Okina, thanks for reading and thanks for adding your perspective and interesting story! There are lots of opinions between discretionary trading vs. automated trading, and there are no right or wrong opinions as everyone has their own style or preference.
The key reasons that I enjoy automated trading so much are as follows:
1. Quicker entries and exits. My programming can do do things that I can not do as fast because it sees and analyzes conditions that would take me far longer to compute manually.
2. 24 hour a day trading vs. how ever many free hours I am willing to do it.
3. Any rules for trading that can be thought of can be programmed, though you have to be a fairly good programmer to do some of the more complex stuff.
4. Visibility to process or incorporate more information into your trading decisions vs. what a human can do. For example a computer can enter, exit or add or subtract contracts based on an infinite number of very specific conditions being true, but as a chart trader looking at a screen I could only ever catch a few conditions before it would be too late to make my move.
5. The ability to test the merit of different trading ideas: This is the big one for me. As a chart / discretionary trader you can only test as much as you can physically sit through in real time. So naturally with only so many hours in the day to dedicate to sim trading you can only really vet / test a system, or idea so much. With programming a system to trade for you it is possible to test it over hundreds of thousands of trades over several years.
I have never thought of an idea or concept for trading that I couldn't program, but I am a professional programmer first and foremost, so I have a slight edge over casual traders that are trying to hack around in C# and can only do basic things.
Just a few pro's that I have noticed that I wanted to throw out there for anyone that is interested in automated trading.
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Anyone want to try out a profitable Ninja Trader code
So just for fun, I found a hack or cheat code if you will, that will allow you to profit an obscene amount of money using the ninja trader market replay in NT 7. Here are the settings:
1. Market Instrument = ES, though this would likely work in any market with a little bit of sizing work.
2. Date Range: (Any week in the last x years, it really doesn't matter, they all have the same results)
3. Time Settings: 300 tick to 1000 tick or anything in between seems to work find. I haven't tested much else but I assume they will get the same results.
4. Ninja Trader Settings: Enforce Immediate Fills = checked or true
I am just going to throw this out there to anyone that is interested in testing this and obviously there is a catch here, but at the same time quite a bit of practical application and theory that can be gained from this exercise.
I am interested to see some different perspectives from this community about why this works, what the catch is and hopefully some insight into practical application. I have already developed several real trading systems that can beat any sim on any market and some of them use a basic concept that can be learned from this. So obviously I know the answer the answer to the question: "What if anything can be useful from this, and how can it be applied in real trading". I am interested to see if anyone out here can grasp it and understand it.
For those that can, there may be a chance for future collaboration.