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Before I used automated trading systems, I often missed market moves because I wasn’t in front of my computer. Your car is an automated system, but even the best car in the world needs to have good brakes to make it a good car.
Sometimes you want to exchange, buy and sell signals to prove that a reversed signal is a market disadvantage. It doesn’t matter if you are 35 or 53 years old. You just need to decide to do what it takes and do one step after the other. Sometimes something totally unexpected happens and now you have parted from all your money within half a year or so.
Brokers know their numbers and they know that you will most likely be history in six months or less. If you have a bigger account, you can try a bigger risk setting, but I still would go with a low risk and a lower drawdown. In my opinion, good automated trading is very boring. If you increase your risk setting carefully and your results improve, that is the right thing to do. Use an account size so small that losing the whole account will not affect your emotions and a total loss will not affect your lifestyle. Trading automated and strict rules makes it less exciting for traders. But if you are looking for entertainment, you probably should consider Netflix.
A good recipe is a good way to get the result you want.
A good recipe is easy to follow, and a good recipe has all the parts you need for a good outcome. You cannot change the wind, but you can change the set of the sail. Now, what will happen if you have high waves on the ocean? I guess you need to change the direction of the sailboat, otherwise it might sink. You can’t live two different versions of the same day, but you can trade two different versions of the same trading year.
There is a way for you to gain real trading experience with thousands of trades, but in a fraction of the time you would need otherwise. An automated solution is something that will leverage the effort that is needed to get to the top of the skyscraper. Or in other words, it does the work for you so you don’t have to climb the stairs yourself. When it runs, like on rails you can also increase the risk setting. In an automated back test, we go with a fixed value.
But in real life, you would probably look at your account each and every day. When I started out, I took lessons from my broker. You know, the guy who makes money anyway, even if you ruin your account? The best way to improve trading results is to use this huge speed advantage to do back tests again and again until you are satisfied with the results. Algorithmic trading requires consistency, and often it looks like the system would not work properly. The worst possible outcome is something like the world record for being struck by lightning.
If you read the Wikipedia article about Roy Sullivan, you will learn that this guy is the only person that survived seven lightning strokes. I often reversed my original idea. For example, I increased the take profit points, and now I would do the opposite and decrease them.
Why would you do the opposite of what you thought could be a market advantage? Because if I found a real market advantage, I should be able to measure it. Do you agree to that?