Monday, 18 April 2011

Hybrid Trading - Today's Euro

I turned on Flo as usual today to work on the Euro. I then went to my ES chart to trade. I had a loser and then a winner on the ES when the alarm went off on the Euro that Flo had entered a trade. At the same time, Mrs EL called me away for something and I left my desk.

When I came back a few minutes later, Flo had made two nice profitable trades based upon her optimised stops and targets. But look at the trades. Both of them had a lot more potential in terms of profitability. Had I been trading hybrid, the trades, instead of making $425 per 3 contracts would have made $1125 per 3 contracts by my managing the trades' exits manually.

The entry was spot on, but because optimisation provides an "average" target that does not take into account all the context, adding discretion to exits enables me to take the high win rate entries to their greater potential. Because of Flo, I didn't miss the entry. Flo did take nice profits while I wasn't able to pay attention, but had I had my head fully in the game I would have been able to do a lot better. 

Hybrid Trading is the answer to many of today's trading requirements for many traders, both less experienced and expert. BTW, the plain bars are the result of coding some of the orderflow info to help me visually manage the hybrid trading - still testing this.


  1. Hi Tom

    The first trade on the left went pretty much in the opposite direction. After the entry (7-8 ticks away from the EMA33), it looked the market is going up, for at least a couple of bars. In case you would have managed this trade manually, would you have covered it and eventually entried again?


  2. mb, I hope that I would not have been faked out as the market was clearly in a downtrend and a break of both EMAs must result in a pullback that would give a chance to get out if needed. But in the heat of battle, who knows.