Dilemma

Discussion in 'Strategy Development' started by fordewind, Feb 19, 2018.

  1. Hey, guys!

    Need an opinion from experience traders who do both, automated and manual trading or migrated from manual to automated.

    Have a system that works quite well manually,but since recently, as some RSI problem(don`t confuse with the RSI indicator, please.lol) started to develop i can no longer sit and monitor for hours as before.

    A strategy is a momentum type strategy which can be handled manually, but when i try to implement it to the automation i encounter a huge slippage issue.Nothing seeems to work to handle the issue and it seems unsolvable at this point.My guess that the slippage issue is the only issue when it comes to the automation.So, if anyone have any advice on that, i`ll be greatly appreciated.Please, respond if you have/had the similar issues before and have ideas to share.Additional questions will be answered.

    Thanks!
     
    murray t turtle likes this.
  2. Look at how signal is calculated.Compare signal value calculated in real time and for example your automated signal for execution is calling for value on the next bar-so there is a delay.
    Instead of last price traded try to implement value of bid and ask in the calculation of algorithm

    Another way to diagnose is watch in real time and send part of the order manually and leave part to automated execution if it in any way software issue.

    Also you might want combine your current signal with something that gives signal earlier add those values as a new trigger.You need to play around

    Last,but not the least if it was me and i could not watch screen for hours i would build sound alarm or something to alert me to when value is near to when trade could be still executed manually.I mean you are in the business of trading and this is your income.

    I am in the process of coding algorithm and it's nearly a year and we didn't change anything in the strategy and coding it correctly is not an easy task.
     
    fordewind likes this.
  3. Thanks for your reply.Tried all the above, except for this part:

    "Another way to diagnose is watch in real time and send part of the order manually and leave part to automated execution if it in any way software issue."

    and i`m not sure i understand what you mean here.Anyway, i could say been working for more than 2 years,i worked with the execution framework mostly, tried numerous things(flag the early signals, different orders combo, bid/ask/last, craps, dominos..lol,you name it), the only issue is the execution slippage.All is not worth a while until you find a way to handle the slippage and the only way to me is not having stops at all.But i guess it`s not a proper way to be, sooner than later you`ll catch a dangling position that blows you away.

    Having alerts and dumping on automation winning hearts and minds so far.I knew i would ask for grail actually, and wasnt sure to start a thread on this, but was kind of sending a message to the universe and get the answer.

    Coding a strategy correctly, as you say, is not the issue.The only issue you`ll encounter would be a slippage and nothing but slippage.
     
  4. I had the same issue with RSI in my hand building up from a scalping style involving upwards to 200 trades a day. Fantastically profitable with excellent risk management however murder on the mouse hand. The tendon sheath on a finger was savagely inflamed.

    I went to a hand specialist and a single injection of diprofos as an intra-muscular into the butt plus three days rest fixed it. Ibuprofin/Mobic etc. tablets were soothing however useless where this other stuff just was remarkable.

    RSI varies in cause but the right doc can turn around a seemingly hopeless situation, that is what I found after six months of worry.

    I also run bots. One needs to consider the market, limit orders are essential for me in illiquid markets or times. Generally speaking one needs to be predictive on a signal, not reactive I found and also like an experienced human entry, initially monitor if it is going bad immediately. A signal can whipsaw before it establishes the correct direction. A human filters this in his mind effortlessly with practice, the computer does not. AI may be appropriate however non-experts may struggle.

    Generally speaking you need to be on very high timeframes for indicator signal system to work. Try it on a 1440 minute or four hour adjusting for larger targets, slippage won't matter and see if limit orders make sense.
     
    Last edited: Feb 19, 2018
    fordewind likes this.
  5. That`s a good one,Starti.Thanks a bunch!
     
  6. The issue with higher timeframes though,is that you still have to monitor and it brings you back to the chair again.
     
    murray t turtle likes this.
  7. CORRECTION!!! looking at the prescription the drug is called Diprofos (7mg ampule)

    I was talking about it last week with an American physio who corrected me to "diclofenac" and they may be the same thing (Spanish/English drug names vary) but just for certainty. I have amended the post above.

    I don't have any allergies or relevant health issues. I needed a single additional injection four months later as I abused hand during a phase of market volatility.
     
    Last edited: Feb 19, 2018
  8. You always have to monitor anyway bedding in a bot. It took me a year to tweak my first one into robustness. I am highly IT technical and could afford a brilliant developer (AI specialist).

    Though I went a different path, Kevin who is a vendor/sponsor and well respected guy I believe is a good first stop. You will see his banner ads on ET.

    https://kjtradingsystems.com/index.html
     
  9. Thanks,but the stuff has many side effects i tried in the past,but being relatively young i rely on natural improvement.Just need to get up from the chair for a while.But if things get worse i`ll defenitely try it.
     
  10. For what it is worth, I had none other that feeling a little warm for an hour. It is always around 24C here anyway but of course you are not me. Good luck with it.
     
    #10     Feb 19, 2018