Advanced Automated Trading

Let’s see what this account did since last night’s open.

The 2S trader opened a long at midnight (server time), and a 4% cropper killed it 5.5 hours later. Pretty straightforward so far.

As for the other trade there is a whole lot to talk about. I cannot find any more which routine opened it, because the comment lines were overwritten by the system with to/from, and the magic number was lost. The experts history by now is littered with stop loss attempt entries, so the open has been pushed out from the log. The size is somewhat of a clue. It had to be a hedger routine with a which ever is larger logic or an overhedger. 5.63×1.25 = 7.0375. So this order was opened by the Porker Overhedger (that I coded yesterday), and the magic number was 54.

Since the sell order was opened two hours after the long, if may had been a hedge order. By this I mean, that the short possibly would had never gotten opened if there weren’t any longs on the books.

Lesson number one is an other is merely an excuse to make money. You should not be afraid from being in the market most of the time, and nor should you be afraid of leverage. In a sense you need to provoke yourself into making money. You need to think things through properly at the designing table is all. Remember that both trades were opened with codes instead of stop losses, that determined which kind of trail stop / crop can be applied. You must always think of the individual routines as a part of a well oiled system.

Lesson number two is the way the hedge trade was eliminated. The first close out had to be triggered by a cropper (doji cropper, golf cropper or star cropper), but these croppers were intelligent enough to leave 1 micro lot open from the full size upon closing. Why? Because of keeping the magic number in the order list would prevent the hedger from wanting to re-open the hedge in case the opening trigger is still valid. As you can see, the smart trail stop was entrusted with finishing off the micro lot that was left behind.

This was a well orchestrated effort from an automated trading system.