Manual adjustments of your Auto System

Discussion in 'Automated Trading' started by RedRat, Apr 17, 2008.

  1. RedRat

    RedRat

    Hi,

    I have a question for you guys who use completely Auto Trading Systems (ATS). Do you manually switch them on/off depending on current market situation? Do you adjust lots during market volatile periods? All my questions are about day trading ATS.


    Currently I switch off my system during
    -Fed reserve meetings
    -Last business day of the month

    Other possible unstable days are:
    -One day before FED meeting.
    -Otions or futures expiration day.
    -Day when market greatly moved up/down because of 8:30 news event.
    -Day when market "ignores fundamentals" so there were bad news at 8:30 or 10:00 but market is climbing higher.
    -Short day before the national holiday.

    I did not have time to investigate these cases.

    Could you add more cases when market is different from its historical behaviour?


    Finally there are major phases of the market: Trend, Swing and Choppy. Suppose that I know that my system performes best during trendy market. Is there any way to differ current phase of the market and shifting from one phase to another?

    Thank you in advance,
    RR
     
  2. bakrob99

    bakrob99

    Why woudn't you rely on your backtesting to answer these questions?
     
  3. RedRat

    RedRat


    Well I need more cases when market behaviour is different because of extra events - before I start testings.

    What about market phases? Is there any way to distinguish current phase and switching from one to another?
     
  4. Yeah... so test those too.
     
  5. RedRat

    RedRat


    Hi TSGannGalt,

    I will ask you personally. Could you provide information on how to differ market phases? Can it be done in algorithmic way?

    Thank you in advance,
    RR