Tag Archives: reason

reason why I get out of the low end automated trading market

Bryan here with some very important data on software source code and membership information too.

First, you might already know that I’m getting out of the low end automated trading market.

There’s some very good reasons for that.

The lower end of the market often features traders who simply aren’t as motivated as you’d think. “All show and no go” is the phrase that comes to mind.

Many of those traders strongly prefer short term trials as I’ve highlighted in this recent posting:

Check it out here

But short term trials simply don’t make sense for me.

That’s because the software source code I provide is highly valuable. And short term trials don’t really reflect that. The low end of the market typically wants something for nothing …

… and it’s too much time and trouble for me to block people from ‘lifting’ source code on the cheap.

So the low end pricing option I’m offering now is about to become history.

The good news is that I’m adding incredible value for serious traders who want much, much more than short term trials.

Here’s a sample:

Hedging currency futures and options during Brexit could make you very rich

Just imagine knowing what to look for during Brexit (or any other high volatility event), so you could automate it and make a mint.

A real mint! With the right automation implementation, your risk analytics could scan the markets in real time for risk opportunities in all major asset classes including forex, options and even futures.

The possibilities for serious profits are really impressive. Why do all the hard work when automation can handle all the heavy lifting for you?

I’ve got some great thoughts (and more) on that:

Find out more here

If you’re serious about getting to grips with implied volatility, you don’t want to miss this.

Get more details from the Algo Trading Course series:

Find out more here

Good Trading,
Bryan
Quantlabs.net

P.S. But before I go, here are the current pricing options:

MONTHLY: $97/MONTH: Click here 

(I’m dropping this option VERY soon so this will be one of your very last chances to get the monthly membership)

BIGGEST SAVINGS with 8 month BONUS months ($800 savings): Click here

Huge savings are available right now on both long term memberships.

That means this is a great chance to get a lot of free months right now. Just take a longer membership and save up to $800 while you still can.

Find out more about what you get right here

P.P.S. Remember I’ll be removing ALL source code and video demos of my Equity Strategy in 2 weeks. That’s a hard deadline so you need to jump this ASAP!

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Contact me now though Zenadesk for support or query only for this reason

Contact me now though Zendesk for support or query only for this reason

 

I get overwhelmed easily from too many queries. There are numerous choices now here for you

https://quantlabs.net/analytics/analytics-support/

 

 

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FINAL reason why I get out of the low end automated trading market

FINAL reason why I get out of the low end automated trading market

 

Here is the real and FINAL reason I am getting out of this lower end market. A correspondence over the weekend from someone new joining last Saturday:

 

hi, I have already sent out two emails asking you why i\’m not able to access any of material on your website? i would like to have an answer. If i don\’t get an answer i will be forced to ask for a refund or i will report it to paypal and my credit card. Via WP Live Chat Support

 

 

I protect all my software assets so I am no a proponent of short term trial users. if you cancel immediately, our system is designed to lock all those out so that is the result you see on all the access points to the membership. Would you like a refund instead?

 

 

On any article or part of the website that i click on i see the same page which is the on e with position management go to meeting and all to the other articles after that. When i click on other pages as well it takes me to a signup or it tells me “premium content for elite members only”

 

I did cancel my recurring paypal because i did not know what i’m getting for the money i’m paying and plus if i paid a month already should’t i have access anyway for that month?…

I understand that and i completely agree you, but at the same time i also protect myself against something that i have never seen and don’t know if it is useful to me. You probably know better than me all of the useless things out there on the net. If the material is useful i’m the first one to be interested and willing to pay. I’m just trying to learn and improve my trading strategy that’s it.

 

 

I have refunded you. I will now take this as a final lesson not to allow smaller payments for a software membership to vast amounts of source code worth is probably in the hundreds of thousands. I hope you understand. I also understand your position with full respect but note our source code is becoming highly more valuable then ever so I think our minimum charge might be worth 12x what you paid. In the future, I will be changing this style of membership  to target pure traders who are only interesting in the trading signals/community that this future system will bring. You may want to try then. Hope this helps you out and sorry for any hassles at my end.

 

In summary:
Hopefully you will see why I am getting out. It seems I will not have these issues with a data analytics service as they seem to be more realistic in how vendors work only Monday-Friday during regular business hours. Also, most active traders will not be beginners who will pay top dollar as they are established at what they do full time.

