Is it necessary a discretionary consistency before make algorithms? - Commodities Futures Trading | futures io social day trading
futures io futures trading


Is it necessary a discretionary consistency before make algorithms?
Updated: Views / Replies:731 / 5
Created: by jdtrujillo1015 Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Is it necessary a discretionary consistency before make algorithms?

  #1 (permalink)
Trading Apprentice
Medellin Colombia
 
Futures Experience: Beginner
Platform: TradeStation
Favorite Futures: Oil
 
Posts: 7 since Jul 2012
Thanks: 0 given, 0 received

Is it necessary a discretionary consistency before make algorithms?

Hi,

I been doing systems on tradestation for around a year and for the last couple of weeks I been making discretionary trading on a demo in order to have more ideas for the systems, and I have been wondering:

¿Is it necessary to attain consistency in discretionary trading before being able to succeed in creating systems, or atleast convenient, or do you think the success in this two types of trading are not related?

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
 Vendor: tradingcode.net 
The Netherlands
 
Futures Experience: None
Platform: MultiCharts, TradingView
Favorite Futures: ...
 
Jura's Avatar
 
Posts: 774 since Apr 2010
Thanks: 2,347 given, 661 received



jdtrujillo1015 View Post
¿Is it necessary to attain consistency in discretionary trading before being able to succeed in creating systems, or atleast convenient, or do you think the success in this two types of trading are not related?

I don't think both are related. The required skill set for algorithmic trading is, in my experience, much more about models, theory, programming, mathematics, and statistics than discretionary trading is, which is much more about watching a few charts closely, trying to 'read' current movement, and constantly adjust one hypothesis.

Furthermore, not many algorithmic traders use technical analysis (as it is applied in discretionary trading) or might not even use a chart.

So experience with studying price charts won't probably help much (though knowledge of, or experience with, trading and market in general does help of course).

Reply With Quote
The following user says Thank You to Jura for this post:
 
  #4 (permalink)
Elite Member
NC, USA
 
Futures Experience: None
Platform: None Yet
Favorite Futures: Guitar
 
MrYou's Avatar
 
Posts: 403 since Jun 2011
Thanks: 618 given, 193 received


jdtrujillo1015 View Post
Hi,

I been doing systems on tradestation for around a year and for the last couple of weeks I been making discretionary trading on a demo in order to have more ideas for the systems, and I have been wondering:

¿Is it necessary to attain consistency in discretionary trading before being able to succeed in creating systems, or atleast convenient, or do you think the success in this two types of trading are not related?

I'm not trading live yet, but about to. I'll offer some comments from my automated system development experience over the past year...this is my opinion only, YMMV.

First if you're only trading experiences come from technical analysis then yes I believe some exposure to discretionary trading systems definitely help.

Automated technical analysis systems can work with higher time frames but they necessitate taking on higher risk so be sure you're only risking 1%-2% of your total trading funds. They also require diligently monitoring the current market conditions and adjusting accordingly. EDIT: Automated systems also require extensive backtesting and low risk live trading. This is very time consuming.

Automated scalping systems built on technical analysis are virtually impossible to be consistent. Its tempting to build one but its extremely difficult to quantify the varying details for a good entry/exit or a bad entry/exit.

Good luck!


Last edited by MrYou; January 16th, 2013 at 05:00 PM.
Reply With Quote
 
  #5 (permalink)
Trading for Fun
Sunnyvale, CA
 
Futures Experience: Advanced
Platform: TTTrader
Favorite Futures: CL
 
Posts: 160 since Dec 2012
Thanks: 8 given, 94 received

The only thing you need to be consistent with is the method you use to place real trades.

If your algorithm is an accurate reflection of your discrentionary system, then you'd better see consistency in the discretionary method first.

On the other hand, if your algorithm is only a vague approximation of your discretionary method, then there's no point in comparing the results.

Reply With Quote
 
  #6 (permalink)
Trading for Fun
Sunnyvale, CA
 
Futures Experience: Advanced
Platform: TTTrader
Favorite Futures: CL
 
Posts: 160 since Dec 2012
Thanks: 8 given, 94 received


MrYou View Post

Automated technical analysis systems can work with higher time frames but they necessitate taking on higher risk so be sure you're only risking 1%-2% of your total trading funds.

A solid trading strategy is realistically going to look at drawdowns that are anywhere from 1/4 to 1/2 your ROI. If you're risking 1-2% then you're looking at a net profit objective of 2-8%. This is positive which of course is good. But the lower end of that is not much better than current CD or money market interest rates, which basically makes such a strategy pointless.

Reply With Quote

Reply



futures io > > > > Is it necessary a discretionary consistency before make algorithms?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
An Attempt At Consistency AttitudeTrader Trading Journals 15 January 16th, 2013 07:11 PM
Watching algorithms work the stock market: The 'WTF SkyNet' Chart Du Jour Victory Trader News and Current Events 0 July 20th, 2012 02:52 AM
Do black-box algorithms move the ES with excessive volume to make just a tick or two? sidney7g Emini Index Futures Trading 15 June 12th, 2011 02:21 PM
Consistency is king caprica Psychology and Money Management 2 July 21st, 2009 07:34 PM


All times are GMT -4. The time now is 07:43 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.14 seconds with 19 queries on phoenix via your IP 54.226.132.197