Progress 6 – Live Testing Continues

This weekly trade review is part 6 of my progress on rebuilding my trading system to be more systematic and semi-automated.

I am currently working on the auto entry, with discretionary context and discretionary buy/sell areas.

The plan for this week was to test the system live with 1 lots.

The review this week be short, as there is not much to report.

How did it go?

The testing of 1 lots on the system is complete. No major problems to report. The system sends the orders timely and at the correct price.

I added a setting where the price sent was at a limit order but based on a micro pullback, which works well on fades on strong trends. This is simple a setting that sends the order at the close price plus 2 ticks for shorts and minus 2 ticks for longs. A problem is that in fast moving markets it sometimes gets confused as to what close I am preferring to. As the order gets sent before the close has registered on the platform. So I am changing that to experiment with either the last traded price or the bid/ask price plus / minus 2 ticks.

Next steps

Update the Risk Plan for moving to 2 lots testing. No major changes to current plan but how I manage the trades and stops, now that the system is using 2 lots.

To test the system using 2 lots for a minimum of 20 trades.

I have updated the system so that the triggers settings could be updated automatically on market type, i.e. low volume, normal and high volume.

When I say automatically, currently I choose what type of market it is, and then this sends the settings to the triggers.

At the moment, they are still at the current settings. Before using this change, I need to do the following.

Test the current system for a fair sample to gather data. So, that when this is implemented, I can compare the low and high volume settings to the normal settings to see how each performs.

I need to compile data in what constitutes the different volume regimes.

Then I need to research and back test the different settings for these regimes before testing for real.

Before that I would like to implement a better system for buy and sell areas, at the moment I have one buy and sell area. I would like to implement a system that has more than one buy and sell area.

As Friday was a good example, with a strong up trend in place, there was a couple of choices for fades. The auto trigger got me in, and I had only just moved the sell line to the next area, when there was a spike taking me out, but the auto trigger which got me back in. If I had been a bit slow moving the line, then I would have been stopped out and with no entry into the second trade. So, would have missed a good fade opportunity.

weekly trade review

Points to note going forward.

I have plenty of ideas on how to improve the auto triggers, but I can see that even just adding the third type of entry trigger, this adds more decision making to the system and I can end up making it a lot more complicated with system creep.

To this extent, I am only trailing the third entry type of trigger and will decide on whether I keep it over the next couple of weeks.

And all further changes must be tested and then used to replace rather add to the system.

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