Join my FREE newsletter to learn more about this new analysic trading service

 

 

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Reason why I don’t go to a quant trading conference

Reason why I don’t go to a quant trading conference

This video explains why and which ones maybe useful for beginners and institutional players

Join my FREE news to learn more about how I don’t need these conferences

List I talk about :

http://www.icbi-derivatives.com/page/user

http://www.quantcon.com/

http://fpq.io/

Home

http://www.quantcongressusa.com/

http://www.quantcongressusa.com/

http://www.terrapinn.com/conference/the-trading-show-new-york/index.stm

http://quantconferences.com/

http://events.risk.net/quantsummiteurope
I am sure there are many more I missed

 

 

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Reason why I love Matlab 2015 Simulink

Reason why I love Matlab 2015 Simulink

I have never seen these gauges in anything like this new Simulink 2015. Pretty INNOVATIVE awesome stuff!

Join my FREE newsletter to learn more about my use of Matlab Simulink for trading 

http://www.mathworks.com/products/gauges/

Newer:

http://www.mathworks.com/products/gauges/

http://www.mathworks.com/videos/dashboard-block-library-99897.html

 

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How to apply psychology of trading when you put your positions on? CRITICAL reason to automate while retail traders WILL always lose money

How to apply psychology of trading when you put your positions on? CRITICAL reason to automate while retail traders WILL always lose money

Sorry if there are any typos here. Note that there is a video below as well

To succeed at life and risk management, you need to trade in a non human way. OTW automate your trades!!

Use average true range (ATR) to apply stop loss between a long and short. You set stop loss a 1:3 ratio as a soft target for the life a trade. You analyze the volatility when to apply the stop loss as part of the soft target. You are applying risk management and look at the reward over the risk. You can the calculate your capital deployment and strategize the situation when trade becomes winning or losing.

1. Set up risk reward on your new spread position.

2. There are various scenarios that need to be applied in certain outcomes.

You need to set hard stop losses and soft targets. This is done using ATR. The stop loss needs to be wide enough on the spread to profit over the trading horizon you choose. They also need to be NOT wide enough killed on discipline. No rule book applies here. You need to look at historical volatility of the time horizon you choose.

From there, you should be able to work out a sensible stop loss. It is over the time period you choose. As said, you choose a soft target on a 1:3 ratio of your stop loss. If you have a market price of $100, stop loss of $90 (exit trade to trade out automatically) the stop loss is 10%. This will also become your hard target but this is incorrect as you could keep trading for extra profit if that hard target is reached. Stop losses will guarantee your down side, if you set a soft target you are not guaranteeing your upside. You are taking on more risk but could even be adding more that position.

During your spread trade, you want to know the history of the spread. You would even want to see how the long and the short may perform against the ISM PMI as a comparative benchmark. You also would want to calculate monthly volatility. With a long and short, you will intend to cancel out the volatility to hedge out market and sector risk. With implied volatility calculate, you will isolate if both long and short are in the same sector. As a result, you remove market and sector volatility. With no news sentiment with no market impact, you could find your long may move up 1% vs the short may move up 1.5% which cancels out the price movement and volatility on a normal day. If the market goes up + or – 1%, the long and short should move in the same direction which means you will cancel the volatility.

Get the OHLC of each asset for 10 months historical, you will see an volatility over this period of potentially 1-3 months for the trade horizon. Calculate the 9 monthly ATRs each. You can then get the average of those for the 10th month. This will be applied from a rolling ATR of each 9 months. You can use this 10th month average ATR to calculate your disciplined stop loss. If you reach the target, you could be knocked out of the market if the stop loss is reached, but you are still applying discipline on the trade. You could apply positive price action and positive technical analysis here as well if all checks out with previous rules mentioned. You could apply a sensible stop loss in the range of each calculated long 10th month ATR and short 10 month ATR.

 

So if you current spread is 4%, you calculate your stop loss (10%) ratio with the current spread could =4*.10=0.4. Your new stop loss target could be =4-0.4=-3.6. Using a 3:1 target, that would become 3*3.6=.108.Your new soft target price will be 4+0.108=4.108. You will be able to see in a historical price chart that it has hit that price before which means it is realistic. If you use a long term trend line, you may see the current price may hit your soft target price. On another historical price chart, it would be recommended to draw different colored lines to show the soft target price and stop loss. You will visually be able to see the risk/reward play . One line would show you would be knocked out if the stop loss is reached. It is critical for the TRUE spread to work, you get stopped out of BOTH long and short not either. You trade both on at the same time, and you stop both at the same time. You are putting automatic stop losses on single positions. For most brokerage, you cannot apply the ratio of each spread. Again, do not apply stop losses on single positions for either long or short. They both need to be applied at the same time on the entry and exits. If done manually, you may need to cross check both your spread sheet on these as well as check your broker trading account to ensure these spreadsare within the correct soft targets. Or you could automate this process!! If these soft targets are reached, you may need to trade out manually if no automation is applied.

