Day trading is all about watching chart all the day
and sometimes on night too, A day trader executes multiple
trades in a day and tries to make profit using leverage provided by broker. In Crypto broker provides upto 200x
leverage while in Forex, broker allows unlimited leverage.
If you are a new day trader then you will be more excited
as its a quick profit generating system, but as soon as you
will be habitual with it, you will know that its a repetitive
When you go to market, you will find handcrafted items such as a hand fan or sculptures which are completely manually made by human, while on other part you will find things which
are completely made by robotic machines e.g. A packing machine which automatically packs any product with zero human effort.
Who is winning? The truth is the products which are made by
automatic robotic equipment are the winner.
Now if we try to refine the term “automatic” we will find out
that nothing is 100% automatic, there is still some manual involvement.
In same way, I do not believe that trading can be 100% perfectly automated but it can be up to 90% automated.
Like you have to give a look on chart, its important. It is very hard to code a strategy which can find perfect things on all conditions of market, I said its possible but difficult.
Investors and positional trader hate day trading, They have done day trading but due to multiple failures they compare it with gambling. Its because they have not been able to find which works with high leverage as of now. So they have only options left to explore 4 hours and daily chart which fails with less probability as compared to lower timeframe.
Since I knew that its not possible to 100% automated day trading system, I start to thinking that if we even made it 90% automated then it will be very convenient for me because its not one day job for us to trade. We have to come to market every day and do same repetitive process of analyzing swings
So here is how i semi automated my system 90% and 10% manual review is necessary. I will discuss the things which are important to proceed with semi automating any day trading strategy
1. Strategy – Whatever strategy you have, First you have to find out if its possible to code or not, Its always possible to code anything but requires high skills in coding. Other options is to hire freelancers from mql5.com
2. Risk management – A strategy is incomplete without risk management. Even in day trading when high leverage is involved like 200x, we can not take risk more than 10% in a trade. Sometime when account is very small like $10, then a day trader may take full risk of 100% with a mindset make or lose in one bet, but i don’t endorse this method. A trader should always look the win or lose term with % of return and not in USD or currency term. Like people may ask how much you made today? then your answer should be in % like 5% and not like I made 50 USD because money creates greed in mind but % remains constant.
3. Money management – When a trading strategy involves multiple entries, hedging, averaging and pyramiding then money management should be also coded by a programmer
4. Broker Connectivity / API – For crypto, API connectivity needs to be coded which can send orders from MT5 to crypto brokers. In Forex, Spread calculations are optional which can sense spread and adjust position size automatically based on risk.
Conclusion : I know its not possible that every trader will be able to code his own strategy, because day trading itself is a hard job. People may spend up to 10 or more years to be a perfect day trader so coding it can be also a challenging job, but semi automation is necessary otherwise human efforts will be wasted on repetitive process of chart analysis. For example – If you know that XABCD is made on chart, then if you spend 15minutes everyday to measure XA AB BC CD ratios then i believe its waste of time, Watching chart for long hours affect your eyes too. So coding is a must step for any trader who wish to spend full time on this career. Since there can not be a 100% perfect system but if you are able to code XABCD (just for example), then if it plots incorrect, and you fix it with few clicks, then i call this semi automation, its saving time and effort and will help you do multi symbol analysis quickly and increase chances of profit generation from day trading.