Yep, the development of totally new skillsets. Not that I'm naysaying you Kohanz, I think you've made some very good observations, but to develop a reliable trading system that can effectively mimic the abilities of a skilled trader you're going to have to develop it, I haven't seen anything in the retail market that's quite ready for prime-time. Regards, JJ
I also agree with Kohanz - how about another huge advantage: the ability to trade 24/7? Brownsfan: why the need to isolate automated development from manual trading? I don't believe they are mutually exclusive. The way my group developed our system was by trading during the day and then developing at night and weekends. Sure it takes extra time and effort but what worthwhile monetary pursuit doesn't?
Maybe Frost could join your group or you could take'me under your wing. This way he would do what people have been telling him to do, trade then develop.
very few people other than you have been telling him to trade by hand first. iv never traded by hand, i never will. and so far its been working out quite well for me. i get the edge of approaching trading from a completely different angle than every other hand trader.
That's because the other experienced traders who were telling him to learn the basic fundamentals of trading before trying to design and deploy an automated trading bot with live cash have long since either given up on'em or are just stopping by every now or then to see how far a hole Frost has dug himself into. In terms of not needing to learn discretionary trading and still being able to design a trading bot I applaud you, your intuitive analytical skills are up there with the best of'em ... but with Frost, it just ain't work'in, and we aren't seeing an improvement, so he needs to go back to school (uh, that's not a bad thing, that's just being real) - or hey, continue to lose money, either way, it's allright with me. BTW, the Currency Markets are 27/7, the Bonds and Energies trade at a different time than the financials. So provided your edge is transferable to any security that trades (due to pattern matching or some/such thing), it looks like you're going to have your work cut out for you. See it does help to know something about the markets. Best Regards, JJ
ah. I was under the impression forex is closed over the weekend. quoting the description of idealpro on IB "Market is inactive from close of Friday until opening on Sunday." http://www.interactivebrokers.com/e...=ibfxpro&showcategories=FX&ib_entity=llc#show they also usually close for a short period of time around 4:00. I hav'nt come across any providers that offer true 24/7 trading. Even if one did, the volume would be so awful on weekends I doubt it would be worth trading.
Shrug, it appears that all markets have to close for trading at some time ... nevertheless, the currency markets are thought of as having 24/7 trading capability in the industry. It's a shame that none of this back-and-forth is helping Frost with his trading dilemmas (the main one being how to trade profitability through an automated system, much less the items of risk management and position sizing) ... but I am learning a lot. If traders like you and Frost can design automated trading systems, all I have to do is learn how to code (if that much), and I'll be well on my way. Best Regards, JJ
Actually, when you first own a backtesting software, you realize that most of the ideas you had about how to trade were false . That was my case at least, but I've just been discretionnary for 2 months. Here are some examples of commonly used principles that are totally false : - You have to use tight stops. - You always have to use stops. - It's better to trade intraday to avoid overnights( big risk.. ) - You'd better use a profit target .... So, IMHO, you can directly begin trading with backtests and automation, with perhaps 1 or 2 basic indic, chartism, candlestick... books under the belt.