IMPORTANT FOR RETAIL TRADERS:

This enables you now to trade like a non human which is a long term failure for most retail traders. You will lose money otherwise over the long run. If you are losing on a trade, you need to follow the above process! You will always have winners in your portfolio so don’t worry if some of these will move against you. This will set you apart from the bad traders since you will have a proper framework, you do the correct thing with the losers and winners. If you do the opposite to be human, you will lose money over the long run by seeking more risk when a trade goes against you or with you, you are trading out at the proper target levels you establish with the process listed above. This process is the opposite of human which means long term profit. We don’t worry about trades that go wrong. This is why automated trading is critical to remove all the manual processes trade above. Stick with the habits of above, you WILL make money in the long run.

 

REASONS TO SET SOFT TARGETS and HARD STOP LOSSES THANKS TO AUTOMATED TRADING

If current spread is 4, $10k deployed for long and another $10k deployed for short. If your long out performs your short by 25% in 3 months, you may not want to trade out. You can run the position or apply more capital (or even margin), you could add to the wining trade. If there is $20K in the position, you could use the soft target with the above example. Your new stop loss could be 90% of the soft target where you roll the stop loss ratio. You want your new entry price to be below the new stop loss price. On a rolling basis (only generated automatically), your average price is comfortably under your stop loss. You are now getting free trades which means your stop loss will be above the average price. Your winning trde becomes a free situation. Your stop loss is above the average price which means if you are stopped out, you are still profiting. Even if the trade goes against you, you will still profit no matter what. Don’t do the opposite by trading out of the soft target and watch it go up during a rally. Humans could do that inadvertently when the market is presenting you a winner.

As result, you need to ensure your stop loss is wide enough to profit over the time horizon you choose. FOr mid and large cap situations on all major US and European indices, the stop loss ratio will be between 7-12%. This when you analyze your ATR over 3 month time horizon. The soft targets of 1:3 will be between 21-36%. As a result, you need to understand these parameters in future positions you will take. This will help you understand the risk/rewards on your positions and to play within those scenarios. Remember you still need to add the proper spread trading idea and screen process before applying the above.

If you use this process, you will get rid of the losing trades and constantly add new winning trades by following the right idea generation and screening process. If automated, you will never notice the guilt in getting rid of the losers. Over time you will be add more positive and circumventing the larger losses.

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Is this the real reason quants are replacing Matlab with Python and even C++ 11.x? Easier than DOTNET CSharp?

Is this the real reason quants are replacing Matlab with Python and even C++ 11.x? Easier than DOTNET CSharp?

I asked one of my newsletter subscribers about Python, this is the answer I got:

Most of the quants I know have abandoned MATLAB in favour of Python.
Just look at the provided functionality of NumPy, Pandas, Matplotlib and SciPy and you get the idea.
And what about IPython and Cython.
Do have a look at C++ 11… almost easier to code than current C#
This is one reason I may revisit it in coming months. Remember nothing is final until you are profitably  trading with real money!

Join my FREE newsletter to learn more about my advances in these programming languages

 

One more item:

Hi Bryan, this is tool of choice for Python quants:

Regards,
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Here is a BIG reason why I stick with Matlab over open source FREE languages like R or Python

Here is a BIG reason why I stick with Matlab over open source FREE languages like R or Python

Just posted this:

Can you build a trading operation with incompatible packages with the likes of R or Python? No thanks I will stick with Matlab | Technical forum | Forum

See more at: http://quantlabs.net/academy/forum/technical-forum/can-you-build-a-trading-operation-with-incompatible-packages-with-the-likes-of-r-or-python-no-thanks-i-will-stick-with-matlab/#p344

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Reason why Oracle don’t about patching security breaches in their new Java 7 JVM version

Reason why Oracle don’t about patching security breaches in their new Java 7 JVM version

http://forums.macrumors.com/showthread.php?t=1525310

It comes down to two things:

1. Oracle, as a corporation, has no incentive to fix security issues. It doesn’t generate profit.
2. Taking a PR beating eventually provided enough incentive – it finally lit enough of a bonfire under their nuts to fix the issue.

 

After removing the latest Java, I can safely I say I don’t get mysterious Windows update daily.

In a nutshell, Java is outta here!

No need to flame me after working 8 years with it.

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Youtube video reasons Why Quant Premum membership is delayed for 1 week for 50% increase which is coming Jan 22 2013

Youtube video reasons Why Quant Premum membership is delayed for 1 week for 50% increase which is coming Jan 22 2013

–> JOIN NOW BEFORE THE QUANTLABS.NET PREMIUM MEMBERSHIP GO UP 50% <–

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