One exercise I find valuable is a "visioning" exercise where I try to imagine what I want my trading too look like in the future. Of course, it is very key to do the work required to implement the vision once you define it. One of the defining principles I've used in my own trading and when working with other traders is to develop pre-existing strengths. The goal is to find whatever you are good at in your trading and refine it. In fact, that's precisely why AlphaReveal was created: it was created because I was a strong tape reader and wanted to develop that to a higher level.
My vision of the successful trader, myself as the successful trader in the future, is a vision of a trader who is running multiple systematic and graybox strategies. I see myself using my strong market read and prediction abilities but refining that process by using the best predictive information, graybox strategies, and yes probably some purely programmed strategies because I have also developed top ranked programmed futures strategies. We feel that the successful trader is going to be more likely to be trading a mix of automated or systematic strategies, graybox systems, and take advantage of sophisticated technology like AlphaReveal. On the other hand, it would not fit the "refining strengths" principle for a strong discretionary trader to go fully automated, and, as such, that is not part of my vision because it wouldn't allow me to do what I'm already good at. On the other hand, the reality is some traders can't read or predict the market and automated or strategy trading may not only be the best but the only option for those traders.
If you look at your trading today and compare it to where you need to be, what do you see? We have discussed in the past the possibility of offering graybox or even fully systematic strategies. And toward that, if you are interested in system trading you may enjoy my new BeyondBacktesting.com site where I show how trading systems are developed. Beyond traditional systems, my goal is to develop graybox systems: that is systems that allow the strong discretionary trader to use their market read and insight while providing for more structure, consistency, and allow taking advantage of quantitative insights.
Friday, May 26, 2017 5:46:00 AM