Has anyone found a profitable auto system ?

SimpleMeLike said:
Thank you d08,

I understand now. Very interesting.

Would you agree the following are example correlated instruments somewhat:

ES , NQ, YM, TF / RTY


Noncorrelated instruments example :

NQ - CL
ES - GC
ES - ZN
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This is a good resource for a very basic look at correlation. It's for ETFs but you can find corresponding ones for futures.
 
d08 said:
You don't want to trade 2 systems that do the same thing on a correlated instrument. Say if system1 tells you to go long SPY and system2 tells you to go long DIA, you won't achieve any benefit to the equity curve because they are correlated instruments, if the market falls your drawdown will be effectively doubled or multiplied. But if system1 goes long SPY, system2 goes long UNG (nat gas), the instruments have no correlation and therefore the results will improve the equity curve as the drawdown for both systems is unlikely to happen concurrently.
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Great summary. exactly what we do.
 
Lena Mason said:
That's like asking if anyone has found a golden goose, which even if someone does they won't tell you. Akin to trading, auto trading is as difficult as it should be. It's not as easy as telling a system to trade stocks that will give positive returns in the future. Lots of studying, experimenting goes into it before even coming up with a trading strategy that you think will be profitable in the future.

You need to further backtest your strategy with past data to see how it works. Then do some paper trading with the strategy to see how it actually performs with the market data and make it resilient to all the volatile variables to can turn your strategy move in 180 degrees from your expectation. Then only you can say that you may have created a profitable strategy.

Investfly.com provides a comprehensive set of tools that enable you to do just that: backtesting, paper trading, auto trading and live trading too. If you are already comfortable with technical indicators, then you can give it a try.
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That site you linked to only supports backtesting 5 years worth of data which renders any backtest result slightly better than worthless.
 
Humpy said:
The future of trading is obviously having an automatic trading system which operates by itself 24/5 and is profitable.
There must be some systems out there but they may be prohibitly expensive. There is one on U Tube the owner wants 15 bitcoin for a copy ! It looks good with a small draw down and mega profits. But way too expensive.
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I have about 200 auto systems that have been profitable at various times in the past 15 years or so. I am currently running three systems that have been profitable for the last year. In my experience, auto systems work for a while and then the market changes and a different system is needed. I have never sold any of my systems, though I would happily accept payment if anyone offered. I have given away several of my systems to various fellow traders.

Here's a freebie for you: Buy Home Depot during the last 5 minutes of trading every day but Tuesday; sell it at the open the next day. This has been working several years. Of course, it could stop working any day now... :)
 
Steve Alexander said:
I have about 200 auto systems

Here's a freebie for you:
Buy Home Depot during the last 5 minutes of trading every day but Tuesday; sell it at the open the next day.
This has been working several years.
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All systematic/fixed trading systems, as far as I'm concerned,are weird and silly and rather dumb and close-minded and square. o_O

I don't understand or see how someone can reasonably expect to win and survive and thrive doing that.
I say this alot...but trading is part art, part science...everyday, each unique chart.

your avatar face looks like a cross between actors Charles Grodin and Steve Martin.

Make Trading Great Again 2018,...High-Five` ET extraterrestrial
 
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