Near a Robot signal level.

[manucastle]

Pascal/Billy,

When we get prices very close to a Robot signal, but not passing through it, for example today's IWM's 81.07 very close to the short signal of 81.18, what nuances can we read into this ?

Is the market, or market makers, giving us a subtle message to back off and not take the trade ?

Would you take the trade personally if it got this close anyway ?

Thanks in advance.

Trev

[Billy]

Trev,

This is all part of the need for a line in the sand for automatic trading systems. The optimal entry price is derived from the algorithm that gave the best entry level for optimal long term risk-adjusted returns. It is also frustrating when it is missed by just a few cents. But remember that the robot's first objective is to minimize the risks before chasing big returns. It is always easy to recover from a lost opportunity, much harder from lost capital. Currently we only have lost opportunities, not lost capital.
My view is that experienced, advanced discretionary traders can take more risks as they are better in managing their risk. I see no problem for them with using the robots as a discretionary guide and entering at a different price than the robot. And yes, that's what I do sometimes for my own accounts. But i will not talk of my discretionary trades here -even if inspired by the robot - because I can be wrong and much confusing to disciplined robot followers or novice traders.
Billy

[manucastle]

Trev,

This is all part of the need for a line in the sand for automatic trading systems. The optimal entry price is derived from the algorithm that gave the best entry level for optimal long term risk-adjusted returns. It is also frustrating when it is missed by just a few cents. But remember that the robot's first objective is to minimize the risks before chasing big returns. It is always easy to recover from a lost opportunity, much harder from lost capital. Currently we only have lost opportunities, not lost capital.
My view is that experienced, advanced discretionary traders can take more risks as they are better in managing their risk. I see no problem for them with using the robots as a discretionary guide and entering at a different price than the robot. And yes, that's what I do sometimes for my own accounts. But i will not talk of my discretionary trades here -even if inspired by the robot - because I can be wrong and much confusing to disciplined robot followers or novice traders.
Billy

Thanks very much Billy,

Wise words indeed !

I also understand that it is extremely important for you and Pascal not to confuse users of the Robot with your own discretionary trades.

Trev

[Rembert]

The GDX robot has closed it's short position yesterday at the close.
Of course, we can only know this after the fact.

What is the advised action for closing the positon ? Closing it on the next open ?
At the moment I have a limit order set in pre market to try and close the position at yesterday's closing price.

[asomani]

Thanks very much Billy,

Wise words indeed !

I also understand that it is extremely important for you and Pascal not to confuse users of the Robot with your own discretionary trades.

Trev

I also agree that this is important and the most suitable thing.

[Billy]

The GDX robot has closed it's short position yesterday at the close.
Of course, we can only know this after the fact.

What is the advised action for closing the positon ? Closing it on the next open ?
At the moment I have a limit order set in pre market to try and close the position at yesterday's closing price.

Rembert, you're doing the right thing: Either try to exit near closing price in pre-market or at the open.
This is the main reason all our efforts are now geared for implementing the RT 20 DMF. It is a much greater priority than developing more robots. Billy