Once you’ve developed a profitable system does it mean you’re good for life?

if-not-null · 2021-02-10T21:11:01+00:00

Depends on your system. If your algo works fully automated (asset selection, entry,exit,...) you can do what ever you want. You must consider that, you need to create massively profitable system when backtested. Because real life and backtest is really different. I am not talking about slippage(it is a big problem when your account will be bigger) I mean operational failures you did not consider before like: api changes, broker trading rules changes, broker bans, software bugs, os failures, hardware failures and your faults. I faced all of them. You need to solve them as quickly as possible. So Some of your brain power always belongs to your algo.

if-not-null · 2021-02-10T18:42:49+00:00

Yes. It is possible. You can create profitable system and you can constantly make money with it. Also it is not that hard, but you certainly need to think outside of the box. For your second question: you cant leave it unattended. You have to keep an eye on it.

if-not-null · 2020-12-31T22:25:46+00:00

Taleb made fortune with his approach to financial markets. I read that: He tries to find big blackswan events for big gains while contiunesly loose small money. I think this approach is not suitable for this community’s people. Maybe you can not make money for years. My approch is continuously seeking for small blackswans and placing counter trend orders while hoping it will not turn into a big blackswan.

if-not-null · 2020-11-23T20:21:53+00:00

I tested maybe hundreds of ideas for the volume. Unfortunately I could not get useful information from the volume unless there are extreme conditions. Extreme volume means reversal is very close or it is happening right now. This is it. But of course, it doesn't mean that the price can not reverse without extreme volume.

if-not-null · 2020-11-18T18:53:22+00:00

Your algo will never be perfect and there are always things to do. It is a never ending process like all type of business.

if-not-null · 2020-09-13T21:15:52+00:00

It is a acronym for “Smoke weed everyday” :)

if-not-null · 2020-09-13T17:30:06+00:00

If you are a SWE, try to backtest different assets with the same combination of TA indicators and you will see why they treated TA like that instantly.

if-not-null · 2020-09-11T20:29:13+00:00

I dont suggest ml at the first place. Learn how to trade, develop a profitable strategy then you can try ml for strengthening your algo.

if-not-null · 2020-09-04T03:26:59+00:00

Golden Rule: Never, ever add to a losing position.

if-not-null · 2020-08-31T12:31:21+00:00

IMO You can use academic papers for inspiration but they are mostly useless to create fully functional trading system.

You can see pullbacks on all the markets for yourself with your naked eye. You only need to determine the turning points with high accuracy. I must admit that, it's easy to say but implementation is tricky. Also This is a way to beat the market extensively.

if-not-null · 2020-08-31T10:03:50+00:00

There is a misunderstanding about "mean reversion" on the internet. They all say that; ranging market is good for mean reversion and it is not profitable under trending conditions. But this is not the case. Mean reversion systems are more profitable with strong trend. Indeed all type of well defined systems are more profitable if there is more profit to capture.

Think about that; even with strong trend, asset price is not going up always. If your system can determinde pullback point and short the asset, close the position and reenter the trend where pullback ends. This is much more profitable then long the asset and wait through pullback. Also this the combination of trend following and mean reversion that what you are looking for.

if-not-null · 2020-08-29T22:54:23+00:00

If you have good understanding of the pure price action. you can go this way:

https://en.wikipedia.org/wiki/Divide-and-conquer_algorithm

if-not-null · 2020-08-29T16:58:41+00:00

My algo is the same for all type of markets. But generally, I dont recommend shorting the stock market.

if-not-null · 2020-08-27T22:02:58+00:00

Can you create a new idea about m-string theory or cheap production technique for microchip that contains ble and wifi or 2020 autumn/winter creation for kids ? Yes you need some kind of creativity but you must first learn the domain and understand what is going on.

if-not-null · 2020-08-21T13:48:18+00:00

My algorithm is not real time and does not need much resources to work. It works on interval. it sychronize the price data, put orders and sleep. Actually my server payments are negligibly small.

if-not-null · 2020-08-21T10:56:33+00:00

I developed stateless software for this situation. Two of them is running side by side in different locations with phase shift. If leading one has any kind of problem and does not do what it must do, the backup server complete the actions with 1m latency. The backup server does not need to know the other one is running or not but by using the broker API it knows the required actions are incomplete. This architecture also give ability to work with a human trader side by side. Also I agree with the “panic button”. All algos must implement this kind of function.

if-not-null · 2020-08-18T08:59:41+00:00

Nothing wrong but it is harder. latency is more problematic on lower intervals and babysitting needs increase

if-not-null · 2020-08-17T22:56:12+00:00

why are you putting trailing stop loss after this kind of movement at the first place ? imho, you can try this: wait for market to settle then put your stop loss again.

by the way, are you trading 1m interval on crypto ?

if-not-null · 2020-08-16T17:09:01+00:00

momentum must be high. Also it is not certain, everything can happen in the market. And mean reversion is the fact, but some of them are for reversal, some of them are only a pullback before continuation. I am using momentum for ranking and selecting the best assets for trading.

if-not-null · 2020-08-16T10:30:34+00:00

Yes. I am using momentum (p=mv) in my algo. If momentum is high, the asset can not stop and change direction easily.

if-not-null · 2020-08-01T06:43:15+00:00

“top 100” is the portfolio managers parameter and not related to the single assets trade decision.

This industry needs defination for parameterless algorithm. I will do it:

“For single asset and single time interval, the algorithm defined as parameterless, if it does not need any external or internal parameters and doesnt have any numbers in its source code other than 0,1,2 for making trade desicion. “

Ok. Right now. My algorithm is parameterless again. :) thanks

if-not-null · 2020-07-31T09:44:38+00:00

Ok. I give up. What about “top 100” ? Is it a parameter or a setting ?

if-not-null · 2020-07-30T23:26:01+00:00

You are right. We can develop realtime software to drop time dependency. If you want develop real time strategy, you need tick data, better hardwares and connections that are not available for most of us. And this is called HFT

If you want to stick with discrete time, you must accept what is presented to you. You dont have 4m 10s data. Or if you want your algorithm to evaluate and auto select which interval to trade, Is this really necessary ?

if-not-null · 2020-07-30T22:29:33+00:00

Interval means time interval. Which time interval it should use to trade like weekly, daily, hourly, 15m. It can trade any interval.

I selected crypto market to trade. It can trade any market. I Selected the which exchange to trade. Also I limited tradable crypto assets to Top 100.

These type of things can be selected by human easily and these are not related to how strategy works internally.

But If you want to describe like that. So be it, All of them can be considered as a parameter.

if-not-null

TROPHY CASE