I have been working on Automatic some aspects of my trading idea in the last month or so. So, i wanted traders to share their view here regarding Automated or Semi Auto Strategy.
I understand that most traders would like to use auto system that does everything, and this could be great for many depending on the person. But how about using pro order to enhance the manual process.
My view has been that any system need to be simple for the person using it. So, for any strategy to work, it has to replicate manual strategy as closely as possible. In back testing I have noticed that no matter which strategy, there are times strategy performs poorly while other time it may perform great. So knowing what the strategy does exactly is something I am trying to use the Auto trading system. I am a trend trader so a 40% win for me means massive. In the past while manually trading, the issue i had was not being able to monitor market constantly resulting in getting in earlier or later than setup etc giving mixed result overall. Could the Automated system help resolve this issue?
I am not looking to load a strategy and let it do my work but my process will be something like this,
- Analyse the chart as done manually using pattern – which auto system cannot do
- Do all the work exactly and determine where to get in based on indicators, fib etc
- Load the strategy when close to the market and wait
- Even if 1 out of 3 trades succeed, the gain from single trade will be big enough
- I enter 2 positions at once and close 1 of them early and ride the next one.
- So far I am not convinced with any trailing stop codes that could help me ride the second unit properly but once into a trade i can do it manually until if can code something
So, the purpose of using the automated system is basically avoid the human emotions once the setup is there or when there is no setup. ALso monitoring market for setup is daunting as its a 24hr market.
To enter the trade i need to optimise the strategy so i am confident that it will place an order in key areas I want it to. So, finding a balance of good win rate with max number of trades is not easy.
My view is that even with a simple strategy with positive result – the manual process mentioned above should filter out some of the bad trades. Because the entries are based on indicator setup, I am not sure why it would be different than manually placing orders as there is no discretion except for STOP loss level. Auto order takes a bit wider stop levels, but that should be fine.
Please share your view or experience on similar idea. I am sure some may be using something similar.
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