Monday, 22 November 2010

The Father of Algos?

It's the Comice pear season now. I absolutely love Comice pears. I remember that I first ate one when I lived in the U.S in the mid 1980's. I had been helping Bob Pardo with his autotrading program. I was doing some testing, if I remember rightly. Bob was the first person to sell a commercial autotrading program where the user could optimise. I really can't remember the details and whether I was of much use at the time, but Bob was kind enough to send me a fruit basket and it was full of Comice pears. I've loved them ever since. They are originally French, I think, and I'm now buying them in France, which makes them taste especially good.

Autotrading has come a long way since those early Bob Pardo days. Bob has since gone on to write a book about autotrading: here.

When looking up that reference, I see Bob has written another - a rewrite of the first. Look here. I haven't yet read this second one (but I will), but knowing the first one and reading the contents list for the second one, I can say that it would benefit anyone wanting to create an algo.

Today's trading in the ES RTH was great. All the people who took my course by DVD or (w)(s)eminar will recognise the pictures. It all started with the Gap trade and then just got better. The reversal at the EMA resistance trade hit the Fib target like an olympic champion archer hitting the bulls eye. There was a reload option on the way as well, Great stuff!!

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5 comments:

  1. Anonymous22 November 2010 at 20:12

    By reading through your website it looks like you almost exclusively trade pullbacks trying to get in close to the top/bottom. Just wondering if you ever trade breakouts above support/resistance. I’ve been researching how markets usually make a sentiment high/low on the CCI, then a pullback, then a price high/low with a less extreme CCI reading. In certain markets that trend really well (currencies and some commodities), that final break is usually very reliable for a quick scalp of one range bar. Not as profitable as getting in on the pullback, but very reliable…or at least thus far in my testing.

    ReplyDelete
  2. Anonymous22 November 2010 at 21:26

    Hi EL,

    Have you ever considered using two time frames instead of one? By time frames, I mean two range bar sizes. Wouldn't this allow you to pinpoint your entries more precisely? Many thanks in advance!

    Regards,
    Samer

    ReplyDelete
  3. Electronic Local23 November 2010 at 03:11

    Anon 20:12, It's all about high win rate. I have over a dozen pictures I trade, for both long and short. I'm continually looking and testing to add to them. If you find a picture that meets your criteria and back testing and forward walking validates it, GREAT!
    Samer, 1 chart, 1 timeframe is more than enough for me. I keep it simple. I trade the trend of just one chart as it works for me.

    ReplyDelete
  4. Severino23 November 2010 at 04:39

    Hello Boss,

    Would of liked to have listened in on the self talk in deciding to use the 1.5 range bar.

    I do believe that is the first time I have seen
    you change it.

    Thanks,

    Rino

    ReplyDelete
  5. Electronic Local23 November 2010 at 05:02

    Hi Rino. the 1.5 was working through the ES chop a bit better and Flo likes it too.

    ReplyDelete

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