Last week's article saw me state facetiously that I was loath to publish details of my
trading lifestyle, "Primarily because🍉 it is so dreary. No poolside selfies from me,
courtesy of a cheap AirBnB holiday." In answer to my previous🍉 article, The Search for
Edge , Boris (probably not Johnson) left a comment that I felt would be best answered
🍉 in a dedicated article rather than as a reply in the comments section of the original
article.Last week's article saw🍉 me state facetiously that I was loath to publish
details of my trading lifestyle, "Primarily because it is so dreary.🍉 No poolside
selfies from me, courtesy of a cheap AirBnB holiday."
Boris commented
James you have
never been keen on showing the🍉 poolside life of trading, I understand why. But wouldn't
it be better to say it's a highly important part because🍉 of how stressful trading is? -
or any high level competition and learning to turn it off and turn it🍉 on is one of the
most important parts of high level competition (Trading & Business). Which is why
business and🍉 trading is the two more difficult domains to achieve substantial success
in is becuase it run's 365 and your neck🍉 is on the line everyday. My point being as
long as people understand intermittently busting your ass then having a🍉 week of in
capetown once a quarter will do you much better in the long run then just solid grind
🍉 in which you become more likely to make errors and costly mistakes. Rest is key
whichever way you get it.
I🍉 didn't know there was a poolside life to trading. Did I
miss a clause in my agreement with Betfair?
Betfair User🍉 Agreement
15.2 - All users of
the Betfair exchange are expected to post nauseating photographs of their chest hair
from different🍉 poolside locations on a regular basis or forfit their exchange rights
and privileges.
That'll teach me to scroll immediately to the🍉 bottom of those tiresome
service agreements and click "I Agree" without reading anything.
Boris says, "But
wouldn't it be better to🍉 say [poolside life is] a highly important part because of how
stressful trading is?"
Why? Is chlorine invigorating for you? Personally,🍉 my ears clog
up when I'm in a pool and I become very grumpy for the rest of the day🍉 so no, being
poolside, toasting my chest hair (singular) would not be a good idea. A grumpy bunny
does not🍉 a trader make.
Reading Boris's comment in its entirety suggests that he is
talking about himself, a manual trader, who sits🍉 in front of a screen all day long. If
I did that then I would not be looking for a🍉 pool, I'd be looking for an optician and
maybe a psychoanalyst.
If Boris (and others) took the time to read more🍉 of this website
then he (and they) would realise that I am an algo-trader, one who doesn't sit in front
🍉 of a screen all day long.
Maybe it is not fully understood what algo-trading is. Yes,
there is research and programming🍉 to be done in front of a screen but that is varied
and enjoyable work and not the chore that🍉 the ladder lovers have to endure.
i.e. entry,
exit and any money management strategy) and then leaves the bot to get🍉 on with it.
Therefore, the algo-trader has a lot more free time and suffers a lot less stress (if
any)🍉 because they are not physically trading. When a manual trader has constructed (or
guessed) a strategy they have to implement🍉 it by hand in front of a screen from entry
to exit. An algo-trader codes the logic of a strategy🍉 into a bot entry, exit and any
money management strategy) and then leaves the bot to get on with it.🍉 Therefore, the
algo-trader has a lot more free time and suffers a lot less stress (if any) because
they are🍉 not physically trading.
Boris is rather behind the times if he believes that
manual trading is still the mainstay of the🍉 financial markets. Most open outcry trading
pits have gone. Some of the jobbers have swapped their brightly coloured jackets for🍉 a
shirt and tie, and sit at electronic terminals but the bulk of financial trading is
automatically performed by computers.🍉 Yes, the markets are running, somewhere on this
planet, 365 but news and data are being processed and acted upon🍉 at the speed of light
and that's no place for a human.
If you want to relieve the stress of trading🍉 then
don't trade. Build a trading strategy and leave it to an automated trading system to
implement. If you truly🍉 have an edge then why are you allowing your human frailties to
get in the way of your potential profit?🍉 If you have to constantly jump in and take
control then your system is not quantifiable and there is no🍉 proof of edge.
