Guys as a rule of thumb pls understand that anyone offering profitable strategies is just a scam.
Many people think that discretionary trading is an art as it involves mental discipline, quick thinking, good understanding of technicals and alot more.
They venture into strategy trading as they feel it is as simple as plug and play.
I would like to say that yes they are true to some extent, but its not all that.
A mechanical trader does most of his work before the strategy is live (idea generation, statistical viability, rigorous testing, most importantly correct testing, money management, dealing with every possible scenario possible in the market, avoiding curve fitting, monte carlo simulations) the list is not yet complete.
It takes around tens of ideas and hundreds of testings to produce one strategy that could be traded live. Now the problem is, many of the discarded ones and the one with which you are live look almost same as far as results are concerned but there is a heck of fundamental difference in them.
Running an optimization and creating a system is a very easy job, but is that system robust and will remain profitable in the future is another thing.
My writing is very weak, maybe i was not able to explain my points clearly. So here they are to the point.
1) No one will offer you profitable systems. Its just an illusion. Good backtests dont work in future, correct backtests do.
2) Dont venture into auto trading if you think its easy money. System traders need to work as much on every aspect of their trading as discretionary traders have to. Systems need to be revamped and adjusted regularly, its not an ATM.
3) If you still want to do auto trading, pls make yourself enlighted enough about the field. Successful System trading is much more than backtesting.
Dont fall prey to it.
Thanks,
MT
Many people think that discretionary trading is an art as it involves mental discipline, quick thinking, good understanding of technicals and alot more.
They venture into strategy trading as they feel it is as simple as plug and play.
I would like to say that yes they are true to some extent, but its not all that.
A mechanical trader does most of his work before the strategy is live (idea generation, statistical viability, rigorous testing, most importantly correct testing, money management, dealing with every possible scenario possible in the market, avoiding curve fitting, monte carlo simulations) the list is not yet complete.
It takes around tens of ideas and hundreds of testings to produce one strategy that could be traded live. Now the problem is, many of the discarded ones and the one with which you are live look almost same as far as results are concerned but there is a heck of fundamental difference in them.
Running an optimization and creating a system is a very easy job, but is that system robust and will remain profitable in the future is another thing.
My writing is very weak, maybe i was not able to explain my points clearly. So here they are to the point.
1) No one will offer you profitable systems. Its just an illusion. Good backtests dont work in future, correct backtests do.
2) Dont venture into auto trading if you think its easy money. System traders need to work as much on every aspect of their trading as discretionary traders have to. Systems need to be revamped and adjusted regularly, its not an ATM.
3) If you still want to do auto trading, pls make yourself enlighted enough about the field. Successful System trading is much more than backtesting.
Dont fall prey to it.
Thanks,
MT
