Algo trading whilst I sleep and code. It’s here.

Today is a landmark day. It was the first day that I was completely happy to go to sleep at 10pm and let EnigmaSignal Autonomous Trade (TM) run the account for me. Of course, I had set the parameters. Low risk at $10 a pip. Moderate aggression on trade, conservative stops.

I woke up to two nice little trades but “only” 50 pips ahead. OK sanity check time.
Mmmmmm mmmmmm. That’s the life for me. Algo trading. And chilling.

EnigmaSignal Quant Trader (TM) releases soon after 4th July. We’ll keep you informed.

flatline. verb. fail to increase; remain static.

The headline is the dictionary definition of flatline.  In trading terms, it is about right.  That’s pretty much what most markets did today.  I watched none of them as I was busy coding a few enhancements to EnigmaSignal “Quant Trader” (EQT).  Yes, we have a name for the product.  That’s what we have built, a personal quant trader.  A Quant Butler if you like.  Personally, I’d like it called Joe 90 after a hero of my youth (see video below). Brits and Aussies will know why.  Americans probably not so.

The great thing was EQT kept working for us.  Right now we have two nicely profitable algos coded and we have another 4 ready to go.  All well tested and now running with real money.  Anyway….todays trade of the day comes from our HTF50 trade type.  Thats Higher Time Frame (scenario) 50. 

Long and detailed set of rules behind it, but it delivers. 

Usually 2-3 small losses a day and a nice winner.  With a risk/reward setting for us of 2:1 that means it delivers a consistent 50 ticks a day (25 forex pips).  That’s 6525 pips on an annual basis, which we like very much.  And that’s from one trade type.

I ended up as a late entry trade but still delivered 150 ticks or 75 pips.  A nice $570 profit with a maximum risk of $133.  Quite happy with that as a risk-reward.  Notice the stop chases up the trade.  Fully adaptive to market conditions (and also configurable for aggression levels).

The real key?  Would I have taken this trade?  I don’t think I would in all honesty.  I wouldn’t have taken the two losers either, but they totalled 11 pips so no big deal.  In fact, I wouldn’t have traded today and would have been $570 worse off for it. 

As from 10pm UK time, I will up our individual trade limit to $200k on forex and 4 futures contracts.  Two trades at a time but asking EQT to monitor 10 markets.  Something I know a human cannot do (and neither can a scanner!!). 

As ever, happy trading.  I will keep you informed of progress.

Meanwhile, enjoy Joe 90.

An algorithm must be seen to be believed

The above is a quote from Donald Knuth.  He’s an absolute genius computer scientist, mathematician, and professor emeritus at Stanford University.  Now I have seen our auto trader in operation for a couple of weeks, I understand what he means.  It hasn’t had a losing day in 10 days.  I’m wondering how come?  I was expecting at least one.  BUT I have spent hours tuning it to trade for each contract and the results are starting to look cool.

These are two nice trades here.  The only two today on GBPUSD.
The purple dots are entries on the first trade (it adds to a winning position) with a single exit on reaching the target.  That gave us 92 ticks profit.  The second trade was 2 half position entries (marked in orange) and that gave us a 4 tick loss.

This just ONE strategy.  We have five more under test.  And they can all be configured.  For risk, for risk/reward, for a move to breakeven etc etc etc.  It’s a VERY serious tool.

And just for giggles here is GBPAUD making us 141 ticks.  No more trades here either.  This is set to run in conservative mode also (the other modes are moderately aggressive and aggressive).   Keep watching.

We are now testing indices, stocks and of course (and I hasten to add we don’t trade them) cryptos.  So why do them?  Because some people want to.  Our job is trading what we want and enabling our members to trade whatever the heck they want.

We are very close to release date now.  We are testing with REAL money.  24 hours a day.  When we are confident to raise our own trading to $200k clips of forex and 5 S&P then we will release the product simultaneously on Ninja and Sierra.

We’re excited people.

And another long delay to the blog … but its been worth it

Deep apologies.  I have just been crazily busy on the main project for us right now – the Ninja Trader and Sierra Charts ports.  Plus a sneaky bit of trading along the way of course.

Let’s cover off the trading first. That’s easy.  Today was a good day – and its still not over yet as all these positions here are live.  A cheeky little $4000 (£3049) profit on a few positions.  Look below here though and you will see exactly why I am so happy with this trading.

So why am I so happy?  because those positions were all auto traded!!  Yes, AUTO traded. 

