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Anyone else here use algos to trade? Pic related is my audnzd

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audnzd.png
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Anyone else here use algos to trade?

Pic related is my audnzd 3m algo. 32 days in and not doing too bad at all.

Experiences? Tips? Disaster stories?

My current algo uses conditions based upon momentum and ma and patiently awaiting the first disaster that takes me back to the drawing board.
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>>1740597

What are it's back-testing results? Also did you do a walk forward analysis?
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>>1740625
Back testing results were more around the 60% winners mark going back to July 16.

Not sure what forward analysis is though. I'm a bit noob at this... I don't really use indicators etc when trading so I was always skeptical of algos. But I've came round to the idea recently and wish I had been doing this all along haha.

Human emotions truly are a traders greatest weakness it seems... Don't get me wrong, I've made more in a month manually trading than this. But on a 3m chart? That territory is for robots only lol.
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>>1740648

I'm interested in the area but have never actually put money into it.

It seems the hardest part of making an algorithm is verifying that it is actually profitable and not just producing biased results due to 'good luck' in the testing period.

This website has a few good articles on the topic and how it can be minimized.

http://www.financial-hacker.com/

>Human emotions truly are a traders greatest weakness it seems

I agree. If you automate trading one advantage is that you can implement strategies from a purely analytical standpoint and remove emotions like fear or greed that clouds the view of a normal trader.
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>>1740597
Yes I'm sure your algorithms are better than the math PhD grads from MIT on Wall Street
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>>1740674
I didn't say it was?

This algorithm is simply designed to take multiple small trades per day on a 3 minute time scale based mainly on momentum.

Don't plan on competing with PhD grads on wall street... Picking up a few pips while the markets do their thing is all I'm hoping for :)
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>>1740672
Thanks dude, I'll have a read of that when I get the chance!
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>>1740674
They don't even compete on the same scale.
If you can get what you are doing manually automated, and if it got you good results, why not?

>>1740597
I had the same idea, but checked what a lot of trading bot available on internet where doing. And only did virtual account test and did not throw actual money into it. The results wasn't good. Like +50% in a month, and then a big loss of half the account total. so easily -25%

They almost always use a martingale.
It's like everybody is combining the same signals to enter, but knowing when you should exit a bad trade is the key point to risk management and make it profitable... what's yours?
Do you just set a stop loss for each order? or try a bit to turn a bad trade into a good one for a while?

>>1740672
thanks for the link
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>>1740733
I'm not sure what martingale is, I'm bad with the terms people use. Hopefully I'm not doing whatever that is haha.

For manual exiting trades? I always just place a stop loss above the point that my reason for taking the trade in the first place would become invalid. Like if I trade short on a double top, I put the stop loss etc.

For this algo it literally just stops a long position when it enters a short position and vice versa. It has an open trade literally all the time just riding the momentum
>>
>>1740733
>>1740737
Nevermind I just googled it.

Wow martingale sounds like a horrible idea.

I remember I tried that on blackjack once. It went horribly wrong.
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>>1740740
It is a terrible idea. It's a fake always winning theory.
It's actually a theoretical always winning theory, if you have infinite money and infinite time, which do not even earn you a lot of money for the risk taken. So in reality, it's not.

>>1740737
Ok I see. You don't try to rationalize that a small trend analysis error could lead to a swing and make it a good guess. You just ride the momentum and close any losing order.
Do you still try to open order if the momentum is weak?
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