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Would you run an automation unattended? Even with a good strategy, it seems like there are too many things that could go wrong. I could run an automated strategy from entry to exit, and I have thought about this, but I don't think I would be comfortable doing it for day trading.
Entirely unattended, no. But I am willing to let software supervise things for limited periods of time (a few hours at most) with very fixed parameters.
But you are right, there are lots of things that can and do go wrong and you need to be very careful.
Hey @YogaTrading - totally feel this the same way. When I got profitable, after a while it created a void in my life. Like in the years before I could spend 20 hours a day reading, learning, analyzing all this stuff. And at some point that goes away. It went away for me cause all I read now is stuff that I know doesn't work for me or I recognize it to be total b.s.
Also, as you say, I know for myself that all the money I need to get is in the first 2 hours of the open. But what to do with the rest of the day all of a sudden. Now that the freedom is there, it feels kind of hard to grab it. So I stop trading and still have the chart on in the background when I'm cooking dinner and I'm still looking at set-ups lol. And in fact, I really enjoy doing so.
Sort of feels as if when the market is done getting your money it wants something else from you so it now requires you to put in continuous discipline and trading actually becomes much more boring. Nowadays I wait for the open (which is 3.30 pm my time), I do my thing for an hour or two and I'm done. This is what my performance indicates I should be doing instead of keep trading, get tired, make mistakes, trade overnight and all that stuff. It's the most simple thing but incredibly hard sometimes to maintain the discipline while the market is only a mouse click away.
Thanks, Pa Dax
It really requires me to ask Why am I taking this journey? if it does not produce a better lifestyle.
so being sure it does requires an alternate plan.. Like not sitting in front of computers
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
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Posts: 5,057 since Dec 2013
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The honest answer is I wouldn't know until I tried it. I would say 60% of business is crude, that wouldn't change. 25% of my business is Natural Gas. Some of the opportunities have got away from me as I don't have time to chase low value things. The real key is the other 15%. At least one of the things I do has potential in other markets. But would it work? Bigger problem is I'm already trading to much. For example today I was super busy in NG, so wasn't paying as much attention to CL as normal. As it happened don't think I missed much but if I had been busy in both there is only so much you can watch.
But answering the question, I think yes!
I've automated a lot, but it really isn't as hands off as it could be. Why not then? Well two main reasons. 1) I trade a lot in less liquid markets. There's a big difference between 105/106 and 100/111 or even 90/121 but an algo sees 105.5 value in all three! 2) Some of what I do I'm competing with others, some who are a lot faster than me. Hence the problem becomes managing the out trades. Not easy to do in fully automated in illiquid markets!
I chose 'time', as my trading income is not near the income I can make in the same amount of time in my other business. It is a paradox which would take too long to explain, so I'll leave it at that.
I have learned, by my nature, that I have to be totally focused on trading when I am doing it. Automation of my trading eases this burden somewhat, but I'm not at a point where I can do both. One thing I can do is to keep learning, broadening my knowledge, and developing skills outside of my normal working hours.
My biggest weakness which I'm working really really hard at is patience. Patience for that A+ setup that I have no doubts about and will easily take anytime.
I don't know about that. I think you are right about the best traders with the deepest pockets. But, in retrospect, I can see I have taken the other side in some pretty raggedy, low probability trades, thereby doing my part to increase somebody else's chances of picking my pocket.
90+% of ES trade volume is by institutions. So its likely that the person on the other side of the trade is a computer. Computers don't make mistakes unless they are programmed to do so. Considering all the different time frames, trading styles, and objectives, it is also a good possibility that the person on the other side will make money, even if you do. It's a fallacy that trading is a zero sum game. You could be buying for a 240 minute swing from a trader who just profited from a 5 minute short scalp. You can both make money. The trader on the other side may have a wide stop with multiple scale-ins, so even if he shorted at the wrong time, his trade could still be profitable. Most reasonable trades, if managed properly, and unemotionally (that computer again), can at least break even.