Advantages and disadvantages of an automatic vehicle - page 2
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That's fine. I see a deep knowledge of price formation.
I am interested in time, and that is where price changes come from.
It is precisely time that means nothing in the market. Earnings occur when there is a change on the price axis, not on the time axis. So it's better to evaluate the level at a certain price rather than the number of bars the price has spent at this level. In other words, earnings are on the Y-axis and not on the X-axis, where X is a time scale.
Agreed, if you don't get into the finer nuances.
Namely, it all comes down to the range of time to analyse.
What do you suggest? How do you determine the time scale of the FA of a news item?
News from the calendar is not suitable for FA. You need to look for instruments with clear and valid recurring seasonal factors.
For example Turkish Lira, the index rises during the holiday season:
The same patterns repeated from year to year are also present in other instruments.
advantages:
- limit to the complexity of the trading algorithm (some trading algorithms cannot be executed manually)
- potential ability to incorporate all factors affecting the behavior of prices
- speed of execution of calculations
- potentially higher competitiveness (with a competent approach)
- easy to evaluate the quality of the trading system
- clearly elaborated trading algorithm
- extensive backtests from the beginning of time and for any instrument with any accuracy (it is almost impossible to do it by hand)
- stability of decision-making
- decision making speed
- higher reliability and stability than manual trading
- the ability to trade all the available instruments simultaneously around the clock with a second control
- minimization of the human factor
disadvantages:
- program crashes are possible
- server crashes
- if the program crashes, it may be impossible to maintain positions in the manual mode
- need to write code
- the need for long work on the trading algorithm/theory (minus for lovers of free money)
It is precisely time in the market that means nothing. Earnings are made on the price axis, not on the time axis. So it is better to evaluate a level at a specific price rather than the number of bars that price has spent at that level. In other words, profit is obtained on the Y-axis and not on the X-axis where X is a time scale.
I will never agree with you there.
The bigger the time range, the bigger the difference in price can be.
You will never make a 1000pp profit on a single tick unless you already have an order working in that direction.
I will never agree with you there.
The bigger the time range, the bigger the difference in price can be.
You will never make a 1000pp profit on a single tick unless you have an order already running in that direction.
You are not making money on the time scale but on the price scale. A thin market can last as long as you like in a thread kotir will stretch out and sit like that for a month two...... That's why it's the change in price, not time, that matters for earning. The exception is binary options, but I don't consider them an instrument, although you can make money there too.... IMHO!!!!
advantages:
- limit to the complexity of the trading algorithm (some trading algorithms cannot be executed manually)
- potential ability to incorporate all factors affecting the behavior of prices
- speed of execution of calculations
- potentially higher competitiveness (with a competent approach)
- easy to evaluate the quality of the trading system
- clearly elaborated trading algorithm
- extensive backtests from the beginning of time and for any instrument with any accuracy (it is almost impossible to do it by hand)
- stability of decision-making
- decision making speed
- higher reliability and stability than manual trading
- the ability to trade all the available instruments simultaneously around the clock with round-the-clock control
- minimization of the human factor
disadvantages:
- program crashes are possible
- server crashes
- if the program crashes, it may be impossible to maintain positions in the manual mode
- need to write code
- need for a long time to work on the trading algorithm / theory (minus for freeloaders).
advantages:
- a limit to the complexity of the trading algorithm (some trading algorithms cannot be done manually)
- potential ability to build in all factors affecting price behavior
- calculation speed
- potentially higher competitiveness (with a competent approach)
- easy to evaluate the quality of the trading system
- clearly elaborated trading algorithm
- extensive backtests from the beginning of time and for any instrument with any accuracy (it is almost impossible to do it by hand)
- stability of decision-making
- decision making speed
- higher reliability and stability than manual trading
- the ability to trade all the available instruments simultaneously around the clock with round-the-clock control
- minimization of the human factor
disadvantages:
- program crashes are possible
- server crashes
- if the program crashes, it may be impossible to maintain positions in the manual mode
- need to write code
- the need for a long work on the trading algorithm / theory (minus for lovers of free money).
Yes. It's just difficult to add something else to this list. But I think people still have secrets up their sleeve.
ATS is the only way to effectively exploit a pattern because a pattern is an algorithm, by definition. In this sense, automatic trading has no disadvantages.
A system, i.e. a pattern (any pattern), has only one disadvantage - anything can happen in the future, including things that you haven't foreseen.
You do not earn on a time scale but on a price scale. A thin market can last as long as you like in a thread kotir will stretch out and sit like that for a month or two...... That's why price changes, not time, are important for earning. The exception is binary options, but I don't consider them as a tool, although you can make money there too.... IMHO!!!!
Price change is a combination of price and time. No matter how briefly it happens.
So for the record.
It's the only place where you can make money. In time.
ATS is the only way to effectively exploit a pattern because a pattern is an algorithm, by definition. In this sense, automatic trading has no disadvantages.
A system, i.e. a pattern (any pattern), has only one disadvantage - anything can happen in the future, including things that you have not foreseen.
Can one foresee everything? I think that it is impossible.
I want to somehow reduce the number of errors in decision making in the algorithm.
Observations of price movements suggest that FA is more suitable for long term trading and TA narrows the horizon.
The strength lies in the FA, that's for sure.
What are the ways to take FA into account programmatically?
Vladimir, there is FA theory, there are formulas, but (!!!) the initial data for calculation either do not exist at all, or there are, but not in full,
unfortunately