If I may, I'll say it's a very interesting time to start an algorithmic trading strategy considering current market conditions. That's not knowing anything about your actual strategy, but I know from my own trading that these conditions are different than your average market conditions. And I imagine that the next 2 or 3 weeks will be very volatile.
Well, a much, much better day today. Perfect range conditions for 5 trades, 5 wins. Running PL: -$217.77
Hello Volpri, Yes, it did, on the 4 where 2 micros were traded. I don't see an issue with that, when a I have a stop in place across the basket of open trades. Sure, if we were just continually averaging down then it's a big problem, but managed in this way, the risk is managed across the basket and loss accepted if it breaches the stop level.
Lol just kidding around. I average down on between 1/3 and 1/2 of my trades in any one session. Usually.
Hey Traders, I took a win then a couple of losses on the algo early on today, my confidence is not as high as I set out with. Feeling frustrated, I shut the algo down, and discretionary traded the 1m chart using a set of indicators I developed out of some standard MT5 indicators, resulting in a pretty good day; however I did take a little too much risk on a couple of these positions. Running PL: -$120.25
Hi Dave, Great post. Wondering why you're doing 5m mean reversion? Lots of CTAs (hedge funds that trade futures) switch between momentum and mean reversion by filtering and comparing vs. volatility and the premium between the cash index and the future contract.
MarkBrown, You are smart and experienced trader. You are 100% correct. I personally lost $2300 because I did not know this with NinjaTrader 7. I built an algo in NT on the 5 minute chart. Amazing results followed. I deposit the money in broker and let the algo run. Within about 3 weeks lost $2300. After some research, the back programming gives a win if the enter price and exit and stop loss is within the same bar. Lesson Learned : Always forward test and back test and check about 40 trades in real time and then back test those 40 test against the back tester Program. My path forward: Manual trade until the day I die. I am not smart enough to program a profitable algo.