Eliminating Emotion with Program Trading
IN THIS CHAPTER
Preparing to program
Backtesting, Backtesting, Backtesting
Building on some standard strategies
Arbitraging your way to new opportunities
In a way, day trading is simple. You see an indicator showing that a trend is starting. You place a trade. Then, when the trend is over or you hit your loss limit, you close out the trade.
Ah, but there are two challenges. The first is identifying an indicator or trend in enough time to trade on it. The second is fighting your emotions so that you actually execute the trade and then close it out – and not execute a completely different trade, or be too overcome with doubt to place the trade, or wish and hope that the loss will magically reverse itself.
Many traders find that the way to make trading work is to do it automatically. They set up their accounts to scan for indicators, and then they place the trades for them. Some traders trust their systems enough ...