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Our take on 100% automated trading

Mar 10, 2020 - 10:52 PM

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https://best-trading-indicator.com/community/bti/forums/3873/topics/15779 COPY
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  • Well said :)

  • Forewords

    I made trading bots my whole career so I know a thing or two about them... and the common point is... they ALL get wrecked at some point.

    Especially this week (10th March 2020), I'm sure most of them got totally out of control now that trading Trump's tweets ain't working no more, that the volatility is extremely high (VIX > 50%).

    100% automated trading is a fairy tail spread out by trading gurus - the started from 2K, now are 200K gains 2 months later kind of gurus.

    I can't believe how many people fall for those obvious scams and showing me those examples proudly as reference...

    Automation challenges

    We do believe in automation but there are some challenges and things we need to accept when automatizing:

    • manual trading with experience will very often outperform a trading bot

    I know the whole internet, your neighbors and their mothers telling you otherwise
    Yeah bro, it removes the emotions from trading, it's like printing money seamlessly bro.
    True until 1 big losing trade and then the ignorants whine and cry.

    • as a trading bot is often based on best average TP/SL and rarely adapted to the current (and always constantly changing) market conditions.

    • bots are dumb and the software running those bots are dumber

    ๐Ÿ”ธ A dumb bot configured in a dumb way will do dumb square trades for you

    Who are we going to blame when the signal is on your chart but the order isn't filled for some stupid network error reason.
    The third-party doesn't care, the broker cares even less... everyone got their fees in the story but you.

    But there are some hopes

    1) bots MUST be piloted.
    Who the heck would let the bot activated 24/24 7/7 regardless of market conditions.

    A bot must be piloted otherwise it won't work
    Meaning, for knowing how to automatize one's trading.... a trader must already know how to trade.
    Those trying to automatize before knowing to trade will learn the hard way that their brilliant idea getting rich quick while chilling at the beach will get invalidated quickly

    2) An exceptional ROI for a 100% automated bot is around.... 30% per year.

    This is without leverage, and with normal market conditions.
    Most will argue with me every year that we are never within normal market conditions while they keep losing money using their bots.

    Expectations have to be realistic.

    The fairy tail ends now, welcome in the real world NEO - Morpheus/The Matrix

    3) When you make a 100% return on your capital, take the initial investment back to your bank account, and now you have free money and trading it with less stress.

    4) We made all of our frameworks compatible with automated third-parties like ProfitView/TradingConnector etc

    And even made some documentation on it because we're nice :)

    Configuring your framework alerts for automation


    Once again, we aren't against trading bots.

    ๐Ÿ”ธ We are against fairy taile 100% automated trading bots

    ๐Ÿ”ธ We don't care if your bot had great performance over the last weeks.
    We're very and honestly glad you're one of the exceptions invalidating this article.

    ๐Ÿ”ธ We're only saying that after 7 years of trading, having met hundreds of traders, we never heard a story where a trader came out in profit without piloting their trading bots in the long run.

    ๐Ÿ”ธ They all start by winning big, then the market conditions change, then the deep-learning/machine-learning wonderful engine ain't that magic anymore.
    Trust me I know the feeling ... we're only sharing a bit of our experience here

    This post was edited Jan 6, 2021 03:16PM

    Dave - Helping traders becoming the best version of themselves