Forex Futures Trading

Posts Tagged ‘research’

ES Emini Trading Day: how far to go with automation

In recent years there has been a growing trend towards systems "Black box" trading, computers are programmed to trade the signals generated by the market position and price and automatically execute and exit trades. In using these systems, the user sits back and does all the work computer and the user looks at your account every night to see how he has done. Many of these systems claim fantastic rates of return by using your system. These systems simply must be considered trading bots.

This is in sharp contrast to another group of traders who insist that no oscillators or time indicators are necessary for trade and price action is the method main trades in and out. Chart formations and movement of the market is the main variable in this trade, and some traders say some pretty yields impressive.

The third type of operator uses the observed price movement over a set of oscillators and momentum indicators to reinforce their decisions investment. From the beginning, I have to admit that I fall into this category, as I feel as much information at their disposal the best decision of their trade. In the end, I have observed some traders may have two or three screens of the oscillators used to determine their trades, and I thought to myself, "How hell can anyone possibly keep track of all the different indicators? "

For example, I am an instrument rated pilot and flight IFR (zero visibility) situations we taught a scanning technique for seven indicators simultaneously. This technique is practiced in terms of y is not small ability to develop. Of course, the trick is to move the eyes from one instrument to another without stopping for a period of time in a single instrument, so that exploration instrument panel to detect any abnormalities that may arise. I can scan seven instruments, but I think I have the ability to make many more, so I have serious doubt that these multiple display indicators are of much value to a dealer, because it is virtually impossible to interpret the results at the same time.

So I'm going to pull the display of multiple observers of this discussion as its methodology is nothing but an exaggeration.

The robots, however, are a different story. In fact, I bought one of the most famous robots currency just to see how it worked and whether I could find the formulas used to buy and sell. Unfortunately, I have never understood is the buy and sell signals completely. Moreover, the bot does not do as advertised. To be sure, made some good operations and actually ended up with my account in black at the end of the month, but the results were less than impressive. I read the messages shown in scientific chat and bulletin boards that claim a similar experience to mine. I shut the robot down and have not used it since then, but it was an interesting experiment to carry out and may be activated backup software at some point and give him another chance.

Hedge funds are notorious users automated trading systems over the years, and there has been no little discussion as to whether they are good for the market, as opposed to harm. In times of turmoil markets, there are regulations on New York Stock Exchange to require hedge funds and institutional traders to make an automatic trading activity. No doubt in my mind that the robots provide a degree of volatility in the market that would not be there if not used. ES Emini contract is beginning to have a larger number of robots in use, and this may explain some of the absolutely irrational behavior of price action you see on the chart from time to time. (I note that the views is mine alone, not based on science, but of observation)

The share price alone children, who do not use indicators and bots to hate, are another thing all together. Experience has taught me that it is quite possible that trade in markets on the stock price alone, although it is my opinion that you lose a little accuracy and precision in the trade when it intentionally excludes useful information. This only makes sense to some extent, the more information it has at its disposal to give you a better view of what the market is doing, it can be difficult to discern in situations that are extremely chaotic. Anyway, I will give the boys the price action that corresponds to them, they are able to make money trading chart formations and the price action, but I think they are missing the boat.

As for me, I prefer to use four price momentum and oscillators and graphic studio for trade. This has produced best results in my personal business for more than a decade, and am often able to discern trends in the market price of kids not only can still be seen. As for the robots, I have no idea what they are seeing, and that alone worries me. I prefer my future into my own hands, not a machine.

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