Fully Automated - LIVE Trading - $50k per month

Discussion in 'Journals' started by frostengine, Mar 13, 2022.

  1. Millionaire

    Millionaire

    You were up several thousand but ended up -6K. So you lost about 10K on your Long trades, losses which seem to be have closed near the market close.

    eg. You were down 200 NQ points in MNQ positions i think, but not stopped out?

    Did these Long trades have any sort of worst case stop loss in place?
     
    #51     Mar 14, 2022
  2. No, none of the strategies use any stop losses. A 10k swing is only 1.25% move in the account.
     
    #52     Mar 15, 2022

  3. Maybe you're already aware of this, judging by your comments it seems you are, but I would just be extremely careful about sizing up. It looks like one of your biggest edges is your account size not your actual strategies, which is allowing you to trade smaller sizing relative to your account size, but still generate good profits (relative to baseline cost of living and etc).

    For example smallest size on futures you can trade is a micro. So, someone with a 10k account even if they allowed 1.25% drawdown on some trades, would only give them 62.50 points of stop. Not even 1/3rd of the stop you took (and still didn't exit).

    Not trying to say you're not smart enough to figure this out on your own, but there's been some people with large account sizes come through here lately and blow through it quickly making obvious errors. You have 20 years of experience, so less likely to happen. Still just thought I'd throw this out there.
     
    Last edited: Mar 15, 2022
    #53     Mar 15, 2022
  4. Millionaire

    Millionaire

    When doing directional trading they say it is important to "Ride winners and cut losers short".

    All my research suggests this rule is correct. It is very hard to maintain a trading edge over the long term edge without doing this.

    But your systems might be the exception, good luck!
     
    #54     Mar 15, 2022
    nooby_mcnoob likes this.
  5. In all the systems I have designed, I have never seen an arbitrary "stop loss" improve the results I care about. All of my systems are designed to have a "reason" on why it gets out. This "reason" may be a black box as far as my understanding of it, but the models were trained to create that reason and the data supports the reason. This has shown to be far superior for my style of automated trading.

    This goes back to an edge that has been pointed out on this thread a few times, trading with a size that allows me to not get worried or emotional over the outcome frees me up to not have to rely on arbitrary stops. I can trust the system and the billions of iterations that went into creating it.
     
    #55     Mar 15, 2022
    beginner66 likes this.
  6. Setup a live feed to capture your desktop on YouTube. Software is free.

    https://obsproject.com/
     
    #56     Mar 15, 2022
  7. Aisone

    Aisone

    What methods did you use to research this philosophy, as it lacks context and criteria?
     
    #57     Mar 15, 2022
  8. Aisone

    Aisone

    Overall I find this all very impressive, and I'd like nothing more in my trading approach than to be able to apply ML to it.

    A couple questions. How much knowledge of coding is required when you submit your inputs into ML in order to run the iterations needed to develop a system, and is there a particular ML engine you recommend for this type development? Also, is your engine able to analyze criteria that applies to many time frames/periodicities simultaneously and thus yield an effective strategy that based on the collective analysis?

    I noticed you close out positions at the end of regular hours trading. Is that limitation a product of the ML or the parameters you've given it so you eliminate overnight risk? I was wondering if that is costly to do, as some anticipated price improvements may simply need more time, or if it is accounted for in the expected results of the trading system.
     
    Last edited: Mar 15, 2022
    #58     Mar 15, 2022
  9. Interesting.. however not sure I see the benefit (to me) in broadcasting a live feed of all my trades via youtube? What reasons would I have for doing so?
     
    #59     Mar 15, 2022
    Laissez Faire likes this.
  10. My platform is all "self developed" - not using any off the shelf ML software. Therefore, to do what I am doing would require a lot of coding experience. However, I think there are decent tools out there that can be used with less experience.

    Its less about the "engine" training the strategies and is more about the data you feed it. Yes, my system is able to analyze multiple time frames simultaneously.

    As far as closing trades out at end of day. I am running 2 systems where I am posting Twitter trades. My futures swing trade system and my futures daytrading system. The daytrading system is designed to be flat overnight, so that is what your seeing exit positions before close.
     
    #60     Mar 15, 2022