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how can i stop losing at automated trading

Trader Question:

i did not get any good results performance on few strategy i tried ( Macd cross over , Dynamic trend trader , triple cross over trend, scalp+trend auto signal etc .)  is it possible , one of your support team member check it over using remote tools (e.g. team viewer etc ) and find out why i am getting lots of loss trades.. i only managed to load 5 days of data.

MicroTrends Answer:

Our support model for free provides help desk assistance to get installed but not for reasons such as i want trading advice – we can provide feature assistance only. But we can provide information on an approach that is what i found best suited for my success as below.

Support Model & Policy

There can be many reasons for winning or losing results – but your data sample of 5 days is not valid or your the technique – try atleast on 90days – better 5 years for day trading as explained below…  Legally – We are unable to advise on why you are losing  and say “do this to win”.  We can only advise on an approach and features assistance. You may or may not have optimized the system or selected a viable instrument timeseries and parameter sets. You are using recency bias to govern your trading decisions instead of a professional methodology. Therefore you are 99% doomed to fail.    The common problem with  most traders who lose is that they are doing it wrong. Looking at a winning run and then saying “ok this is the system… no this is the system and going in circles chasing what looks to be the one – without following a systematic methodology for testing and pairing automated systems to their psychology and capital”

That’s how the majority of retail traders behave…even ones who are doing it for 20 years.. I’ve been trading fore 20 years i know everything i bought every piece of software under the sun and i still cant get a system that is consistent on a weekly basis….. I see traders going in circles for  years jumping from one system to another, never taking the time to do it properly.

The consistency starts inside the trader, not the system. blame it all on the system. live in denial, and go from 1 series of wins to loses like an addicted  gambler who still insists they are a winner even though they lost their family money and house and live in the casino hotel with a credit.

All i can think is for some reason – retail traders think they are immune to the need to do it correctly…or dont understand the methods, or even in some cases the approaches professionals use are for fools and surplus to requirement.. i was told by one such newbie  who had claimed to be a veteran trader making consistent money- “ha you need to stop thinking like a hedge fund and stop adding rocket science and complicating things a 2 week test is enough for any system…” it turned out they were lying to themselves and burning their money – they had lost about 50% of it futures and then lost 100% of their FX, so figure you might think there is a obvious reason to that expensive lesson if it were heeded it can be changed.

This person had no statistics, no approach, no database, unrealistic expectations given to them by a series of lucky wins when they started so they thought it was easy.. it’s simple not easy…  they were impatient, made a plan 1 week and over the weekend their memory reset and their focus to a new brilliant holy grail idea.. .because the last one had a drawdown so that cant be the one.

Or traders have crazy delusions that a 2K account is enough for trading with an automated futures trading system, it maybe ok for microlot Forex or CFDs-  or skillful cherry picked ultra managed trades maybe…  Personally i wouldn’t even bother trading futures until i got 20KUSD for 1 lot on a mini contract – 1% to 2% risk. If i don’t have the funds to trade guess what? im not going to throw 5K down the drain as i am so addicted and impatient, that is called gambling. much better to direct the money on investing in time and equipment and tools and measuring success of a diverse suite of systems, statistical evidence obtained and then the correct equity can be sought to trade it

So 99% of people  go in circles chewing up large sums of cash and buying dozens of systems from the frauds and crooks you will see a plethora of in various other places all over the internet… These people know that you are out there wanting financial freedom, they know how to sell you an image and a dream and tell you what you want to hear, they will rob you blind with no ethical dilemma. You are there as you cant do the time and the journey, so you need software to do it for you. You are a soft target, its like stealing candy from a baby. They will take advantage of your dreams and aspirations  and sell you something based on recency bias, instead of telling the truth and guiding you  and providing you with tools and an approach to try out without a financial penalty.

 The trick is to get a free trial and really dig in and test out a system and adopt a methodical approach at the outset. this is something i teach and provide on the platinum plan or – or can provide 1 to 1 tailor made courses…  but be warned:  traders want a short cut to wealth and freedom, they want to pull the lever and see the coins pour out.. they dont want to work and wait and try and not know the results of the scientific method and weeks/months ahead/years even in testing/paper trading.

So the majority of people have many false expectations, no trade plan, no stats, cant even use excel, are lazy and focused on the thrill – all the stuff that makes you a terrible trader.

Their trading delusions are based on recency bias. they never even step back to see the higher time frame, news sentiment of the era they are in, they are focused on each tick for and against them.. the market controlling their dreams and emotions…

So can  give you the best system? can we give you the best settings?

