Monday, 12 December 2011

Hybrid Versus Fully Auto

As we start the last week before the end of year Holidays, I'm thinking a lot of how to manage myself next year. I'm moving more and more towards automation and I expect that to continue next year.

Next year will see more of a portfolio methodology in my fully automated trading. I'll be setting up different algos on different markets with proper money management to make the portfolio of futures markets trade optimally and be balanced according to risk. I'll be sharing what I'm doing with money management, as I think that this has always been an important part of trading.

The chart below is a 3.5 box Renko on the DAX. The stops and targets are as Flo puts them out. When I trade this algo, I get all the entries, but quickly move my stops and targets to maximise my profitability. If one of the Flo entered trades does not get stopped because I moved the stop away, Flo will not look for any subsequent entry signals in the same direction until that particular open trade has been closed. This can have a double benefit on profitability.

For me, I'll keep hybrid trading along with my fully autotrading as I like to trade. However, using a fully auto portfolio of futures trading is where the future is. More about this later.


  1. Have you ever utilized an automated approach to this methodology on a larger time frame? I could see this working well swing trading with a daily chart interval + small initial position size while building position on retracements to EMA's. You could compliment/hedge swing position with intra-day hybrid trading. Just a thought.

  2. EL, How many "context day types" do you have? Are you still using different flo's for different context or just different markets?

  3. Anon 16:31, Yes, but trading options against the daily signals.
    Anon 17:15. I mostly have a "normal" and a "trend day" algo for each market.

  4. jenrique42
    I wonder if you know me6 e7 and, if they have sufficient liquidity to Trade, the e7 each pip is worth me6 6.5 $ and its value is $ 1.25, which to begin trader would not be bad
    I would advise you start with these products?

    Quisiera saber si usted conoce el e7 y el me6, si tienen la suficiente liquidez para tradearlo, el e7 cada pipo vale 6.5$ y el me6 su valor es de 1.25$, que para empezar a tradear no estaria nada mal
    Aconsejaria usted empezar con estos productos?

  5. jenrique42, I am only trading the 6E (Euro) at the moment. It has great volatility which is what I want.

  6. jenrique42
    the 7E and M6E are also products of the euro, but the value of each tick is smaller, is the only difference with the 6E, I was wrong to put the product tickert

    el 7E y el M6E tambien son productos derivados del euro, pero el valor de cada ticks es menor, es la unica diferencia con el 6E, me equivoque al poner el tickert de los productos