Human Touch and Timing VS Automatic Trading

Human touch and timing are two very difficult to program in any algorithm in platforms available to us, I mean programming in C + + or some script  from platform. Not available to us or at least the vast majority of traders development department of systems engineers and mathematicians. Nor do we have the size of the trading accounts of the institutions.

The term "human touch" I mean that perception gives us observe the chart and see how each candle is formed, as the market develops, in every volume  price level, the vision that is very difficult to program in some algorithm . Some say it's the same vision that leads to mistakes, can be, and to save us from many others as well, it comes down to the statistics of our system. The human touch is what gives us the ability to adapt to market changes in both intra-day and in the medium term. Also be present before any geopolitical incident that almost always have an impact on the markets.

But I am convinced that programming combined with the human touch and timing are very powerful tools when operating both intra day and in the medium term.

I mean programming tools that clearly show the imprint of the institutions on the volume, tools that help us manage an operations, inputs and outputs, our profit targets, stops and trailing stops. These tools and many more along with the timing and the "human touch" will help us be more effective in our daily trading.

It is clear that all this is worthless without a proper trading plan and without a proper money management policy. The last two items are fundamental in our system.

The automatic trading is not in my ability and I mean in many ways, but the most important is that I do not have the account size of institution or technology they possess, not to mention that in my case although orders are managed and is pretty fast  I have this process  automated, the disadvantage of not being connected near the server on which the orders are compensated, of course there is the possibility of renting a dedicated server in Chicago and win a few milliseconds, but for now not find it necessary. All these aspects are related to the system and trading plan that every trader should follow.

What if I have clear is that develop tools and combine with the human touch and the timing, form a powerful combination.

As I said once also intraday trader,  I set up my own tools in C + + and NinjaScript.

If this topic interests you leave your comment, and if you need some information about leave your comment and I will send you more information.

Market Profile

The Market Profile is basically a graphic that shows the time on one axis and another shows a summary of market activity in the form of price distribution.

It should be clear that the Market Profile is a way of representing market activity as it unfolds. There is NOT a system to predict support and resistance or trend, its usefulness lies in knowing interpret.

The elements comprising the Market Price Profile called Time Opportunities (TPOs), which are simply a letter assigned to each half hours composing the session. If you cross a certain price for that half hour, the corresponding letter or TPO is noted next to the price listed on the vertical axis.

The first hour of trading is what is called initial balance. In this period of activity, market makers try to find a range in which buyers and sellers agree to trade.

In general we can say that any movement beyond the range established at the beginning of the session is an extension of range, indicating that something has changed between those involved in the market.

The fall causes some buyers to activate their purchase orders around 1651.6 / 1651 slowing the fall in the bottom of the session until the period "h".

The full range of the session is given by the total height of the Market Profile, the area where it performs 70% of trading in a session called Value Area.
The "h" appearing alone at the bottom of Market Profile called  footprint buyer  and indicate that buyers rushed into the market to see those making the price levels are rapidly revolved.
The more longer chain letters, must have at least two, the stronger side force that reacts to movements, in this case the buyer side.
The longest sequence of letters that is near the center of the range is called the control point, which represents the price at which concentrates most of the daily activity...

Continue developing this paper, and how to use with price action....

If you are interested in Market Profile leave your comment and I will get more information, if you need this tool I present this partner who has developed this tool for ninja trader:

http://fin-alg.com

Multitasking Brain

Most traders, professionals and non-professionals, do not have a department with technical analysts who process information and prepare the report for the trader to operates in markets. Just the same person is the technical analyst and trader, this usually leads to errors in interpreting charts and especially for traders who operate following  price action  these faults surely lead us to a bad execution of operations. Regardless of price action.

This means that we sort and organize our work before, during and after each day.

The first thing to do is get the suit of  Technical Analyst market and get quality information that will allow the trader to make better decisions, identify profitable opportunities, try to act on the right side of the market, and avoid false signals.

Our first job is to define in our charts  support levels and resistance that the price is marking us, I personally divided into two groups, long-range and short-range in annual daily bar charts as the example. The task is "simple" but not easy. (takes practice). In the short range of only left the last quarter.

When in doubt or simply believe that a certain price is a support or resistance level mark on the chart and then the time and price show you if that level was really important for the market. The correctly identify these levels will provide more than 60% of the work.

As seen in the chart do not use Lagging indicators  that are behind the price action. Respect for traders who  can interpret other indicators and even many lagging indicators which combine with other techniques ... but not me.

We also have projection indicators such as support and resistance, pivots, trendlines and Fibo's. Many of these tools use daily.

The single biggest indicator we use is the price.

An analyst price action is a technical analyst, uses price as its main indicator, studies the structure of charts and price action, this makes only believe what you see and not what you imagine or would like happened. The technical analyst  no seeks  entries, no trade, just looking for quality information and filtered noise excluding graphs.

This way of ordering the head and work has some advantages: it reduces the perception of randomness, minimizes the contradiction between indicators, regardless of the trading platform, and enable immediate adaptation to changing market conditions, which happens frequently .

Summarizing the technical analyst will configure in our brain, or "our new employee" will prioritize and deliver tasks before informing the trader:

• identify trends
• identify levels
• Identify patterns (Breakout - pullbacks)
• Quality information

Remember you only need look information when making this analysis, no seek operations.

In the next post will develop many technical concepts and words I have used.

Right Side

I mean the right side of your monitor.... there where the graphics are generated, the place where everything often becomes in doubt.

I see hundreds of graphic analysis, but not one on the "right side" all the graphics are very nice to finish the session, all analysts demonstrate his great theories and trading systems, and all lines that match to perfection with theories.

But neither does his analysis of the right side, none acknowledge that your system or magic formula has the same problems as any trader when analyzing that side.

Hundreds of indicators, lines and FIBO's match to perfection in the post-session analysis, hundreds of graphics and videos begin to be published online every day with the analysis of each analyst to the end session. In all demonstrated how perfect are their systems, all winners systems. Occasionally  any one post  losing trade, and we all believe...... it is human after all ....

After many years in the markets, as individual professional trader, I can tell you that there are people with common sense and a great approach to trading, and are the first to recognize that they have lost and often lost, but his balance is positive to end of the month and end of each year.

Their system is based on many factors (develop this concept later) but the most important is that they know they will lose and the most important thing is to minimize these losses.
It is the cornerstone of any trading system, recognizing that there are lost and to quantify.


Unfortunately abound "illusionists market experts" who try to give you free advice, signals and settings for your trading. And then over the years you will realize that nothing is free.
You paid advice, courses and intraday signals, you've wasted your time and most importate, "your capital."


This post is not meant to attack anyone in particular, just encourage you to try making your own system and way of working, which take into account important factors when designing a trading system.

I repeat that I know and there are many traders who are winners, my biggest advice is to stay near of these traders, you can learn the most important of them.

...Sorry if you were expecting thousands of graphics or past graphical analysis , my interest is that you can make an analysis of the "right side" of your monitor and this will serve to obtain a positive balance in your account at the end of each month...

Particularly after a long time I could make my own trading system, that would allow me to live and devote full time to this activity. And I must share with you my minimalist trend when designing an effective system trading, so my trading is based on price action.

Only left in each post my invitation to join a community of independent traders we can share knowledge and experience, we can do some trading sessions together. That is why I decided to open a trading webinar as a meeting, if you are interested leave your comment or send me an twett.

If you have any questions or topic you'd like to develop just let me know.

Thank´s