Learning profitable automated trading

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Old Apr 20, 2010, 6:49pm   #162
Joined Jan 2009
Re: Learning profitable automated trading

Whacky spelling of privileged, like your style ..
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Old Apr 20, 2010, 6:50pm   #163
Joined Mar 2007
Re: Learning profitable automated trading

oildaytrader started this thread
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Originally Posted by meanreversion View Post
You need to constantly monitor every aspect of the mechanical system, which is where the interest lies. But as with discretionary trading, there will always be quiet times, hence the existence of t2w.
I don't have to monitor my automated trades, just glance for 5 minutes once every two days at the screen .You get a life with automated trading , only price to pay is the drawdowns and software costs.I have no stress and am free all day.

With semi mechanical strategy most things like alerts,signals,exits etc and set ups can be semi automated.There can be a load of free time with semi automated mechanical trading.
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Old Apr 20, 2010, 6:59pm   #164
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Re: Learning profitable automated trading

True, but my medium term project is to try to evaluate if there is value in optimizing my parameters in the future. I use Amibroker, which has an excellent walk forward application.. I have about 5 or 6 parameters.... does it make sense to re-optimize once a year? It's going to take a bit of testing to work it out.
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Old Apr 20, 2010, 7:02pm   #165
 
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Joined Oct 2008
Re: Learning profitable automated trading

simple fact is, if you were capable of discretionary trading you would do it. you turn to automated systems in the hope they will make you rich because you cant do it yourself. well guess what, its not going to make you rich!
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"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader
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Old Apr 20, 2010, 7:06pm   #166
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Re: Learning profitable automated trading

oildaytrader started this thread
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Originally Posted by meanreversion View Post
True, but my medium term project is to try to evaluate if there is value in optimizing my parameters in the future. I use Amibroker, which has an excellent walk forward application.. I have about 5 or 6 parameters.... does it make sense to re-optimize once a year? It's going to take a bit of testing to work it out.
I do not believe in optimisation or optimising every so often. A strategy must stand the test of time without any changes, unless improvements are added.If parameters are optimised to suit today's market conditions, market conditions tomorrow could revert to previous conditions etc etc etc , so you are always chasing your tail optimising and constantly re optimising.
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Old Apr 20, 2010, 7:07pm   #167
Joined Jan 2009
Re: Learning profitable automated trading

Well, my approach is this .. the market takes no prisoners so you need to be very honest about your capabilities. If you're good at discretionary, good luck to you. I know I suck at it.. moreover, having spent over ten years trading at some fairly large banks, I know that the vast majority of traders suck at it. If there are 100 traders at a sell side institution, I doubt if more than 5 are good discretionary traders.. nearly all of them make money from client flow. So, each to their own devices. If I was a multi-billionaire from trading, I would feel in a position to advise others. But I'm not, so I'll only say what works for me. Each person needs to find their own method.
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Old Apr 20, 2010, 7:10pm   #168
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Re: Learning profitable automated trading

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Originally Posted by oildaytrader View Post
I do not believe in optimisation or optimising every so often. A strategy must stand the test of time without any changes, unless improvements are added.If parameters are optimised to suit today's market conditions, market conditions tomorrow could revert to previous conditions etc etc etc , so you are always chasing your tail optimising and constantly re optimising.
Have you backtested to see whether re-optimization actually works? Simpy saying 'it's like chasing your tail' has no basis in empirical evidence ... you should know better than that.
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