ALGORITHM VERSUS HUMAN

“Sounds legit!”

🙶Quants🙷, as they’re called in trading, are the ones who design and program

algorithms for trading purposes … made up primarily of engineers,

mathematicians, computer scientists, & physicists, they usually have no

common sense in the 🙶art🙷 of trading … humans, on the other hand are traders,

and when they get into trouble their emotions can lead to ruin … so, who to

believe? 

Quite frankly, it’s a false construct … algorithms can guide and use computing

power to point to decisions that are hard for humans to see on their own … what

they lack is situational awareness … if humans can follow them, then humans

can limit risk by design and thereby eliminate a high degree of risk from their

trading … it’s when they ignore the signals that they get into trouble.

I originally had planned to use July & August as a track record for the algorithms,

but ran into problems in July when I discovered some minor inconsistencies in

the math, along with some logic problems I hadn’t thought of up to that time

… this has taken over 5 weeks to solve and implement into code … over the last

few days to a week, we’ve been able to run our complete set of algos covering

GBPUSD, DOW30, & XAUUSD in our own accounts, and am pleased with what I

consider the final product … I’ll be looking to trade every signal, probably

starting next week as September starts … right now, it looks like gold and the

DOW30 are our prime candidates, cuz Cable needs to pick up volatility to be

productive … now it’s on to writing the course work in a straightforward manner

that even Newbies can understand, and more importantly implement easily on

the MT4 … everything should be ready by October 1 … more on this in later

blogs.

Gold today has decoupled from stocks, and quite frankly it feels like markets are

throwing in the towel towards the 3 day Labor Day weekend coming up … just

another unchanged day, with very little selling interest on any breaks however

small they may be, but nobody is interested in pressing the upside either … as I

said yesterday, gold needs to rest and/or correct some, cuz if it doesn’t and we

keep climbing from here, the end is gonna be uglier than any of you can imagine

when it comes … and at some point, the scumbag banks and the FED will see to

that in spades … tomorrow will most likely be slow, but Friday will be a ghost

town in terms of trading action, unless there is Trump or China news … again

overnight, Asia sees ALL the action, while Europe is dead, and the U.S. session

has been simply awful in scope … nothing to do here folks except wait,

otherwise you might as well be flipping coins for trading signals … until

tomorrow mi amigos … Onward & Upward!!

Have a great day everybody!

-vegas