Tuesday, 17 July 2012

Flo Missed It

The pic below shows Flo in action trading the Euro futures. As you can see from the trades marked, she does quite well. High win rate and low draw down. But she does miss what I consider valid trading pictures. That is the nature of algos. There is no discretion in an algo. Either the picture exactly fits or it doesn't. In the design, I find what works best most of the time. And it works pretty good.

However, I trade a couple of hours a day as a discretionary trader and I can take trades that I see. Just because it does not meet Flo's criteria doesn't mean it is not a good trade. The last trade on the pic that I marked with the UP arrow is one such trade. The trade was the third in the sequence and was easily identified.

Discretionary trading is a different business to trading with an algo but I do both at the same time.

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