Trading results with systematic process Meetup video playback
Here is the decscription of this webinar which will improve your trading results immensely
Here are my notes:
I am willing to talk about the psyche of trading when human greed kicks in versus following computer code logic. This is a tough battle to overcome but I think this is an important discussion to understand the psyche of this.
After talking to dozen upon dozens of retail traders who do and rely on technical analysis and indicators have their heads literally poisoned with negative propaganda that negates their trading results. I have fallen for that in so many ways in the last few weeks. Let’s address that if you ever want to transform yourself into having an automated or algorithmic or systematic trading setup.
–→ Do you believe in this theory?
More traps are laid out one must overcome with this notion of over-engineering their strategies with all these complicated indicators hoping that the moon will provide 5 Elliot waves to give them mercy in lucrative riches. Or how about those Fibonacci retracement levels that for some reason never work out.
→ do you really beleve in Fib or 5 Elliots work like magic on these extact wave X number of patterns? Is the market not so random it is hard to confirm these theories ?
1, Minimize your indicators
2. keep it simple
3. program a way to watch your order log when you put on a positions (entry), analyze your the evolution or life cycle of the position. Looks for peaks and if you can, watch the peak profit level of the actual position. Your broker API may have a simple method like P&L in USD. If not, you percent of move since entry. Note that position will go negative due to spread but if you have positive momentum, it should break out
4. confirm your max and min for break out when shorting or longing
5. always cut your loss once your position goes against you e.g. direction/momentum may come back but cut at approx 10% – always to minimize loss !
6. watch as many assets your hardware → the more the higher the # of opportunity
5. watch at a lower time frame like 1 minute since there are more opportunity but know how to minimize false positives and fake noize (this is the problem)
6. you can allow the profit for monster profit, I have seen if you hold position for many hours 7 or 8+ you will find huge profit but don’t get greedy, your pogramming logic should allow this instead of hard stop loss
7. note that I have scrapped 3 versions and rewevamping for a 4th time to keep the code tight, expect to keep doing that as part of your strategy development
A CCOUPLE OF MONTHS IF Value of DELTA (safe zone) HIT CERTAIN VALUE e.g. iron condor
Think or Swim
stop loss at 2 SD
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