AUTO TRADING : EXPERIENCE AND LESSONS
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Aim is to Share Experience and lessons in Auto Trade System with intention to improve and invite Suggestions.
LESSON 1
a. Use Tick Time Frame as it removes possibilities of reprinting thereby giving absolute values for system to take decision.
b. Renko Charts may suit the system better.
c. Backtesting may not be possible as there is no Tick Timeframe available and Tick data is only available for last 6 days.
d. Backtesting on 1 min timeframe is not same as or close to Tick timeframe testing.
e. Intraday trading may be done free of emotions using auto trade.
f. System building using Basic patterns and indicators can work beautiful well.
g. Futures give better results than options. Stocks not tried yet.Lesson 2
a. We can use Two separate Ultra scanner one each for Long and Short Trades ( for Fut) linked to same auto scanner
b. Both Ultra scanner should have separate Strategy Id.
c. Auto trade engine can have two separate strategy id on same Group.
d. If want to experience trade triggering without actually taking trade then keep position size high in auto trade engine so that trade is triggered and logged with buzzer but is rejected.
e. If trade is triggered automatically and one wants to book profit before exit is triggered then it can be done manually. But then remember to clear trade logs in auto trade engine otherwise it will keep showing open position and fresh position
will not be taken if triggered.LESSON 3
a. There are instances of multiple trades getting initiated due to some bugs rt now. It has been shared with definedge with logs to examine. Meanwhile be alert when the brick is forming near some indicator that you have chosen. If price sticks around that Indicator then I have experienced multiple trades getting triggered in fraction of time.
b. Build a system in system builder to avoid multiple trades as cost of Taxes and Charges are really high. Or use a bit higher qty to optimize on charges. Definedge though settles brokerage with the wallet but that facility can be enjoyed till you have points in wallet.
c. Keep booking profits in Intraday trades. Preferable to trade in multiple of two lots and book one at 1R as advised by AP Sir and trail the balance.
d. If trading Nifty Fut then I have observed that it can give you 10 to 20 points in a move after entry. So booking some at 10 to 20 points gain may be useful.
e. Camarilla levels ( which can also be applied on Renko) are a great help to determine the target.
f. Intra VWAP is not plotting on Renko.
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What system are you folowing for auto trades?
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Testing Renko based on Nifty Fut..... Long entry - one back , two back, swing and zig zag brk out above VWAP of different periods...... exit on crossing below VWAP....... Short entry is opposite of this
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and using Camarilla levels for booking profits on a trendy move
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Thank you
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@Anurag Rathore What is the brick size and time period?
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I am testing on .02 percent and tick time period
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@Anurag Rathore Wonderful post. It contains a number of valuable takeaways for readers.
You can overcome the issue of emotional trading by creating a strategy objective and converting it into an auto-trade. However, making a strategy completely objective is difficult.
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You need to have a clear plan
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Tool must be efficient
We are trying to address the second problem. Defining a strategy is extremely simple in TradePoint. We will continue to improve the execution and auto trade engine.
You have provided some excellent insights regarding objective trading. Auto trading using P&F and Renko charts is a wonderful trading technique.
We wish to provide backtesting on tick timeframe. The data is huge, but we are exploring ways to deal with it. The tick timeframe eliminates all problems associated with the impact cost of trading.
Nevertheless, it is possible to execute it in one minute, in which case impact costs are at least minimised.
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Thank You Mr Prashant for kind words.....
I will keep posting whatever I experience with an aim to help your team make auto trading in definedge productive and efficient. I believe that objective nature of P&F and Renko charts can be a game changer in auto trading. -
The issue in lesson 3 of multiple trades have been resolved by adding one more condition in exit criteria... Thanks to Mr Prashant.
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@Anurag Rathore
Hi Anurag,If you can, kindly share your observation on ..
Whether, The multiple order firing (read ... Multiple Triggers), was because of some error/mistake in strategy.
OR any other, e.g. "System is not considering Open Positions in Broker Acct" or "subsequent Order firing before System could do reconciliation with Open Positions" or Any other.
I am in progress to setup the Auto Trading. These inputs will help us/others immensely.
Regards
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No it was due to condition in exit system... added one more condition in exit which resolved the issue. Please refer to Mr Prashant post in telegram group
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Also please share your system and logic which you are trying.... I will also post my setup once I am through with the testing and confident about it...
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Thanks for reply.
Yes Sure. I will share my experience here.
Currently exploring "how to setup rules for my trading method ANd noting down in Excel." It will be based on Candlesticks Charting method. Wont be using Renko/P&F to start with.
To start with, it will be more sort of Auto - Execution of trades (i.e. entry and exit rules defined through Tradepoint). For Analysis and selection of Scripts and Trading Strategy will be using existing (Manual) method followed. So in short looking to set-up a Semi-automatic Algo Trading. After a while, If it is working fine; then will consider a Fully Automatic/auto executed setup using Tradepoint.
