This journal will track my progress in trading in an automated fashion.
History
Those that follow my other journal know that a good portion of my trading is already automated, based on historical probabilities I subscribe to from MasterTheGap ( and executed for me with an automated strategy. This has been a useful form of trading for me, but I don't like that I rely on a 3rd party vendor for a large portion of my trading plan. So I'd like to have something of my own that is tailored to my needs and how I want to trade.
I have been studying and automating strategies for a long time. Besides the MTG gap fades, I have gone through brief periods where I've traded live money with automated strategies, all with success but I would always stop them because there were certain things I didn't like about them and would stop on top with a small profit. Luckily these small bursts of profit would have all been lost with periods of draw down that awaited me right around the corner if I had continued running them.
Purpose
The purpose of my journal is primarily for myself, but also to share some of the things one goes through while trying to automate their trading.
Demonstrate methodologies for discovering and testing trading strategies
Demonstrate how to deal with the emotional and psychological challenges of automated trading
My purpose is NOT to
Define in detail the rules and algorithms of any particular strategy
Upload strategy code that you can run and double your money with overnight
As a professional programmer, I have been drawn to the idea of automated strategies for some years now. Many of you have too. Many say automated trading can't be done, and they may be right, but I believe that if you understand a market, its characteristics, and have enough programming skills and determination you can automate the same rules you follow in your successful discretionary trading. It may be hard to program "conditions" or "context" but just because it's hard doesn't mean it can't be done.
I know there have been a lot of debates about the pros and cons of automated trading on this forum and throughout. I am not trying to prove anybody right or wrong, rather, I just want to document some insights and discoveries that might make it worthwhile that are pursuing the same path as myself. While developing strategies I come across a lot of different decision points that I think some of you maybe can help me with that others may benefit from.