Fully Automated Stocks Trading

valeryn

Junior member
Hi again Val. Above you recommend a mean reversion book by Howard Bandy. I have heard other good words about him so I am up to have a look at his stuff. But can you clarify which book you recommend? One is Mean Reversion Trading Systems. But a couple of the Amazon reviews say it is a bit light, and refers to detail in one or more of his other books.
Mean Reversion Trading Systems: Practical Methods for Swing Trading. I have 3 of his books and liked this one the most.

Val
 

BigChazza

Newbie
Mean Reversion Trading Systems: Practical Methods for Swing Trading. I have 3 of his books and liked this one the most.

Val
Thanks. Yeah that must the same one - I forgot the subtitle! Doesn't appear to be on kindle which is a shame, but I'll get it.
 

valeryn

Junior member
Thanks. Yeah that must the same one - I forgot the subtitle! Doesn't appear to be on kindle which is a shame, but I'll get it.
Here is another good one and it's available on kindle - Automated Stock Trading Systems: A Systematic Approach for Traders to Make Money in Bull, Bear and Sideways Markets
 

1nvest

Well-known member
Re t2w - I'm not sure why, but I get perception there is more activity on ET. Well I'm in PST so might be more of a North American thing. Either way - my journal there is 30+ pages and the reason I started was exactly to help other hard working folks to get a sense that it is possible, give some hints on what matters, have info re one trading method layout in a consistent way etc. I'll keep replying here if anyone has any questions, but not likely to publish much new stuff as it's double effort.
One of the problems might be, that you haven't really spoken about your strategy or what you're doing etc
I'm interested to know what you're doing, don't necessarily care about the specifics of your strategy(ies) but whether or not it complements anything i might be doing. However i haven't seen anything that enables me to identify with you
so far 2 or 3 posts
1 says you will talk more about what your doing..
a couple of posts about the election
a couple of posts answering specific questions
nothing more about you Valeryn
not meant to be criticism, just an observation. how does one get to relate to you without going to another forum
 

valeryn

Junior member
One of the problems might be, that you haven't really spoken about your strategy or what you're doing etc
I'm interested to know what you're doing, don't necessarily care about the specifics of your strategy(ies) but whether or not it complements anything i might be doing. However i haven't seen anything that enables me to identify with you
so far 2 or 3 posts
1 says you will talk more about what your doing..
a couple of posts about the election
a couple of posts answering specific questions
nothing more about you Valeryn
not meant to be criticism, just an observation. how does one get to relate to you without going to another forum
I didn't mean my thread here. Just my general perception. Perhaps it's the way ET shows new posts, easier to see relevant activity? Here I looked at automated trading and journals and most seemed either abandoned, about a very beginning of someone's journey or fibo talking to himself :)

Otherwise you have a valid point.

It just so happened that I started on ET and it doesn't make much sense for me to actively maintain two journals. The amount of material I've posted on ET is a size of a book.

In regards to whenever something I do compliments what you're doing - I can't help you with that. You will need to do the work to find out. There is a large quantity of material I already wrote, so I did my part. You can start with what I wrote here in my first post, it is enough to identify if that relates to you or not, consequently - to dig deeper or not and same with asking questions.

The essence of my trading is around multiple non-correlated strategies for stocks. I typically run 4-7 of them. All are developed and backtested using 70 years of EOD data. Number of trades executed per year is around 2k. Individual positions are very small, normally <5% of equity. There are long and short strategies. Typical hold is <5d.

Val
 
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valeryn

Junior member
From my experience, I can say that automated trading on the stock market is not the best idea. A good financier understands the changes in the market and can optimize the strategy for new circumstances. Unfortunately, the program cannot consider all factors to be ineffective.
Neither discretionary trader or automated systems do/can or need to concern themselves with all the factors. Only with those that make the system have sufficiently positive expectancy.

Both need to evolve over time. Automated system developer still monitors system's performance, general conditions and deviations from a model. Based on that adjustments could be made. How often they need to do that depends on how much data was used to validate system's hypothesis and how much time you're willing to spend. Generally the larger the validation data set the less frequent. My validation is done using 30-70 years of data across ~40k companies. Reviews are done ~ once a quarter.

It is common for profitable discretionary traders to have higher expectancy per trade than fully automated systems. Exactly because a good discretionary trader takes into account more things and adapts faster to changing conditions, like you mentioned. Automated systems generally compensate with number of trades and speed of execution, often being able to take advantage of situations that only last a few seconds.

With some automations you are getting back nearly all of your time. My time is quite expensive and I use it for something else while systems are trading. So can also put that into a piggy bank of benefits.

Both come with their cons and pros.
 
 
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