Friday, 3 February 2012

How I run my Trading Today

When I started this blog in October 2009, a father teaching his daughter how to trade, I was very much a discretionary trader.

I had worked with automated trading in the past but had rejected it due to the fact that I had learned to trade so profitably as a discretionary trader that the performances of the algos I created, did not come close to mine.

Time marched on, technology evolved, my methodologies matured and my geek IT specialist daughter, who became CP as a discretionary trader,said that we should try algo.

So we did.

Firstly, the technology developments made algo trading a whole new ball game. While an algo still does not do as well as I do as a discretionary trader, lots of other benefits appeared:
  • I catch trades on any market that is active
  • I diversify so if there is a drawdown in one market, another can be profitable
  • I don't have to trade big size on just one market
  • I don't have to sit there all day waiting for trades
and the list goes on.

I now trade a few hours a day and let FloBots carry the load about 14 hours a day, increasing to 24 hours a day shortly.  I have basically diversified myself.  There are traders who have realised that they can overcome a lot of their own issues by going algo and putting their smarts into the creation and management of an algo. Others use an algo just to test their discretionary trading ideas. One size definitely doesn't fit all but it seems to me that if a trader is not taking advantage of the technology available today, he is definitely missing a lot.

This morning, London was quiet ahead of the monthly jobs report. The stock market popped on the report.

But I was in the "Oil bidness". Trading commodities such as oil and even markets such as beanz (Soya Beans - one of the original Chicago markets along with Live and Feeder Cattle) may be making more money recently than the financials. A trader can't be locked to one market as we were in the pit. The advantage of being upstairs is that we can trade what is moving.

Light Crude traded OK and I had some nice trades. Pic is below.

No comments:

Post a Comment