to be a heavily traded instrument of course to get many trades going as that smoothes the equity curve and that is what i like. many small high probability trades.
  5. first you need to know how to trade profitablly by hand before you can make a system to trade profitably, don't you think :D

    If you know how to trade profitably by hand , then it should be easy for you to develop the system as long as its not scalping.
  6. I can trade profitably by hand. i said i paid my dues remember? It's time now to do something i really enjoy, isn't that the secret to success anyway?

    It needs to be a scalping system, cuz i want high frequency, high probability.

    I am thinking of market making, with limited averaging down to compensate for the fact that as a robot, the system won't be precise enough to bid offer at exactly right prices, so i need to smooth the range a bit by averaging down.

    Additionally i want to add discretionary bullish/bearish input.

    Still figuring out how to connect the pieces of the puzzle.
  7. trade4success,

    you are absolutly correct IMHO..


    The solution to the puzzle will present itself in time...don't rush it. Nobody will help you here, but you may get hints from posters that do not even know they are giving them!

    Just keep an open mind and focus on your 7 errrr 6 points

    Michael B.

    P.S. When you find you system/plan don't let anybody tell you you stole it from them, as you must make it work! Add your tweaks and voila...
  8. many thanks for the encouragement!

    wish you all the best,
  9. Congratulations and good for you! attaboy
  10. maxpi


    It's doable. I have two systems that together comprise comfort., One requires a lot of personal attention even though the TA portion of the entry is fully automated, the other one runs all week unattended except that I have to screen the issues for each week on the weekend. Both are designed for comfort with reduced risk of an extended drawdown and they are complimentary in the comfort area with the one making steady gains without account volatiltiy and the other one suffering from drawdowns occasionally. With each of them trading half the account, overall I have comfort regarding the amount of attention I have to pay to the trading and the worries about account volatility.

    I saw an interview with a trader on television once, the guy had twitches and was jumpy as could be without dying right on the spot. I will never go there, it's not worth it to me. I worked with a couple of guys that traded on the side and when they got upside down badly they could not do their work, it was awful to watch, one guy completely self destructed in the 1987 crash, he was wandering the halls holding on to the walls to get around for weeks, it was pathetic. I keep comfort in mind with all the sytem development that I do after seeing that.
    #10     Sep 19, 2005