(06-28-2020, 07:39 AM)Omni3 Wrote:(06-27-2020, 09:10 PM)lano1106 Wrote:(06-27-2020, 12:51 PM)Omni3 Wrote: Cool, and what is the trade investment amount compared to your overall bank (expressed as a percentage)?
Why are you asking all these questions?
It is no secret in this journal that I'm still developing the trading system. It is really hit & miss as you can see in my last entry. Therefore, I set a daily budget to $100. This is an amount that I wouldn't care to lose 100% if something went really wrong but TBH, on my worst days, I must not have lost more than 2% in a single day.
So the 4.6% must be on that value. In my account, I must have the equivalent of $500 in it. For now, this is enough for my dev purposes but I could fund it more if the need arise.
Since you are asking, it helps to clarify my goal to talk about this. I must be waiting to have a string of 7 consecutive profitable days and then scale up the daily budget. I suspect my current strategy to be scalable up to a daily budget up to 1-3 BTC/day.
Beyond that point, I'll probably hit some scalability issues and hit an upper limit to what is possible with this current strategy without tweaking it.
Beside that, if you were attempting to get a peek my risk management, all I can say is that it is pretty much simple. I will simply adapt as I go. that is the goal for now.
Hey, didn't mean to upset you. I was asking as, years ago I tried many times to trade but found I was underfunded and kept blowing my bank. I eventually learnt that the risk/reward ratio is the most important aspect of trading, as the smaller the risk on each trade (relative to the overall bank) the smaller the emotional investment/turmoil.
So, all the best with your trading/bot.
Omni3, no worries. At first, I was annoyed by the questions. I think that the feeling was from an unconscious interpretation that you were trying to find flaws in my ongoing venture. This might have put me slightly on the defensive.
Past this initial impression, TBH, I see your questioning as beneficial.
1. Despite being improbable to create from scratch a working and profitable algo trading system in less than 6 months, I need keep in mind what I'm trying to do and if it makes sense at all. I was so happy to make a 4.6% trade but in absolute, it is $4.6 in profit for 6 months of full-time work. Your question kinda did bring me back to reality or at least force me to question it. This is healthy. I believe in the potential of the project but I need to be careful to not fall in lunacy.
2. Answering you did help me verbalize and clarify my objective and the plan to reach it.
I can relate to your past experience. I lost thousands in highly speculative bets roughly 10 years ago. The one takeaway from that experience was that if I was to ever return back to trading, it would be through an algorithmic system where decision are automatically taken in a fraction of second where all emotions are aside because only hardcoded rules are followed in the decision making.
