A Method For Trading Confidence

Graybox Trading

May 24

A Method For Gaining Trading Confidence

  1. Study market by tape reading, chart, replay, etc and identify patterns, tendencies, etc.

  2. Systematize the patterns/setups/etc. Quantify at least part of the methodology but recognize that parts may be difficult to quantify– write those parts down.

  3. Refine the setups through backtesting and development.

  4. Program the strategies into a graybox which supports ability to interact with the system. Hint: Use BeyondBot to save yourself weeks of effort or thousands in custom programming.

  5. Rehearse the setups through market replay using BeyondBot

  6. Go live with e-micros with minimal risk

  7. Increase size as you do well

  8. Go back to step 1 and build & deploy more BeyondBots. Look to generalize or specialize to build more strategies.

About the Author

The author is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline. You can contact the author at curtis@beyondbacktesting.com.