I've been lurking around on this forum for a few weeks. But now it's time to say hello to everyone. I'm a long time software engineer and a intermediate trader, doing some trading in my free time, and I want to move on and want to make a living from trading.
As most of the people out there, in the beginning, I thought "It can't be that hard to write a program, that makes some automated trades to get lots of $$$ without any work." But I was wrong. After losing lots of money by simply doing stupid things (now I know, how stupid and naive I was back then). Well I read a lots of books, lots of internet sites, and now I'm here
During that time, I developed over the last years a software on my own, which helps me to develop, backtest and live trade my strategies (well, I'm a OS X user and there was no usefull software available).
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By reading the title, you can see, how and what I want to trade. Currently, I would like to trade (automated) the Bund Future (FGBL) and Euro Stoxx 50 (FESX), intraday, using swing trading (for me, swing trading means, that after every new high follows a new low, as you can see in the screenshot), using maybe 5, 10 or 30 minute bars. And I want to trade as "naked" as possible.
What do think? Is this sane or insane? Currently, I haven't developed a strategy yet or thought about filters to get ride of the bad trades, so I don't know, if this idea is usefull or not, I want to hear some thoughs about this from the users here, if it is a good idea or a dead end.
Well, if you want thoughts, IMO you're still poorly defined the project.
Start trying systems from usual indicators. Play a bit with them at all levels (parameters, backtesting, etc). Next, look for better ideas from what develop a system; maybe from some indicators/systems shared here in futures.io (formerly BMT)F. Again, play with them (simulated).
And unless you have a strong impression of having found "something", go thinking that must invent something to base and develop your algorithmic technique.
thanks for the answer. And you're absolutly right, I poorly defined, what I want to achieve. I just want to get some input from others, who may have done the same thing in the past.
Trading in so short time frames (e.g. 5 minutes) produces lots of noise and signals. So, I guess the first question would be, if there are any indicators, which are more robust on such short timeframes.
Done, but I strongly recomend the process I said in the other post; try, play, with all the rest of indicators and its combinations (MACD, CCI, etc, etc). And be aware about other very important component; the volume (another whole World).