Are Automated Trading Systems Making Money

Making an automate system from how you are day trading is actually difficult, least for me. As much as I would like to say I still have great memory.....I don't as much any more (forget asking me a tough question in the evening), so going from manual to programming it takes months if you use much charting and few indicators. What you think would be a walk in the park......fifteen codes later finally getting one of the "when to avoid signal" right, then programming risk management, patterns you just take for granted, you have to think in rigid lines of code, yes you can program wiggle room, so what use to be once an easy system, now ten months later still at it. As with the other automation, it is ongoing process till you have it completed then comes back testing, optimizing in small chunks then forward paper trading, many would most likely speed up process, take short cuts, but I am pokey in my steps and have a partner doing the coding. Thankfully, he knows my style better than I do, LOL.

Then you running it and got all the kinks out, and doing well, you brainstorm to come up with some off the wall idea, and process starts all over again. I think it is best to have variety in concepts, instruments, durations but risk should stay the same unless it gets smaller.

Not much makes me more happy than cutting one plus percents on drawdown, I mean that is all that matters to me any more. Evolution of a trader from making most in profits to trying reduce the drawdown every year which is the most important. So automation does track drawdowns, and swing equity increases knowing when it should start reducing size for other than intraday trading.

Anyone know if Buffett does automation?
 
I think automation could be quite difficult to code successfully due to the fact there is a lot of bluffing which goes on with trading, ie, dummy moves.
Very hard to code an algo when this is continually going on.
I'm beginning to see that often when I'm in a long position, there are large numbers of trades attempting to drive down price, often just prior to a breakout.
Now human nature and experience tells me one would normally be setting up and positioning for a long breakout just under support, but the fact of the matter is in reality often price is smashed down like an avocado spread, there is a greater willingness to pound it rather than support it.
This by the way on positions which have already been hammerd down over a long period of time, like even close to bottoms.
 
sle said:
Unless that "everyone" is trying to sell you something, what is the incentive for them to reveal their track records or any other information? ...
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I believe the truely successful are security aware and are keeping their head down. No?
 
themickey said:
I think automation could be quite difficult to code successfully due to the fact there is a lot of bluffing which goes on with trading, ie, dummy moves. Very hard to code an algo when this is continually going on.
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Single algo can be automated within a multi-day approach. Not a trivial task as you still need a grasp on ranges and assessing probabilities within them.

Intraday involves more complex analysis within a structured time series. Variations of single code can be used to reflect the points within the time series. You need tools that allow multi-variate analysis and enable you to select the optimal points.
 
[QUOTE="themickey, post: 4510718, member: 161656"]I think automation could be quite difficult to code successfully due to the fact there is a lot of bluffing which goes on with trading, ie, dummy moves.
Very hard to code an algo when this is continually going on.
I'm beginning to see that often when I'm in a long position, there are large numbers of trades attempting to drive down price, often just prior to a breakout.
Now human nature and experience tells me one would normally be setting up and positioning for a long breakout just under support, but the fact of the matter is in reality often price is smashed down like an avocado spread, there is a greater willingness to pound it rather than support it.
This by the way on positions which have already been hammerd down over a long period of time, like even close to bottoms.[/QUOTE]

Not true at all for top firms.

Many, many firms have made fortunes with automated algos. Renaissance is up tens of billions.

But for amateurs, mom and pop, and those late to the party, it is not the easiest task.
 
777 said:
Not true at all for top firms.
Many, many firms have made fortunes with automated algos. Renaissance is up tens of billions.
But for amateurs, mom and pop, and those late to the party, it is not the easiest task.
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Tru dat, very hard for a home built go cart to compete against a late model Ferrari.
And there is another point often overlooked, Mr. & Mrs backyarder (you and me) have such a small budget we for the most part buy budget data, we run budget software and budget computers while living and working in a budget room with budget staff, that is me, myself and I.
Mate, no wonder it's a battle with all this crappy buggy shit we attempt to trade with.
Then throw in IB and the dysfunction is complete.
 
sle said:
The answer is yes, there are plenty of systematic traders that have been making money, recently and long term. I am one of them. Your mileage will vary, of course :)
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Does your program day trade or swing trade?
 
ironchef said:
Does your program day trade or swing trade?
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My infrastructure is not built to compete on latency, so I don't do anything that qualifies as HFT. Otherwise, the type of stuff I do is all over - my mandate is very broad. Some is intraday, most, however, is what's called "medium-term".
 
themickey said:
Tru dat, very hard for a home built go cart to compete against a late model Ferrari.
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To continue you paradigm, your best bet would be to find a place where a go-cart would have an advantage. I.e. go somewhere where you would bot be competing with the likes of myself.
 
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