Hi Everyone,

I’m looking for help to develop a semi-automated or automated mechanical trading strategy that could pass prop firm evaluations and funding. I would prefer to trade NQ futures intraday, in the 5 minute chart, but I am open to changing if needed. Would anybody know where I can find such strategies for sale, or know anyone who could assist in creating such a strategy?

mrashfal 

Hi Everyone, I’m looking for help to develop a semi-automated or automated mechanical trading strategy that could pass prop firm evaluations and funding. I would prefer to trade NQ futures intraday, in the 5 minute chart, but I am open to changing if needed. Would anybody know where I can find such strategies for sale, or know anyone who could assist in creating such a strategy?

Why do you want an automated system for a prop firm? Feel like you’re doing it wrong if you wanted to automate the prop firm evaluation process, you should either be using the prop to test yourself or using on an already proven strategy to make money.

You want to develop a system? Do you have any experience in coding or trading? What platforms? What evaluation firms?

jlabtrades 

Why do you want an automated system for a prop firm? Feel like you’re doing it wrong if you wanted to automate the prop firm evaluation process, you should either be using the prop to test yourself or using on an already proven strategy to make money. You want to develop a system? Do you have any experience in coding or trading? What platforms? What evaluation firms?

Thank you for your reply. I understand that many people dislike both prop firms and automated strategies. Let me address each question:

1. The reason I want to go with a prop firm is that I don’t want to risk my hard-earned money trading with my own cash accounts just yet. I’m not a programmer. I do not know how to code. I’ve been researching many theories and ways to trade. I feel, like I have some intermediate knowledge, but it would take a very long time for me to develop a strategy, complete with stop losses, targets, etc… that would need to be backtested ad nauseum and forward tested before going live. I also feel like, as you said, I could use the prop firm as an initial test of a strategy to see if it will work live. If it passes the stringent and ultra-biased prop firm rules, I can then consider taking it live, if I have to; and

2. The reason why I would want to have a mechanical, semi-automated or automated strategy is twofold:
a. I run a business full time. Actually, I often work very long hours, nights and weekends too. Sometimes it is difficult to sit and watch the market for hours at a time, let alone, trying to analyze every potential swing or pivot (and backtest no less). The whole point of doing this really is to have more freedom, not less. It would be nice to have the program alert me at key times, so I won’t have to stare at live price action the whole day. I’d be surprised if in our day and age, programmers can’t come up with this. I’m sure they have, but they are keeping it to themselves;
b. I would want something that I can pass down to my kids and wife, so that they can potentially have more freedom in life and not have to worry about money.

This doesn’t mean I’m not willing to put in the work if I have to. I’ve spent countless hours studying all sorts of indicators and trading methods already. I’m not trying to skirt around the need to understand what the program is actually doing. I want to know, especially so I can understand why a program doesn’t work as well under certain market conditions. That’s very important. I am, however, looking for suggestions, so that I end up with a system that I understand, and is hopefully profitable.

mrashfal 

Thank you for your reply. I understand that many people dislike both prop firms and automated strategies. Let me address each question: 1. The reason I want to go with a prop firm is that I don’t want to risk my hard-earned money trading with my own cash accounts just yet. I’m not a programmer. I do not know how to code. I’ve been researching many theories and ways to trade. I feel, like I have some intermediate knowledge, but it would take a very long time for me to develop a strategy, complete with stop losses, targets, etc… that would need to be backtested ad nauseum and forward tested before going live. I also feel like, as you said, I could use the prop firm as an initial test of a strategy to see if it will work live. If it passes the stringent and ultra-biased prop firm rules, I can then consider taking it live, if I have to; and 2. The reason why I would want to have a mechanical, semi-automated or automated strategy is twofold: a. I run a business full time. Actually, I often work very long hours, nights and weekends too. Sometimes it is difficult to sit and watch the market for hours at a time, let alone, trying to analyze every potential swing or pivot (and backtest no less). The whole point of doing this really is to have more freedom, not less. It would be nice to have the program alert me at key times, so I won’t have to stare at live price action the whole day. I’d be surprised if in our day and age, programmers can’t come up with this. I’m sure they have, but they are keeping it to themselves; b. I would want something that I can pass down to my kids and wife, so that they can potentially have more freedom in life and not have to worry about money. This doesn’t mean I’m not willing to put in the work if I have to. I’ve spent countless hours studying all sorts of indicators and trading methods already. I’m not trying to skirt around the need to understand what the program is actually doing. I want to know, especially so I can understand why a program doesn’t work as well under certain market conditions. That’s very important. I am, however, looking for suggestions, so that I end up with a system that I understand, and is hopefully profitable.

Im not following, I never said i dislike prop firms or automated strategies?

If all you’ve done is theories, and no practice, instead of a prop firm for gambling on your first trades you should instead back test in a practice or demo account. If you dont have enough time to day trade and to practice and learn then you honestly shouldn’t be else your future will be full of pain and losses. Automating just lets you lose money faster.