We can give you the winning system that made consistent wins in 2016/2017, likely and you wont have the capital, the knowledge and market ability to steer safely.. it will scare you to death, you will pull the plug. This is not a game where you can be given winning systems to use as you will make them lose…  you must find what works for you – so that your in depth experience of it will provide you with the answers you need. If i give you a winning system you will switch it off and call me an idiot at the first drawdown. why? you have no belief in it, you need to watch this for months, see the results of years of testing , each trade, each market bull, bear, sideways, low volume, high volume low and high volatility ranges.. you need to be an expert with the system , so you develop a first hand belief system – or you are better off giving your money to a professional fund manager and speaking to a registered adviser etc. as that is fully auto trading…

What can you tell about your system,…? -what is the worst drawdown? consecutive losers/ winners/ average loser, win ratio %, average risk reward, expectancy, profit to maximum drawdown, capital requirements. what market to use it on, when to use it.. when does it win,when does it lose. what time should it be used? what day, week, months? market phase – is the market good for it now, is the market phase a drawdown period?… should it have launch control, should it it be guided with interactive controls, can it be left for duration’s to trade by itself –  regardless of who is doing the trading monitoring is advised 24/7

We never know what system and instrument and setup will suit a trader, what the new traders want and some who should know better,  is 100% wins, no risk and a small account $500 to produce $200 daily each day 5 days per week….  what they need is a something very different and most of them will not see the light as they are blinded by gambling addiction in trading.

System selection, it all takes skill, time, data, systematic approach,data storage of information. all the things average Joe blow does not want to entertain.  They already got a job why the heck do they want another? Trading is simple why complicate it… says the gambler.

So as detailed we do not provide trading or investment advice, “best settings” or “the best system” for multiple reason etc We can only legally provide feature assistance to suit your trading system setup requirements and troubleshooting ,providing so called winning settings or best settings is not compliant and not what we offer.

The MicroTrends technology allows you to do a vast array of things, free for sim/demo – your efforts get you the results and its with your imagination and skill. In fact ideally we only want traders who are authentic in their effort and direction. You got to earn it and then you deserve it and it can work and it can take a long time so therefore we don’t charge a fee for sim/demo paper trading and testing- a trader can test and become a success or not and decide BS FREE no pressure, no clever marketing rubbish to take advantage of your financial dreams and aspirations and sell you something you might not find suitable and cant get a refund as the vendor has some small print to lock you you in.

There are many systems, but they use a common framework so all are similar, it takes a long time to learn and test but what you learnt on 1 system 90% is the same on all others. Some of the systems provide are used for trading by us and available  but we don’t setup the system with our last claimed winning settings and formula, and say here use this it wins.

1. We don’t want copy cat style trading, as that leads to slippage  etc.
2. It is not possible for person to expect to trade a system unless they do the work..
3. Compliance and regulation
4. Thieves in the NinjaTrader Ecosystem will try to reverse engineer it and sell it
5. You must work for it yourself  or you must pay for trading assistance and coaching.

So to cut a long story short only the traders who really work with it are successful with lots of patience and time and their secrets are safe as we don’t observe them, issue or re-issue what we know has worked for us or others if shared with us all in confidence. This way we can offer it free and ask for a live license payment and not have a large support overhead that would be nonviable to maintain. Also legally we don’t require regulation – we are software company only.  So no we wont help you in that way – it does nobody any favors at all. Why on earth should we give someone the secret of what works for us anyway ? We use our tech and you can too, find  a way. So you are welcome. So are free to use it and see if it can help you.

5 types of People who won’t do well at trading

  1. If you are someone impatient – this is not your path
  2. if you are unable to use a computer to any competent level  -this is not your choice
  3. If you want to make money make it now – this is not for you
  4. if you want to never lose – you need to be re-programmed
  5. if you are too tight and stingy to buy historical data – you are going to lose 100% guaranteed

With the MTDS7, MTu7 based strategies there are 100,000,000s of permutations and it can take a long time and a lot of dedication to get anywhere at all the bar is high and many will not make the grade.  In order to stand any chance at all trading you must get the in depth intimate knowledge from hands on experience in order to trade any system.  For this reason we have no time penalty – Fee demo/sim users are welcome to experiment and use the help resources for as long as they want to… forever.

Support Model
https://microtrends.co/support-help-center/support-policy/

Live Trading and Support Plans
https://microtrends.co/shop/

More in depth assistance is provided to paying traders on the Gold Plan or LifeTime licenses
https://microtrends.co/shop/lease-plans/gold-membership-fully-auto-trader-lease-plan/

Platinum plans members receive a 1 to 1 dedicated setup/management service to do all the “pit work” so you can be more hands on driving only and make decisions based on what is put in front./setup – so this can accelerate the process but traders make their own trading decisions and steer
https://microtrends.co/shop/lease-plans/platinum-membership-pro-auto-trader-lease-plan/

Getting Started Trading how to win at automated trading…
A Systematic process is required.
1. You would need to procure historical data – https://www.tickdata.com/product/historical-futures-data/ and select instruments you want to trade based on profit growth potential and system pairing.l
2. conduct meaningful tests say from Sept 2009 to Sept 2015/2016 –
3. Conduct Out of sample tests 2017 –
4. Walk forwards in realtime sim (Pre-production)

You would need to utilise a systematic methodology in order to manage the test/research and control the trading pre-production – create templates and log the dataseries/templates in a control document – then produce stats based on the timeseries/dataseries/ system template and instrument./ correlate the winning and losing phases to market phases, news. volume, volatility ranges – and understand why a system works and why it doesn’t and work out if its in a drawdown now in the out of sample or in pre-production, understand its capital requirement , drawdown, consecutive wins and losses, understand the premises and its availability for trading ,can you be there in attendance ,does the system suit your personality and psychology -capital… what is the win ratio, average win ,loser, average trade, what is the avg risk reward, PMD and can you even trade such a system? Be prepared to spend 3months or so on that phase.

AT Offerings Recap & Getting started
Please make sure you install the most recent installer – from the last few weeks – many have been updated in preparation for a larger update
Please watch this quick video for some info and pointers: https://microtrends.co/installing-microtrends-ninjatrader-downloads/
We will be making more articles and blogs each week so please stay in contact here and connect with us by social media, blog and or news letter weekly round up
https://microtrends.co/about/contact/

For the automated trading we have the MTu7 free for demo & Sim Testing
http://microtrends.co/ninjatrader-downloads#MTU7

Structured Learning Approach for Strategies MTu7
https://microtrends.zendesk.com/hc/en-us/articles/115001234303

>>>GET STARTED with MTDS7 – RECOMMENDED ROUTE
To begin with In fact i would start with this package MTDS7 – http://microtrends.co/ninjatrader-downloads#MTDS – i believer it can match what you want to do in terms of reversals and you may find you can have a coimpirmise of short targets and longer – 1 runner. there are many many templates for you to try out.
https://microtrends.zendesk.com/hc/en-us/articles/217164386-MTDS7-New-User-Orientation
download the bars and templates – look at the SDK Samples – MTDS SDK USAR – many templates and bar types for you to experiment with etc..

MTDS7 USAR Trader Modes:
https://s3.amazonaws.com/microtrends/docs/MTDS7+SDK+USAR+Trader+Modes.pdf
There is a section for templates, tools and bars downloads – They are called just Uni Renko or Super Renko

Automated trading
https://s3.amazonaws.com/microtrends/docs/MicroTrends+NinjaTrader+Approaches+and+Tools+for+Automated+Trading+success.pdf

Resources & TIPS
https://microtrends.zendesk.com/entries/65133859-Prepare-NinjaTrader-7-for-AutoTrading
https://microtrends.zendesk.com/hc/en-us/articles/115000299263-NinjaTrader-7-Hangs-after-clicking-the-Strategies-Menu-to-display-strategy-list

Some Suggested Reading
New Market Wizards
Way of the Turtle
Mechanical trading systems – Earik Beann
Mechanical Trading Systems – Pairing Trader Psychology with Technical Analysis – RICHARD L. WEISSMAN

Now you need to understand this also
http://www.vantharp.com/tharp-concepts/expectancy.asp
http://www.learningmarkets.com/determining-expectancy-in-your-trading/

Please let us know if this resolves your support request or if you have further questions on this matter or if we can close this ticket. For a new question or support request please send in a new support request to [email protected] or visit our help page here: http://microtrends.co/support-help-center

many thanks

Tom

MicroTrends Support
[email protected]
http://www.microtrends.co/support/

Tip! You can visit the help desk forum to see previous answered frequently asked questions:
https://microtrends.zendesk.com/hc/en-us/community/topics

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Disclaimer Trading & investment carry a high level of risk & MicroTrends® does not make any recommendations for buying or selling any financial instruments. We do not offer trading or investment advice. We are a software company & we only offer educational information on ways to use our sophisticated MicroTrends trading tools. It is up to our customers & other readers to make their own trading & investment decisions or to consult with a registered investment advisor.

Risk Disclosure Futures, CFDs & forex trading contains substantial risk & is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading & only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Please read the full risk disclosure here.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results & the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, & no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results & all which can adversely affect trading results.

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