Tag Archives: falling

Do you short or sell a falling forex pair for profit

Do you short or sell a falling forex pair for profit

Looking for your advise here when you do this automatically or manually

https://www.dailyfx.com/forex/education/trading_tips/trend_of_the_day/2012/02/07/Short_Sell_Basics.html

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Trying to save people falling for trading gurus where you need to do DIY

Trying to save people falling for trading gurus where you need to do DIY

DIY = do it yourself

A person asked me from my Meetup group about this topic

 

I appreciate your quick response to my questions. I pretty much went through your 2 intro PDF’s from your website, and 

wow..quite a few components involved in Algo trading. Its definitely got all the data science/predictive modeling components that I am interested in learning and developing which is Stats and Python.

However am still very novice at this stage and lots of concepts you have mentioned in your intro manuals assumes that readers are experienced traders, so I feel rather overwhelmed. And considering even though I am a keen but slow learner, not sure if you recommend me attending your training next couple of weeks?

I guess what I am trying to say is, there are all these amazing tools, but I am having trouble piecing it all together. Like where do I start? Do I start with setting a short-term/long term goal first? Then learn Stats from Khan academy, then learn Python, then design Algo trading strategy, then try paper money? You see what I mean. Appreciate any guidance you can give me.

Also Bryan, been meaning to run something by you for awhile. I attended a marketing presentation by this PowerMind company early this year, promoting their services to train folks for credit spread system. Below is the link , and youtube link is the gentlemen who made the presentation., can’t recall the name but think Jim Francis was the main brainchild for this methodology.



The 2 full day workshop is $2,000 plus. It sounds very convenient for couple of hours a month. I haven’t followed up after that, but love to hear your thoughts about this system.


Looking forward to your response.

I respond here:

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Cpp demo of selling futures to protect against falling prices

Cpp demo of selling futures to protect against falling prices

Another quick demo from this

http://www.cmegroup.com/trading/agricultural/files/grain-oilseed-hedgers-guide.pdf

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

How successful is automated trading when almost all the world’s major markets are falling? Can any strategy save you

How successful is automated trading when almost all the world’s major markets are falling? Can any strategy save you or you rather stay away from market?

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Can do both (save you and put you in cash).

If your strategy can go both long and short, then volatility can only help you.

If you are monitoring the performance of your systems, then there can be a signal to go to cash (ergo no volatility).

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Don’t think so. One of the person using tradestation lost about a million using tradestation and has to manually cut his trade…
still, could u explain more?

A short term trend following strategy could have done very well in this market. Here is the intial blog post in a series about a filter to avoid extreme markets:http://marketsci.wordpress.com/2008/10/10/when-adaptive-systems-fail-and-what-i%E2%80%99m-going-to-do-about-it/

Correlations often come closer to 1 when there is panic (Ralph Vince has some good books on that topic). People tend to not include in their analysis:

Correlations between asset classes are not static or linear. (and yes, cash is an asset and can be a position).

The nature of strategies is constantly changing. As more people know about a strategy, the less profitable is becomes (hence, the profitability of a SP-500 mean reversion intraday strategy vs the old Turtle rules from 30 years ago).

Those 2 issues are usually not included in strategy backtesting. In addition, software programs like Tradestation do not let you backtest a portfolio of strategies – hence an incomplete picture.

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Let’s try to explain a little more:

A trading strategy can take a short trade as well as a long trade. If your strategy can take short trades, then even if a market is trending down, you can make profit.

Something like 90% of stock traders don’t know how to go short.

If you are analyzing your strategy to see if it is making money, or losing money, when your strategy starts to lose money, you can turn off your strategy, which would be “putting you in cash.” Which Anthony pointed out — is also a position.

In other words, doing nothing, taking no trades, and keeping your money in cash, is a very valid position. Most stock traders do this when they sense trouble in the market, or algorithmic traders when their strategies start doing poorly.

If you need more clarification, please feel free to contact me.

Good luck!

 

Actually when the markets become saturated with “autobots”, I switch to manual. An over-crowded playing field creates a vacuum as everyone’s “Bots” are draining spreads as they keep trying to “one up” their price points. I turned my bot off this morning (it made me good money the last couple weeks) and grabbed the wheel myself. It is good to shift gears

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!