I was asleep when the GBP position was taken, which made it even nicer still.  And I was away from my desk when this little puppy was taken too. 

This is EXACTLY as the trade is drawn on screen at the moment (I may change it).  The risk is calculated, the target is.  NOTHING on this chart is manual. 

No trade is taken when we don’t have at least an 87% chance of making the trade work within 4 time periods.  So far in the last 24 hours, we have traded 26 times on an incredibly choppy GBP/USD.  twenty winners and six losers.  Average win is 20 pips.  Average loss 5 pips.  That makes me very happy.  It took trades that I would not have taken, that for sure.  Which is actually good.  Especially on a choppy day. 

Not long now for the release, and frankly I can’t wait.  I think we have something very special here and with only 500 memberships available it’s going to be fun to have a closed community of traders. 

We will be developing new trade types all the while and making it work for everyone.

In the meantime, thanks for you rpatience and apologies I’m not bloggin that often.

When indexes chop, stop.

Being open, today has been a really choppy day on the indexes  I have completely struggled to find an entry that has left me in a trade for longer than 20 or so minutes.  I’ve taken a few S&P points here and there and lost a couple as well.  Basically a break even on the indexes.  A nice day on the Treasuries again for a swift $400 profit.

Days like this happen.   That’s life.  Still a profit but not a good one.  Our new auto-trader (in test for release shortly) would have broken even on the S&P as at the time of writing but made nice profits on GBP/AUD (long).  GBP/AUD is now largely a function of the biggest one-way bet on currencies at the moment – the decline and further decline of the Australian dollar. 

Check this chart out.  This is weekly.  And the price is now in a zone (marked in yellow) where we forecast the price would go as long as NINE weeks ago. 

So where from here?  Goldman Sachs has said it sees the AUD ending the year at 0.72 by year-end.  Well, to be honest, that’s not far off now, is it? We have a row of support at 0.75 on the weekly chart but will it hold?  If it doesn’t then the 0.72 could be this week or next.  That’s a massive decline since February. 

Look at the weekly chart below ….. it says it all.  I’m now shortly going to start assembling a nice long position.  I will start soon (note – SOON, not today).  And with luck the 0.75 level may hold and we can head back towards the 0.79 or higher level,

New trader update – results continue to improve

It’s about 8 weeks since we last mentioned our new 19 year old trader.  Then he was brand new to trading and started off nervously but making small profits every day.  Where are we today?  Well.  Here is his trade screen.  A few tiny losses but a raft of profits. 

You’ll notice the trade summary is from his phone.  Why?  because he trades from the phone.  And he gets his chats from the broadcast unit that we have for all of our traders when they are on the move.  

He started with a $10k account and is averaging 4% per week returns.  That means he gets his money back on EnigmaSignal in just 12 weeks, trading very safely.  What a great way to trade and make a second income?  Way to go Samsung and EnigmaSignal.

 

 

Boring day, in NQ for the Long Haul.

‘Twas the day before Non-Farm, and all was still.  Bit of a dull one.  Just the odd 60 points on GBP/AUD.  I’m doing a lot of end of day trading right now.  Perfecting the mechanism for our traders that want to work and make an extra few thousand trading part-time.

My NQ remains long from 6325.  Stop moved to 6528 to lock in just over 200 points.  Will be a nice trade considering I spent 2 minutes entering it and under 1 minute a day managing it.  

Two Hearts

Two hearts, believing in just one mind
Beating together till the end of time

Those are lyrics from a Phil Collins song, for the movie “Buster”, which was, of course,  about The Great Train Robbery.  But it could just as easily have been written about the movements of the S&P and USD/JPY.  These two instruments are highly correlated – in fact, the USD/JPY is almost a proxy for the S&P.  

Have a look at the chart below.  On here you can see the chart shows the S&P500 with the USD/JPY overlayed in blue as a line chart showing the closing price of USD/JPY over the same time period. Notice how they move very closely together.  

Why is this useful information?  Two reasons.

First off, be very careful if you see a chance to trade both of these at the same time.  You could double your profits of course – but your losses will go the same way.  Be patient and trade the chart that looks the best.

Secondly.  If you have a smaller account and trading an eMini is a little rich for you at $50 a point, then trade a smaller amount of USD/JPY.  You’re going to be able to get in on the moves, but with a lower level of risk.  And there is nothing wrong with that.  Consider it a way to build up your account until you are ready to trade the eMini or just keep trading forex. 

Either way, EnigmaSignal will give you high-quality trades.  And plenty of them.