Automation allows time for research. Not having to watch the charts leaves 16 hrs/day (mixed in of course with time spent with the wife and kids, and eating and exercising, etc... what more could a geek want?) for research, development and stepwise refinement... over N weeks/months/years, that's a huge productivity advantage...
Intermarket analysis will help, also developing a filter to manage noise. I would refer you to the ACD thread for this.
ok thanks, i now understand this about likelyhood DD exceeds historical as sample increases. If you wait long enough, also the very unlikely will happen. On the positive side at the same time the law of averages start to apply. But the DD for sure is dangerous, especially when sizing up. Also knowing it can exceed historical without disproving the system can make it more dangerous because you can let it go further than necessary. So lots of things to consider again and I guess understanding your system in and out is most imperative. If you have many systems it gets harder to understand them and how they interact in extreme situations. Lots of time to do research, but lazyness hits in so hard to motivate myself until a problem is spotted. Well I guess that's a personal problem.
btw. if someone wants to exchange ideas privately i am interested if it could be mutually beneficial. Im mostly focusing on mean reversion strategies.
I cannot think of a worse strategy to employ the past few years. Why make things so hard on yourself... enjoy pain ?
Not everyone is trading the same instruments as you. This thread is obviously not for a vendor like you who is relying on selling services instead of making profits from trading. I will ignore you from now on.