These past 9 or so days show why it's difficult to be an
automated systems trader. I've found that about once every month or
two, for a couple of weeks or so, otherwise profitable systems are
a total crapshoot, giving loss after loss after loss after loss. In
fact, it's so frequent that I'm hardly phased by it. (Take a look
at a chart of the S&P. Whenever you see a 10 day series of
sideways moving, overlapping candles, that's what I'm talking
about.) However, there is good news: First, these don't generally
last any longer than 2 weeks, and we're pretty much there today or
tomorrow. Second, these consolidations are almost always followed
by some good days that almost always make up for (and exceed) the
previous 2 weeks of losses, some time in just one good day or two.
That's why I patiently wait, rather than turning my systems off.
(Otherwise I would miss the big move.) I've been trading these
systems for nearly 2 years now, and I haven't been disappointed
yet. So just keep this in mind if you've been enduring the same
crappy mechanical trading for the past 2 weeks as I have.
I am also interested in which ones you trade, and position sizes
etc. I am a new member and haven't heard anyone talking about the
systems yet, anyone else using the auto systems have any advice as
I'm wanting to trade them but would like more user info first.
I'll take about those systems again soon, however first thing
make sure to read the FAQ's and examples located in that section.
also look at the profit curves
As far as money management, use standard money management
practices i.e. if you have a 30K account, DON'T put $30K into one
system or margin up higher to $60K. maybe trade 5% - 10% of
your account only into anyone system. The biggest mistake
people make is by going all in, then when the system say loses a
normal 5% they freak out because they are over leveraged.
The most consistent system over time has been the BIDU 3 min
system
analyze the systems over time via analyzing the profit curves,
sometimes you need to turn systems off. Tom makes comments on
this once a week in the section
A Few Comments for Automated Traders
Posted by user32 on 30th of Sep 2010 at 11:18 am
These past 9 or so days show why it's difficult to be an automated systems trader. I've found that about once every month or two, for a couple of weeks or so, otherwise profitable systems are a total crapshoot, giving loss after loss after loss after loss. In fact, it's so frequent that I'm hardly phased by it. (Take a look at a chart of the S&P. Whenever you see a 10 day series of sideways moving, overlapping candles, that's what I'm talking about.) However, there is good news: First, these don't generally last any longer than 2 weeks, and we're pretty much there today or tomorrow. Second, these consolidations are almost always followed by some good days that almost always make up for (and exceed) the previous 2 weeks of losses, some time in just one good day or two. That's why I patiently wait, rather than turning my systems off. (Otherwise I would miss the big move.) I've been trading these systems for nearly 2 years now, and I haven't been disappointed yet. So just keep this in mind if you've been enduring the same crappy mechanical trading for the past 2 weeks as I have.
Mechanical Systems
Posted by maxeaus on 30th of Sep 2010 at 11:37 am
I am also interested in which ones you trade, and position sizes etc. I am a new member and haven't heard anyone talking about the systems yet, anyone else using the auto systems have any advice as I'm wanting to trade them but would like more user info first.
Max, Get a head start
Posted by darnelds on 30th of Sep 2010 at 12:12 pm
Max, Get a head start by searching the archives.
I'll take about those systems
Posted by matt on 30th of Sep 2010 at 11:45 am
I'll take about those systems again soon, however first thing make sure to read the FAQ's and examples located in that section. also look at the profit curves
http://breakpointtrades.com/premium/viewer.php?nl_id=22
http://breakpointtrades.com/market_lab/index.php/premium/mechanical_systems_overview /
As far as money management, use standard money management practices i.e. if you have a 30K account, DON'T put $30K into one system or margin up higher to $60K. maybe trade 5% - 10% of your account only into anyone system. The biggest mistake people make is by going all in, then when the system say loses a normal 5% they freak out because they are over leveraged.
The most consistent system over time has been the BIDU 3 min system
analyze the systems over time via analyzing the profit curves, sometimes you need to turn systems off. Tom makes comments on this once a week in the section
can you point out some
Posted by toochez09 on 30th of Sep 2010 at 11:21 am
can you point out some of the systems you've been using ?
Thank you