22/12 – Two more good educational trading links + quick update

Two more days to go – and then finally it’s a big break – yay!

A couple of other interesting links i have come across in the last couple of days:

  • Ever heard of negative-skew trading strategies? – check out this link for an explanation of what it is.
  • www.tastytrade.com – this looks like a great site for learning about the intricacies of futures and options.  They have a tonne of videos – although it is meant to be targeted at retail traders, the material is certainly not elementary.  This website is sponsored/endorsed by the CME – so they can’t be too bad!   [I realized when I watched some of their youtube videos how much financial jargon and financial theory I have actually become rather comfortable and familiar with – nice!]

Right, it’s nearly the end of the year.  It’s unbelievable that I have spent an entire year trading the markets full-time – wow!   It’s been hard work, but also a lot of fun – though I gotta say that, all in all, I have had more stellar years than 2014 has been. As usual, I have compromised with some other parts of my life for the sake of trying to become successful and rich – will I ever learn to be wise?

Today I did another 3 hours of futures trading.  Traded around 80-90 eminis and lost a bit over 20 ticks.  Also worked all day in the office yesterday (yes, Sunday!) progressing with DAX testing.  I was meant to carry on with that today in the late afternoon but I was simply too exhausted, so I had a quick beer with a colleague instead.

How to brainstorm in central London

Two things I have been pondering over the last few days – (i) how to develop a profitable strategy for trading in the futures markets using my friend’s custom-developed platform, bearing in mind that the end goal for him is to develop a strategy that can be automated – i.e. traded by a robot.  (ii) Secondly I was trying to figure out why testing my trading technique in ForexTester2 is still somewhat amiss of live trading and have then tried to make things in the testing environment as identical as possible to the live trading conditions.

My technique for brainstorming answers for these is to take long walks along quiet parts of the Thames, whilst sipping on the occasional hot chocolate or mulled wine.  Then sometimes I stop, look out over the water, and note down ideas that come into my mind.  This actually works!

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2 Responses to 22/12 – Two more good educational trading links + quick update

  1. since our conversation on friday i have been thinking about why i was not able to translate testing success to consistant real success.

    one other thing about forex tester is it doesn’t incorporate a spread or slippage, which probably has an impact, i guess somewhere between 2-5% perhaps??

    the other thing (and probably my issue) – is that markets are not realtime so you cannot account for the environment of making a live decision, putting on the trade, watching it live, and also having money at stake.

    firstly, the way to counter live trades is to:
    1. on the platform, stop prices flashing so that you are not distracted by movements so much
    2. check in less regular intervals; im less keen on this as anything could happen….. perhaps a better way would be to ask…. is there some financial news that hit the wires that is adversely impacting my position, therefore i am wrong and i need to get out???? if not then i stay in. perhaps also putting in more decision trees (so if you think your setup should be proved valid within 20 minutes, you check every 5 mins, setup within 5 minutes, check every minute, 5 hours, check every hour – i think you get the point)…. so the setup becomes a decision tree as to whether you stay in or not.

    i don’t think staying in and gettting in/out of trades is a major problem for you…. it was for me – i’d get out too soon.

    the other thing i was thinking about regarding testing, my view is that yes it is useful to get a lot of trades done to explore if a system is even worth looking at. my thinking for you George is that you take a system you think might work, do a sample of 100-250 trades, which should not really take more than a couple of days…. then you live trade, trade really small. My point is to be live trading in the market as much as possible, even in small size, and perhaps fool yourself that losing £1 is as significant as losing £10,000

    the point is to trade and you cannot replicate or substitute live trading, it is the only way to get better, to sync with the markets and push yourself, your strategies and ideas – to improve.

    Like

  2. Pingback: 13/1: Pros and Cons of Testing prior to Live Trading | George's FX trading blog

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