If you want to trade its a full time job. Sounds like you’re looking for something more like an investment analysis if you want more hands off and long term for your family?

Just sounds like prime for failure if you need a computer to tell you when to buy, or buy for you because you’re too busy during the day. A more passive investment strategy might be better suited for you, like looking at daily trends and getting in for monthly or yearly holding times.

Thank you for your reply and advice. To clarify, I’ve been trading certain methods on sim accounts for quite some time now. I have had some success, but those methods are more discretionary and not well-suited for mechanical rules. I am searching for methods that can be more mechanical, that could include stop losses and take profits. I know they are out there, and programmers are there to develop them if needed.

mrashfal 

Thank you for your reply and advice. To clarify, I’ve been trading certain methods on sim accounts for quite some time now. I have had some success, but those methods are more discretionary and not well-suited for mechanical rules. I am searching for methods that can be more mechanical, that could include stop losses and take profits. I know they are out there, and programmers are there to develop them if needed.

So you have been successful in your sim trading? Whats your definition on a discretionary trade versus a mechanical one? Did you use stop losses and take profits in your sim trading?

Also why not try the sim trading strategy in your prop firms account and just let yourself take the time needed to pass. You cant rush a profit

jlabtrades 

So you have been successful in your sim trading? Whats your definition on a discretionary trade versus a mechanical one? Did you use stop losses and take profits in your sim trading? Also why not try the sim trading strategy in your prop firms account and just let yourself take the time needed to pass. You cant rush a profit

My idea of discretionary trading is that I have to make my own determination as to when to take a trade, where to put stop losses, and when to get out of a trade. If I have signals to assist me, and alerts when a trade is being set up, it would make things a lot simpler, so I don’t have to spend all day in front of a chart.

I have an indicator on Tradingview which defines manipulation and distribution levels very well on a 5 minute chart of NQ. I was hoping to trade from level to level. That would give me an easy place where to place stop loss and take profits. However, previous levels matter greatly (which makes sense, since it’s akin to a ‘higher time frame’ so to speak). The strategy, however, becomes a bit nuanced in that I have to look at the screen during the time I take trades, which I can’t do all the time.

I would love to trade level to level. Do you know of a mechanical strategy or method that can fit the bill?

mrashfal 

My idea of discretionary trading is that I have to make my own determination as to when to take a trade, where to put stop losses, and when to get out of a trade. If I have signals to assist me, and alerts when a trade is being set up, it would make things a lot simpler, so I don’t have to spend all day in front of a chart. I have an indicator on Tradingview which defines manipulation and distribution levels very well on a 5 minute chart of NQ. I was hoping to trade from level to level. That would give me an easy place where to place stop loss and take profits. However, previous levels matter greatly (which makes sense, since it’s akin to a ‘higher time frame’ so to speak). The strategy, however, becomes a bit nuanced in that I have to look at the screen during the time I take trades, which I can’t do all the time. I would love to trade level to level. Do you know of a mechanical strategy or method that can fit the bill?

Sorta sounds like you wouldn’t be trading at all, just providing the capital while letting the computer do all of the trading.

Well I don’t think its smart to get into something like that, but you can set up something yourself to auto entry exit on signals, have you searched the forums yet? Quite a few people have setup systems like this. Be sure to vet the site though, lots of phishy AI based scammy sites out there that look legitimate but dont hold any water

jlabtrades 

Sorta sounds like you wouldn’t be trading at all, just providing the capital while letting the computer do all of the trading. Well I don’t think its smart to get into something like that, but you can set up something yourself to auto entry exit on signals, have you searched the forums yet? Quite a few people have setup systems like this. Be sure to vet the site though, lots of phishy AI based scammy sites out there that look legitimate but dont hold any water

I understand. Before automating anything completely, I’d at least want to see what signals a particular system is giving, and test it out myself to see where it does and does not work. I honestly don’t want to risk my own capital blindly. That’s why I wanted to go the prop-firm route, once I have a system I can depend on. I know this site has a ton of great indicators, but I haven’t been able to find a good system that signals entries, stop losses and targets/take profits. Not to mention the potential to have to tweak it for day-trading NQ futures (and advice on best settings). Would you have any recommendations on any particular system or place to start?

mrashfal 

I understand. Before automating anything completely, I’d at least want to see what signals a particular system is giving, and test it out myself to see where it does and does not work. I honestly don’t want to risk my own capital blindly. That’s why I wanted to go the prop-firm route, once I have a system I can depend on. I know this site has a ton of great indicators, but I haven’t been able to find a good system that signals entries, stop losses and targets/take profits. Not to mention the potential to have to tweak it for day-trading NQ futures (and advice on best settings). Would you have any recommendations on any particular system or place to start?

Again you’re basically looking for a someone to do all the trading for you (find, execute entry, manage risk, and exit) , and if that existed they would trade it themselves. If anyone is selling one its probably poorly built or untested

how do you feel about the ATM strategies in Tradovate? Would that give you something useful?