Monday, 10 January 2011

Expert Systems

It has long been known that well designed processes and procedures allow less experienced people to carry out more complex jobs.

Taking this into our world, using the computer in real time to instantly identify the possible setups to trade has merit for many traders. The concept of hybrid trading (HT) - auto entry with manual trade acceptance and management- in which the auto trader, such as my FloBot, automatically initiates trades certainly fits with this idea.

HT has benefits for both the expert and beginner trader. For the expert, it allows the trading of more markets simultaneously and requires a lower level of constant concentration - certainly something for those of us approaching old farthood should think about. For beginning traders it brings in even more benefits: having a trading plan built into the algo and its management policies, having a "mentor" looking over their shoulder identifying high percentage trading opportunities, an enforced discipline and several other pluses, all resulting in the beginner achieving consistent profitability more quickly.

I've got 5 markets under HT at the moment and the results are very promising. I'll share experiences in the blog of both the day trading as well as the longer term trades. They are all based on the same methodology you have seen in the blog for the last 15 months. That doesn't mean I trade them robotically.

Today at about 8.30am NY time  I tweeted the Gap trade with a reminder to watch the zipper: $ES_F Gap trade possible but beware MP zipper dn to 1257.75 You can see in the video how I traded it.


  1. Thanks for your tweet. I did manage to ride the zipper down ... but got long later in the move back up than shown in the video. Still, it was a good move in both directions. Your tweet certainly confirmed my analysis.

  2. bakrob99, glad you traded it both directions. Unless you envision it, its hard to do that.