Today is the second day of the experiment. The computer closed both of them. The FAZ trade was up 30% and the SRS trade lost 5%.
When I woke up this morning, FAZ was up 15% in pre market. And the computer sent a sell order right after the opening bell rang. It kept checking the gain/loss of these 2 positions tick by tick. In terms of the FAZ position, if the gain was = or > 25% and a sell order would be executed. Due to the gap up, it was 5% more than the targeted 25%. That was a bonus. Of course, that would be extra risk if it were in the different direction than my trade. For the SRS position, the gain never reached 25%, and it hit the stop loss, 5% and it was out.
The FAZ exit was perfect. It was almost the high of the day. Question is whether it should be considered luck or discipline. The computer knew it captured a giant return (30% in 2 days) and it was neither afraid nor greedy. Greed and fear are the biggest enemies of traders. The computer has none of those issues. So It held onto the FAZ position and closed it according to the plan. It never flinched in any order executions. I have no problem closing a position when it hits its target. If you have been reading my blog for while, you know that. But I still have issues pulling the trigger when there is entry signals The computer also showed rock solid discipline in the execution of the SRS trade because it followed the trading plan religiously. The experiment will carry on with SRS. Let’s see if SRS will show us the darkest side of machine trading. That is 5 losers in a row.
Here are the 2 trades closed today. Click on the pictures to have a better view
What do you think?
Would you like to receive the latest trading ideas or other updates from my blog? Then join hundreds of others on my mailing list below. It is totally free and easy to opt-out.