Learning profitable automated trading

This is a discussion on Learning profitable automated trading within the General Trading Chat forums, part of the Reception category; Originally Posted by meanreversion For some reason I'm not getting email notification of thread replies ... going back to something ...

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Old Apr 20, 2010, 5:44pm   #145
 
montmorencyt2w's Avatar
Joined May 2008
Re: Learning profitable automated trading

Quote:
Originally Posted by meanreversion View Post
For some reason I'm not getting email notification of thread replies ... going back to something I posted earlier, simply dividing total return by number of years overstates the CAGR.

E.g. let's say you made 200 pct in 10 years, that is NOT the same as 20 pct CAGR, it's more like 12 pct/year (1.12^10 approx equals +200 pct profit).

Thus it is accurate in this example to say the system makes 12 pct a year, not 20 pct a year. This is a common error I see frequently.
http://www.moneychimp.com/calculator...calculator.htm

I made it 11.61%

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Anyway, you two ladies continue..
That was no lady; that was his secretary.


I want to see an indiscretionary trading system.
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Old Apr 20, 2010, 5:47pm   #146
Joined Jan 2009
Re: Learning profitable automated trading

You could design an indiscrete model to trade, and call it a 'Kate Moss'.
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Old Apr 20, 2010, 5:47pm   #147
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Re: Learning profitable automated trading

oildaytrader started this thread
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Originally Posted by N Rothschild View Post
1500$ profit over 958 trades? are you actually for real?
The lot sizes if increased to $10 per pip would make it $15,000 , or $100 per pip to $150k.
Trading $1 per point is no reflection on the system, it is just me increasing stakes slowly.
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Old Apr 20, 2010, 5:51pm   #148
 
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Re: Learning profitable automated trading

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Originally Posted by oildaytrader View Post
The lot sizes if increased to $10 per pip would make it $15,000 , or $100 per pip to $150k.
Trading $1 per point is no reflection on the system, it is just me increasing stakes slowly.
well it managed to draw down 30% on $1 a point, some how i dont think there would be much of your account left if those losing trades were 10 times the size.

i think what makes this all so funny is, you clearly cant trade and have no clue how to, so you design these pathetic systems, which return about as much as a savings account!
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Bullsh!t, Bearsh!t all smells the same to me!

"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader
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Old Apr 20, 2010, 6:02pm   #149
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Re: Learning profitable automated trading

oildaytrader started this thread
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Originally Posted by meanreversion View Post
This is the advantage of a mechanical system which you truly believe has statisical edge ... you're able to trade through the drawdown. Typically, a system with a CAGR/Max DD ratio of over 1 is considered good (e.g. over 10 years it returns 30 pct a year, with max drawdown 30 pct).
After every 5,000 pip gain increase stake by 20 % , the equity curve will be far greater, probably get in excess of 100 % per annum using your cagr method of calculation.

All figures are in pips on excel sheet.
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Old Apr 20, 2010, 6:04pm   #150
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Re: Learning profitable automated trading

oildaytrader started this thread
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Originally Posted by N Rothschild View Post
well it managed to draw down 30% on $1 a point, some how i dont think there would be much of your account left if those losing trades were 10 times the size.

i think what makes this all so funny is, you clearly cant trade and have no clue how to, so you design these pathetic systems, which return about as much as a savings account!
Mr 14

with larger lot sizes you have bigger account size i.e money.
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Old Apr 20, 2010, 6:05pm   #151
 
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Re: Learning profitable automated trading

but you're not..your making 1500$... or do you not trade to make money?

no one cares about woulda coulda shoulda
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"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader
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Old Apr 20, 2010, 6:05pm   #152
 
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Re: Learning profitable automated trading

Quote:
Originally Posted by oildaytrader View Post
Mr 14

with larger lot sizes you have bigger account size i.e money.
, but you don't or you would have done it..
__________________
"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader
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