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What a trader must do before his first trade


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What a trader must do before his first trade

  #31 (permalink)
jonesie
New York City, NY, USA
 
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Jemo View Post
Thank you for your input. This brings up the question how does one verify if he had an edge, and sample size etc. I realize answers are almost endless to this question. Thank you again for your input.

Backtesting with statistical analysis of results. It seems to me that people erroneously couple algorithmic trading with artificial intelligence. To me, discretionary traders should be able to turn their strategies into algorithms (remember: an algorithm is just a series of steps) and should want to backtest their strategies. I was a discretionary trader for a little while (am taking a break to study systems trading) and couldn't tell when I was right versus when I was lucky. Given an algorithm, there are many ways to code and test. Currently reading Kevin Davey's "Building Winning Algorithmic Trading Systems" book. Started last night and ate through 1/4 already. It's good stuff and well worth the price. Might be a good starting point.

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  #32 (permalink)
 kevinkdog   is a Vendor
 
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jonesie View Post
Backtesting with statistical analysis of results. It seems to me that people erroneously couple algorithmic trading with artificial intelligence. To me, discretionary traders should be able to turn their strategies into algorithms (remember: an algorithm is just a series of steps) and should want to backtest their strategies. I was a discretionary trader for a little while (am taking a break to study systems trading) and couldn't tell when I was right versus when I was lucky. Given an algorithm, there are many ways to code and test. Currently reading Kevin Davey's "Building Winning Algorithmic Trading Systems" book. Started last night and ate through 1/4 already. It's good stuff and well worth the price. Might be a good starting point.

Thanks for the book plug!

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  #33 (permalink)
 
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 t0030tr 
Detroit, Michigan, USA
 
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Jemo View Post
Thank you for your input. This brings up the question how does one verify if he had an edge, and sample size etc. I realize answers are almost endless to this question. Thank you again for your input.

Well hopefully from the use of your tools/system.

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  #34 (permalink)
HinduMVP
Canada
 
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Jemo View Post
what do you mean by screen time ? Is watching the ES ticks during the time a worthwhile screen time ? Do you suggest a paper trade for it to be screen time ?

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Screen time meaning just watching prices print to the chart. I believe it's good to paper trade first until you're consistently profitable.

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