Frosty's auto-trading bot goes live with REAL money

I like the idea of going live after a big drawdown day.........

I have noticed a type of seasonal correlation to the bot's performance... while looking at historical data and results it appears the bot performs MUCH better at the start of earnings season.... and then starts to fade out towards the end of earning season.......

Does anyone have any ideas why this may be the case?
 
Quote from frostengine:

I like the idea of going live after a big drawdown day.........

I have noticed a type of seasonal correlation to the bot's performance... while looking at historical data and results it appears the bot performs MUCH better at the start of earnings season.... and then starts to fade out towards the end of earning season.......

Does anyone have any ideas why this may be the case?
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The thing is, unless you used a hedge you could only do that once - the next time you will be CAUGHT in the drawdown. I would think that the bot performs well after earnings because the stocks have more direction and movement. After that as time passes more confusion = more chop. That's one theory anyway.
 
Quote from jonnyman:

The thing is, unless you used a hedge you could only do that once - the next time you will be CAUGHT in the drawdown. ....
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that's why I suggest he put on a hedge.
 
Quote from frostengine:

I like the idea of going live after a big drawdown day.........

I have noticed a type of seasonal correlation to the bot's performance... while looking at historical data and results it appears the bot performs MUCH better at the start of earnings season.... and then starts to fade out towards the end of earning season.......

Does anyone have any ideas why this may be the case?
More...

Your system is probably trend based and the market trends more during earnings season when the market is already trending to some degree.

Turn your system off during fed days and also the days the fed minutes comes out. Also turn off on big news days.


John
 
Quote from nkhoi:

how about, taking it live after a big draw down, this seem to work for plenty of system. Of course then you have to figure out how to handle the big draw down, may be at certain amount you just put on a hedge .Thus you can have big draw down number without suffering big draw down consequence.:)
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Most of the times, when you first go live with a strategy, there may be a continuation of the current profitability of the system, at least temporarily. Like for 2 months, the bot continues to work with almost the same reward and then gradually stop to produce gains and enter in a DD.

It would be good to use this technique but only after the first initial run-up.
 
The past 3 weeks have been the best 3 weeks it has had in about the past year.... It has not been on my real money account unfortunately though.. but it has been doing incredibly well...

Will probably wait few more months and go live with it again... still working on trying to put in more protections for now
 
Quote from walterjennings:

Suprising that stop strats would reduce the profitability drastically. maybe the problem is with how you define profitability. Rather than looking at straight amount of money earned each day, it might be a better idea to gauge it as profit/(capital used in each position * sum of time in positions). that might give you a better gauge of how hard each dollar of capital is working for you. and is more realistic if you want to expand into multiple contracts / securities.
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nice formula -

profit/(capital used in each position * sum of time in positions)

tks mb
 
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