suggestion on auto algorithm auto trading system
am considering buying blue wave auto trade system that can generate signal and initiate signal trade fully automatically since i want to take emotion out of the execution process plus my almost no time availability due to my full focus on work but would love to be involved in trading
Can you help answer these questions from other members on futures io?
It is a common misconception that automated trading takes emotion out of your trading.
MONEY takes emotion out of your trading - that is why there are so many demo/sim millionaires out there, but very few real money trading millionaires.
You will still have emotion in automated algos, IF you are trading real money.
My experience is that anyone who says "auto trading takes away emotion" either does not trade significant (to them) real money, or only sim trades.
Don't believe me? Just wait until your automated algo goes into its first long drawdown. Emotions will show up "should I turn off algo? Should I increase size? Should I decrease size?" etc.
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I don't believe there is any working autotrading strategy for sale, if it was that good to begin with it wouldn't be for sale.
Better to come up with it yourself by using extensive testing. Choosing the right market. timeframe and exploit the markets movements to your benefit is the way to go.
You need to stick to your strategy no matter what, even if it fails sometimes. Same thing goes for manual trading.
I have a failsafe of 50% drawdown on my bots, if it hits that failsafe you either have made some false calculations in your code or something has changed in the market you trade.
Either way something has to be done to fix that problem in the future, this is why I make my own bots instead of buying them.
Unless you trust your code. You need to understand what your bot does and doesn't do.
That's why you don't buy a bot, better build it yourself or pay somebody to build it for you.
Of course my 50% dd failsafe isn't going to work if there is a black swan event, but then again no manually traded position would be safe either.
