Watch my 11 minute video below to let me know what you think via commenting
My exit forex trading struggles
This video presents 8 random forex trading (from Dukascopy Jforex 3) positions that my current automated trading system picks up. It seems that the Average True Range and Simple Moving Average fast/slow moving crosses are lagging. The only reliable exit indicator is the equivalent of ‘take profit’ but I choosing potentially Profit N Loss in US Dollar for any open position. Would it not make sense to statistcially calculate the best target with most likely peak average of any position.
What this video reveals
This shows how random these positions. It is so random that there is no pattern but still some positions exceed $.70 for 0.001 amount traded. This is from my Dukascopy API which can call Profit and Loss in US Dollars for any open order.
What to do?
Should you use a combo of the Average True Range and Simple Moving together. Should you allow the trader to stay open e.g. as in hours? It seems the ATR is useful for the downside risk to protect your bad trades. It just seems that there are too many (money losing) trades as you can see in this video.
What would you do?
It seems you could any which way you would go concerning these combination of indicators. Someone even recommend Hull This was recommended within my private Telegram group:
For an idea of an exit, something I’ve tried in the past is using the Hull indicator set to a period of 2. When there is a large excess beyond something like a bollinger then that’s the end of a movement.
Here are some internal links to help you from this blog
I think these beginners who learn about “quant” on cloud solutions are misunderstanding what it really is. When you get legendary mathematicians who focus on finance like Paul Wilmott who complain about bankers being lazy, I hate to say I agree with him. I just made a video on the weekend showcasing what real quant looks like from a well-known PhD researcher.
For me, instead of focusing on large news events, I like to consistently add to my bottom line in many ways. I’m also trying to find the most optimal way to do it in an automated way. As I mentioned yesterday, I have now posted my latest video on how to use inter temporal pricing for arbitrage opportunities. I could just have a whole system do this all day and all night for find multiple commodity assets in an automated way. Remember this is one of dozens of resources I could use to find opportunity.
You may be thinking I like lots of videos. Would you be surprised if I was to tell you I have over 1500 videos on my YouTube channel? Yeah, you could say I like producing and recording raw videos.
Anyhow, imagine all those videos that have potential ways to bank is quite scalable in so many ways. Why do you think I focus on automated trading with optimal trading strategies? Ha this is why I’ve created the most exciting online trading membership of its kind.
Finally, we are now coming up to three days before I hit my first LIVE lesson with my “Algo Trading Business with Python” course series. This starts the eve of March 15 this Tuesday. I really want you to jumpstart your learning from the ground up in all the topics that you want so that you could start your own algo go trading business just like Dr. Ernie Chan.
I have almost finished posting all the content for my first phase of my pair trading strategy as well. These are the weekly lessons I’ll be starting in the second week of May: