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In the end, whether you are automated or not, there is still the human element involved - the human element of EMOTIONS. |
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I agree, but there emotions more or less can be recognised also by software, for instance "key-reversals". If you test some of these and for instance combine it with lets say near "psychological" levels and ad of your choise "salt and pepper" you can come up with a strategy that with backtests can show you that: it worth trading this share using this strategy ... so why not put it on automatic mode ... with money management in view all the time ... This way you can concentrate on other aspects of the market that are more "emotional".
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The argument that automation removes that is simply not true. At the end of the day, when you are reviewing your statement, human emotions can get the best of you whether automated or not. A human will decide when to turn the program on or off and therefore, emotions will drive that decision sooner or later. |
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I agree, should be supervised and turned on or off if required, but ... if for instance backtest shows that one of your strategies
works on a share ... you automate it and ... let's say you make a rule to stop trading that day if your losses reashed a level ... and start again next day ... results of the backtest makes you go "deaper" in winnig ... and of course you freeze it ... on an other rule u make ... for example: 3 consecutive times stopped because of loss limit ...
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It's easy while making money. As soon as there is a threat of drawdown however, things change. I believe that being in the market daily and watching the charts yourself gives you an advantage (no matter how slight) over the machine in seeing what is out there and how things are reacting. |
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Agree here to, you sould wach charts all the time and make modifications on your existing strategies ... or make new ones ... following the market ...
Summary: you can save time and money with automated trading in my oppinion ... true ... it needs a charting package that is flexible enough for all your thoughts ... and has reasonable fees ... do you know one for chance?