Friday, 12 August 2011

What To Expect

I have had lots of emails about the upcoming online workshop starting on November 5. All of you who have asked me to hold a place for you, while PayPal gets its act together, should have received an email that holds your place for you. The signup page and further info and curriculum should be posted on Sunday night.

Now to answer some of the questions:
The workshop is a traders' workshop and we will be breaking down the whole EL methodology into its components so that we can see what logic rules need to be applied for the algo to trade effectively.

In my development of FloBot, I have had to develop a number of indicators that identify the turning points in the market, the strength of trends, the cyclicality - basically, the tracking of the order flow. There are five particular new indicators that have proven to be very useful. You have seen two of them on the blog.

I WILL BE SHARING ALL THIS INFORMATION AND CODE WITH PARTICIPANTS. A non-disclosure agreement will be required to protect the intellectual property but it will be a true Show and Tell and I won't hold anything back. You won't need to be a programmer, as most of the platforms have a psudo language that can be used. For example, MarketDelta and RTL, TradeStation and MultiCharts has Easylanguage and so on.

I will be teaching the latest EL techniques. Nothing has changed in the methodology, but the way I can teach you the identification of the order flow has improved since I began teaching it. The new indicators also help people see this more clearly. Converting this into algos then makes the decision making process more consistent and provides instant trade recognition that can lead to instant trade execution if you want an algo to do that for you.

Computers are literal and cannot make subjective judgements like a trader can. Therefore, we need to be a bit clever in the way we ask them to identify trading pictures if we want something robust and successful.

Today's trading continued its volatility. Daily swings in the Dow of 400 points the last 4 days is representative of this volatility. Increasing the range bar size will get rid of some of the noise, but stops will need to be further away as should targets. Reducing size is also necessary if you also want to maintain your risk profile. The increased volatility produces more trades so that daily profitability can in fact increase. So can losses if I lose discipline. I had a tough morning on Wednesday until I adjusted. Flo can handle these faster markets better than I can, I must admit. I'm slower than I used to be and Flo corrects this deficiency.

First trade was fading the overbought. The target of the last trade that Flo found was in the same area.


  1. Do you have any non optimized results you can post from the last year or within the last 6 months. $5,000 is still a lot of beans.


  2. Anon 20:29, Just buying an algo, turning it on and waiting for the cheques to arrive during the next 5 years is an impossible dream. Markets' volatility changes and the workshop is to teach you how to both create algos and how to keep them tuned to the market without curve fitting. It's all about the trade picture. It's still work but the work is in creation and testing rather than having to be smart every day. Have a look at the video I'm posting this week-end.

  3. This is about teaching you to fish forever, not just giving you one meal.

  4. Dear EL,

    I never assumed that it was write a check for $5K and hit the islands. I was asking about performance results.


  5. Anon, I'll post some past performsnce results in a more detailed post, probably on Monday. This is a large subject as results are different depending on what is the most important aspect for you - overall profitability or win rate or drawdown or something else. In configuring an algo I build it based on what I'm trying to avoid. This is one of the important parts of the workshop.