I wrote a bot and gave it 25k to trade

931 said:
Why not code drawdown kill switch at level where you are comfortable.

Then computer does the worrying for you.

If switch triggers then could send notification to phone and start to evaluate situation.
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Already tested that out, it wouldn't work. A drawdown like yesterday's would be too small to intervene. It's a (short-term) trend following strategy, so any attempt to take profits too early would damage the returns. It requires ample margin for both profit target and stop loss.

Of course the computer warns me of every situation, indeed most of the time I'm sitting 3 meters away from it.
 
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_terminus_ said:
All positions stopped out, net loss -3384$ (-7.43%).
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Was this from your long strategy? It looks like you're running high probability setups but the small percentage of time you stop out it eats away at your pnl, is this correct?

Do you look at any larger factors to occasionally turn off those long strategies or are they always able to trigger if the trend identifies as up?
 
Positions get stopped out all the time, but in this particular case the hit was bigger than usual. Expected from backtest, not an anomaly.

Turning on/off strategies completely is at my discretion, not automated.
 
How often do you decide to turn the long strats off? What types of things are you looking for when you make that decision? Do you look at larger market factors or more based on your change in pnl, both?

_terminus_ said:
Turning on/off strategies completely is at my discretion, not automated.
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Makes sense, I'm in a similar boat. I want to be a little more proactive and objective when deciding to shut things off rather than be reactive. I'd prefer this analysis be automated and outperform my discretion but I haven't been able to put together the right logic. Any general thoughts would be greatly appreciated!
 
In my opinion, the best option is to trust the system, let it alone as much as possible and only intervene when something really strange happens. The risk of taking action because of emotions has to be reduced as much as possible.

In other words, better to spend more time developing self-reliant algos rather than having to shut them on and off too often.
 
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