Automated trading versus discretionary trading

Client said:
the problem is that there are too many variants and individual cases. Machine just can't take them all into consideration... Wave count hasn't been programmed properly at the moment and there are objective reasons for that.
Click to expand...

It will be impossible to program profitable strategies with lagging moving averages and cycles on lower time frames , because there are so many variants patterns and cycles.The main obstacle is separating random noise cycles and trends.On the higher time frames , it may or may not be profitable.
 
911=falseflagblackop said:
Knowing what i know about trading really well. I really cannot see how one could develop a system that does it all for you automatically.

Once you get to the major leagues as a discretionary player, the elite level of trading, the fun is in the fill, & your ability to enter & exit at the right prices for near maximum profits. So why would you want to stop this in order to be some jelly belly flump who sits on the couch watching while their computer do the work.

The art of trading is knowing where to exit & when to enter.
Click to expand...

There is a different style to being perfect in entries and exits, its called getting the high probability slices of trends ,where the trader does not go for entire trends .

High probability trend trading is actually a better method of trading, than being greedy for full trends and getting caught in a trend reversal.The beginning of trends are often very choppy, where greedy trend jelly pumps get eaten up.

There are some mentors teaching high probability trend trading i.e Mr Charts.

ODT
 
You resumed here what i´ve been dealing with, you are rigth! :clap:

oildaytrader said:
My experience to date suggests automated works well on currencies, due to the nature of the 24 continuous market without disruption and manipulation.The indices are in a highly manipulated market with disruptions of intraday closes/wall street opening hours , and restrictions on falls in the indices.

What types of automated strategies would work with indices?

My profitability comes from automation and automated systems.

http://www.trade2win.com/boards/gen...fitable-automated-trading-12.html#post1084340

Automated trading has loads of advantages whereas discretionary trading has loads of disadvantages.

Advantages
1)No need to monitor markets and watch screen, trades are placed automatically
2)No greed , fear and discipline problems, software doesn't suffer from these problems
3)No money management or positive expectancy shortcomings, MM and PE are precoded in system.
4)No need to look for trade parameters i.e entries, exits ,stops,and trade management i.e tsl , b/e etc is done automatically by software.
5)Can manage multiple strategies,set ups and instruments simultaneously.Sometimes as many as 20 set ups are traded simultaneously , using different systems.
6)Computer does not need to go for no 1 or 2 or breakfast lunch and dinner, and often missing great trading decisions
7)Computer is not distracted by wife, children, phone calls,postman ,neighbours etc
8)operates 24 hours a day without a trade time nap
9)Doesn't require alcoholic beverages during trade time
10) Strategies can be backtested and forward tested without committing real money, only if strategies are profitable is real money employed.
11)highly complex method can be precoded.


Disadvantages

1)Discretionary traders can see a better view of set ups whereas automated trading is limited view based on rules coded .This applies to exits,entries and trade management.

http://www.trade2win.com/boards/gen...ing-easy-making-money-hard-5.html#post1086248
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You know no one can get the full trend, you can foresee it, or you can simply get it with a good trend chasing method, those guys teaching riskier ways to follow a trend really dont know what they do, so good point for you.:smart:

oildaytrader said:
There is a different style to being perfect in entries and exits, its called getting the high probability slices of trends ,where the trader does not go for entire trends .

High probability trend trading is actually a better method of trading, than being greedy for full trends and getting caught in a trend reversal.The beginning of trends are often very choppy, where greedy trend jelly pumps get eaten up.

There are some mentors teaching high probability trend trading i.e Mr Charts.

ODT
Click to expand...
 
fayalac said:
You know no one can get the full trend, you can foresee it, or you can simply get it with a good trend chasing method, those guys teaching riskier ways to follow a trend really dont know what they do, so good point for you.:smart:
Click to expand...

Here is an example to prove the point.The longs are entered with a 12 pip to 16 pip stop , after a reversal to the trend line on the 1 min charts.The trades are immediately exited with a total profit of 11pips on cable and 7 pips on euro , total 18 pips .The trendline reverses immediately afterwards and the greedy perfect trend jellies are still holding a position on a reversal in the next five minutes.

This is high probability trend trading.

http://www.trade2win.com/boards/general-trading-chat/89566-predictive-chart-patterns-set-ups.html
 

Attachments

  • trend jelly.bmp
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Surely the overriding advantage of a mechanical system is the ability to backtest and to see how it would have behaved and under what conditions.

If you develop, e.g., a mechanical trend system, then familiarity with the underlying market is not a pre-requisite.

Thus many more markets can be traded, increasing the chances of exposing the system to favourable conditions.

Statistically, you're likely to make money in the long run, and avoid the usual pitfalls of cutting winners too soon/running losses/trading emotionally.

Funds like JW Henry, Campbell and Dunn Capital have made huge sums of money over the years using mechanical systems.. however, most people feel the need to predict and be right, so it doesn't appeal to the majority.
 
N Rothschild said:
you ever taken a live trade before odt? i reckon your about 15
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Here are today's live trades.30 pips so far @ $1 per pip, very soon $10 per pip , then followed by $100 per pip.Soon 60 pips a day @ $100 per pips = $ 6k per day.


Rothschild you were on my ignore list ,and putting you back on it.Keep trading pocket money with dumb weekend trades.:LOL:
 

Attachments

  • llive.bmp
    1.8 MB · Views: 169
as for pocket money dumb weekend trades, like the 140point gap up in euro while i was long? real dumb eh?
 
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