I’ve been all over the map with today’s newsletter.
Here is the first paragraph of the newsletter I was on point to deliver to your inbox today but didn’t, “What would your equity curve look like if you could redo every losing trade that was a result of:
· Deviating from your plan,
· Carelessness, or
· Mind chatter that took you out of the zone?”
I decided this was going to end up like the film on the floor after a director cuts the parts of a movie he thinks doesn’t work to further the plot.
But even before this train of thought derailed and ended up on the floor, my original plan was to relate how trading is like climbing a mountain. I climbed Mt. St. Helen’s last Sunday. Since we were on the mountain for 11 hours I had a lot of time to chat with my climbing buddies, Chris and Chuck.
As we’re trudging through the snow, almost to where we would start our ascent yet still had enough breath to talk, Chris asked me what a typical QiT weekly newsletter would encompass.
Needless to say, I dove into that pool with all fins flapping and declared quite plainly, my weekly chats somehow always trail back to “Trading Psychology.” How 80-90% of trading is all between the ears with a slight admixture of algo logic.
I had a heal-of-hand-to-forehead moment when she said, “Why don’t you write an article on how trading is like climbing?” A piece on how climbing, putting one foot in front of the other, was like trading. How one trade at a time would eventually get you to your destination whether it be a trading account that can sustain your lifestyle or the top of a mountain.
How climbing a mountain, or any challenging physical activity, is as much a psychological test of endurance as it is in trading, if not more.
I scraped both newsletters.
I needed to start over
I decided to start over because of the declaration I alluded to earlier, “My weekly chats somehow always trail back to ‘Trading psychology.’” I’m going to go out on the proverbial limb here and say you are probably getting awful darn tired of me lecturing about the psychology of trading – even though it is 80-90% of our trading blocks. (I just can’t stop can I?)
It was here I had a light bulb moment, you know the one where the light bulb comes on in the bubble over your head?
Since my readership has increased substantially over the last year, I reasoned a 10,000 ft. view of QiT’s nightly process was probably well overdue. There is a great deal going on behind the scenes you should know about.
Even if not a member, the fact that you are reading this newsletter shows you are interested in algo trading.
This means you’re going to have to wait for my sermon on taking responsibility for your trades for another time.
Did I just hear a collective “sigh?”
Two hours after the market closes, the first stage of my nightly batch process fires off and checks the status of the data QiT downloads from our data provider Norgate Premium Data. There are several editions of the data each day that bring different groups of markets up to date and we have to ensure we’re scanning the correct edition.
This is a very important step.
When trades are late to the party, 90% of the time, this is the reason – waiting for the correct version of the data. The batch process will continue to check and doesn’t kick off the second phase until it is handed the baton from stage 1.
The second segment invokes the algorithm software, Amibroker, and one by one each of the nine algorithms scans the stock market for setups. The last piece of code in each algorithm spits out the trades for the next day. This phase takes about 2 hours.
Now that we have all the trades, the third stage kicks off. Here we do a “continuity check” confirming the trades match yesterday’s trades. This part of the nightly process seems simple and rather uncomplicated but it has caused me more angst than any other segment.
I have a matrix of all the different combinations and permutations that have to be accommodated. It may have taken us months to get this stage working but nightly it only takes seconds.
The fourth and final stage is uploading all the trades to each membership site. This takes about 5 minutes.
If everything runs according to Hoyle, the stars are aligned just right and we all stand on our heads singing, “Yankee Doodle Dandy,” trades for tomorrow should be posted within 4 hours of market close.
This all takes place on an Amazon Virtual Server. Meaning, I can check the process, and address issues that bubble up, from anywhere in the world.
Pilot to passengers, “We will now start our descent from 10,000 feet to make a landing. Hopefully, you have enjoyed your flight.”
We’re the Plan in “Plan your Trade and Trade your Plan” – TraderJanie
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