Is there anyone here who has a consistently profitable automated trading system?

[bouale93]

Of course they exist. Many hedge funds out there are purely systematic

 

[themickey]

Of course they exist. Many hedge funds out there are purely systematic

The thread title is: "Is there anyone here who has a consistently profitable..."

 

[rb7]

Things like for example classic chart patterns such as flags, wedges, H&S, or volume behaviour patterns within those chart patterns are very hard to code. Many good programmers tried, but so far the trained human eye is better. Obviously, it comes with subjectivity.

Mechanical systems are good for mean reversion, or bar by bar analysis, and stuff like that.

No, it's not that hard.
And a computer can identify patterns way faster than humans. Like thousands every second.

 

[rb7]

The thread title is: "Is there anyone here who has a consistently profitable..."

There are a few here pretending they are.
Out of those, probably half are really profitable.

 

[virtusa]

Again a stupid thread without any added value.
Like many threads on ET.
What will the answer bring to you as added value?

Whether the answer is yes or no, it will not change anything for you and not help you to decide what to do.
Because what matters is what YOU can achieve. Do you have the required qualifications to become successful or not? Only future can tell.
Don't judge on what people post on ET, as the large majority has no clue about consistently profitable trading. That's why they are here.

The fact that you even don't recognize the low level of the average ET "trader" gives an indication about what you know, or rather what you don't know yet.

 

[virtusa]

What sort of patterns cannot be recognized by computer?

All patterns that are not first put in the computer by humans. A computer is completely lost if there is no input from humans.
Only the patterns that are put in the computer can be recognized, patterns that are not in the computer are never found by the PC.

 

[2rosy]

I worked at firms (high volume) where I never saw a human trade unless there was some error. I also have never come across a profitable retail trader.

 

[toucan]

I ask because I heard an interview with Linda Raschke where she said she didn't know any such traders. I thought that was pretty significant as she is a very successful trader herself.

I have tried quite hard over the years to automate some winning trading rules, but with no success in the long term.

I am not asking anyone to reveal any secrets, I'm just interested to know if it is possible.

i've talked with a number of traders that seem to have been sucessfull in automating. in general it seems many of the longer term traders that have automated are consistently profitable for longer periods of time (just think of automation during a bull market), but the shorter the timeframe and the closer you get to daytrading, it seems like the quicker the automation fails.

just my opinion
toucan

 

[virtusa]

I also have never come across a profitable retail trader.

That's normal; if they would be profitable they would never work there.

 

[virtusa]

i've talked with a number of traders that seem to have been sucessfull in automating. in general it seems many of the longer term traders that have automated are consistently profitable for longer periods of time (just think of automation during a bull market), but the shorter the timeframe and the closer you get to daytrading, it seems like the quicker the automation fails.

just my opinion
toucan

The difficulty grows exponential in relation to the shrinking of the timeframe.

LT also use less leverage and has much smaller returns. Because of the small leverage (if there is any leverage at all) allows them to stay long in a losing position, hoping to get out without a loss.
In daytrading that is impossible as you have no time for that. The trading system should be much more performant and is much more complex. So the more complicated the less people are able to make money.