On the Path to Profitability

[lawrence-lugar]

I sometimes see things while trading that I cannot see in purely automated trading. A well trained trader can see in seconds things that are, for most of us, impossible to be programmed.

I wholeheartedly agree.
Every trading day is completely different -- it's like DNA, or a fingerprint. No two charts and/or the forces moving the chart are ever the same composition.
Each day requires a certain, unique blend...of art and science in trading.

 

[Q3D]

I wholeheartedly agree.
Every trading day is completely different -- it's like DNA, or a fingerprint. Each day requires a certain, unique blend...of art and science trading.

But you can't execute them in realtime without automation due to HFT now, so I'm like Picasso with a nice canvas and lots of brushes but no paint. No amount of smiley faces is going to make up for this.

 

[i am nobody]

But you can't execute them in realtime without automation due to HFT now

I can understand that you need automation if you are a disabled person, but what has HFT to do with this???
If I get a signal I buy or sell at market. And I have to click on the buy or sell button, no automation.

 

[Q3D]

I can understand that you need automation if you are a disabled person, but what has HFT to do with this??? If I get a signal I buy or sell at market. And I have to click on the buy or sell button, no automation.

 

[i am nobody]

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I am trading around 25 years and never had a price that was more than 2 ticks away (ES) from the price on my screen when I hit the button.
Your charts shows that there was a spike that was about 2%. You can place a limit order to avoid these spikes, but that has still nothing to do with automation, so automation is not needed at all.

 

[Q3D]

I am trading around 25 years and never had a price that was more than 2 ticks away (ES) from the price on my screen when I hit the button.
Your charts shows that there was a spike that was about 2%. You can place a limit order to avoid these spikes, but that has still nothing to do with automation, so automation is not needed at all.

Risk of ruin is increased greatly if HFT is clearing the order book out prior to reversing. Your opinion of ES shows you're not trading RTH during morning open, reports, daily close of RTH, or FOMC.

 

[i am nobody]

Risk of ruin is increased greatly if HFT is clearing the order book out prior to reversing. Your opinion of ES shows you're not trading RTH during morning open, reports, daily close of RTH, or FOMC.

I trade when I have a signal, no matter when that is. I do trade openings but only if I have a signal. I never wait for the close. I don't care about reports as I follow my system. Reports are not important, what is important is: what is your position when there are reports coming out? If I have a few points open profit, reports cannot hurt me as I have a big margin before my entry price is hit. And my statistics show that reports are not dangerous as I never got really hurt. I also only trade a small part of my capital. I can wipe out my account 5 times in a row and start again without risking my initial investment, just using my accumulated profits. In real trading I wiped out once my account, in 1995, because I did not follow my system. The human factor.

Can you explain me how automation can remove this risk? Does automation skip the spikes and unexpected moves?

Can you show me these spikes in the ES? Spikes that happen are always in the direction of the trend, at least in my system. Or after a period when the market does not move for a long time, where my system takes no position as I need to see a trend.
The only market I had problem in was Forex. With unexpected interventions it was very dangerous. So I left that market.

 

[RRY16]

Risk of ruin is increased greatly if HFT is clearing the order book out prior to reversing. Your opinion of ES shows you're not trading RTH during morning open, reports, daily close of RTH, or FOMC.

It sounds like your lacking a father figure or mentor to help you with your HFT issue...maybe say Al Brooks or D.B.

 

[Q3D]

I trade when I have a signal, no matter when that is. I do trade openings but only if I have a signal. I never wait for the close. I don't care about reports as I follow my system. Reports are not important, what is important is: what is your position when there are reports coming out? If I have a few points open profit, reports cannot hurt me as I have a big margin before my entry price is hit. And my statistics show that reports are not dangerous as I never got really hurt. I also only trade a small part of my capital. I can wipe out my account 5 times in a row and start again without risking my initial investment, just using my accumulated profits. In real trading I wiped out once my account, in 1995, because I did not follow my system. The human factor.

Can you explain me how automation can remove this risk? Does automation skip the spikes and unexpected moves?

Automation generally increases a trader's ability to control risk. Discretionary traders can't enter, place stops, and place limit orders in a fraction of a second, they would struggle to do that in under a minute, and unlike automation, they are PRONE to error, amplified by the lower the time requirements, which leads to near-certain risk-of-ruin for discretionary traders in efficient markets.

 

[i am nobody]

Automation generally increases a trader's ability to control risk. Discretionary traders can't enter, place stops, and place limit orders in a fraction of a second, they would struggle to do that in under a minute, and unlike automation, they are PRONE to error, amplified by the lower the time requirements, which leads to near-certain risk-of-ruin for discretionary traders in efficient markets.

I don't need to place stops or limit orders in a fraction of a second. I trade on average 2-3 RT a day. I pick my moments very carefully, which results in a high % of winning trades. While many daytraders have a lot of stress and jump around all the time, I watch my screen and wait 90% of the time to open or close a trade. Most of my trades go immediatelly in profit just because I try to be very selective and can patiently wait if necessary a few hours before entering a trade.
When I am trading 90% of the trading time I am just waiting. Can be difficult because I can lose my concentration because of lack of action.
I can buy, sell, reverse, go flat in 1 click if needed.