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I've witnessed some bona fide traders proclaim a robotic strategy doesn't have to be complicated, while also hearing that complexity is necessary to be profitable, so, clearly, multiple approaches to the same overall problem can work. Interested to hear from other experiences so...........shoot!
Can you help answer these questions from other members on NexusFi?
It really depends on your edge / alpha signal. If you are fast enough you can get by with fairly simple strategies. If you don't mind picking and choosing when to stop and start your strategies manually you can get by with more simplicity also.
For example when the market is highly volatile you can do well with the basic MA cross over types of strategies.
If you want your strategy to be 100% operator free then it would need to know when to run and when to sit on the sideline, or when to run strategy a for market conditions x and strategy b for market conditions Y. This is where complexity starts to creep in. Outside of HF edges there are few systems that can do well on both trending and ranging days without first reading and reacting to (is this a trending or ranging day). So this level of complexity may or may not be beyond the threshold you have in mind, but this is a minimum consideration for a truly operator free strategy.
In the analytical world there is no such thing as art, there is only the science you know and the science you don't know. Characterizing the science you don't know as "art" is a fools game.
Really thankful for that response. Hopefully it'll serve to help many others too, and maybe one day it'll be possible to make some valuable contributions of my own.
I'm sure everybody has different perspectives on this, but in my trading world..... The edges I have found with more complexity do not perform as well over time as the ones with simplicity. My most profitable edge only relies on price action and Volume. It is lower percent profitable, but a higher W/L Ratio and Lower Max drawdown than any of my complex strategies. Robotically speaking though, I have to babysit the strategy. Sometimes it will blow past my entry even when it is placed 20 minutes in advance. This doesn't usually happen, but it can. With my more complex strategies the entries are sometimes so fast they come with lots of slippage. So in short, although both approaches can be profitable, be ready to babysit any strategy. Its not set it and forget it! Robotically speaking?
