Question on all day automation

[ija34]

Hey all,

So I just have a question on all day trading using automation as I have a night full time job so I sleep most of the day. I need a system where I can select the markets and stakes and let it run.

So my goal is to earn on average a certain profit per trade over 50,000 trades. So for example, if I want to make £10,000 over 50,000 trades then I am aiming for an average of £0.20 profit per trade. I am hoping to complete the trades in a year but not a problem if it runs over as long as it's no more than 1.5 years. So if my average profit per trade drops below my target then I am aiming to increase the stake slightly on trades that I am more confident in which if successful will increase the profit per trade.

So back to it, is it possible to automate this all day taking everything into account or would I physically need to monitor the markets for this plan to be successful?

Cheers.

[Dallas]

The options within automation now will allow you to do most things, what isn't possible could still be done using Excel

But just wondering about this part of your post;
>> 'If my strategy doesn't perform as well as I hoped I want to increase the stakes on certain selections/markets'

Do you know if the market the strategy is running on can absorb larger stakes?
If so why not just use larger ones to begin with to maximize your profits?

[ija34]

The options within automation now will allow you to do most things, what isn't possible could still be done using Excel

But just wondering about this part of your post;
>> 'If my strategy doesn't perform as well as I hoped I want to increase the stakes on certain selections/markets'

Do you know if the market the strategy is running on can absorb larger stakes?
If so why not just use larger ones to begin with to maximize your profits?

I don't want to risk too much early on ideally. I'm still new so I'll be learning for the next 6 months before starting my 50,000 trades. My goal is to double the profit per trade after every 50,000 trades up until £2-£3 which would make £100,000 - £150,000 a year. This is my final and dream goal. I haven't decided on what stake I will use yet as if it's £2.00 then I would be looking at an average of 10% profit per trade. Not sure if this is too high at this point or if I should double to £4.00 then it's 5% per trade or place stakes so I make 1% per trade? It's trying to find that balance that I am struggling with or I may use the strategy of betting £8.00 on high confidence markets, £4.00 on medium and £2.00 on less confident markets.

[Derek27]

It's not a good idea to decide what profit you want and gear a strategy around your expectations. Get the best you can out of your strategy regardless of what you want.

[ija34]

It's not a good idea to decide what profit you want and gear a strategy around your expectations. Get the best you can out of your strategy regardless of what you want.

That's basically what I'm aiming for. There's only a lower limit on the profit per trade but no upper limit so if it turns out that I'm making £1 profit per trade by the end of 50,000 trades then great but if it's less than my £0.20 target then that tells me that something needs to change.

[Dallas]

The options within automation now will allow you to do most things, what isn't possible could still be done using Excel

But just wondering about this part of your post;
>> 'If my strategy doesn't perform as well as I hoped I want to increase the stakes on certain selections/markets'

Do you know if the market the strategy is running on can absorb larger stakes?
If so why not just use larger ones to begin with to maximize your profits?

I don't want to risk too much early on ideally. I'm still new so I'll be learning for the next 6 months before starting my 50,000 trades. My goal is to double the profit per trade after every 50,000 trades up until £2-£3 which would make £100,000 - £150,000 a year. This is my final and dream goal. I haven't decided on what stake I will use yet as if it's £2.00 then I would be looking at an average of 10% profit per trade. Not sure if this is too high at this point or if I should double to £4.00 then it's 5% per trade or place stakes so I make 1% per trade? It's trying to find that balance that I am struggling with or I may use the strategy of betting £8.00 on high confidence markets, £4.00 on medium and £2.00 on less confident markets.

If its a new strategy you should be starting with min stakes then slowly start to increase them if its showing promise until you find the sweet spot of getting the max profit - which could take several thousand markets dependant on the strategy being used

Also the market will decide what return (if any) you'll get depending on the stake and the edge your strategy has, setting targets yourself is never a good idea and rarely if ever end well for those who set them

[Derek27]

It's not a good idea to decide what profit you want and gear a strategy around your expectations. Get the best you can out of your strategy regardless of what you want.

That's basically what I'm aiming for. There's only a lower limit on the profit per trade but no upper limit so if it turns out that I'm making £1 profit per trade by the end of 50,000 trades then great but if it's less than my £0.20 target then that tells me that something needs to change.

How did you establish 10% as an optimal profit? Why not 8 or 12%?

If humans had eight fingers instead of ten and we developed an 8-digit counting system, would you be aiming for an 8% profit?

If you make £8000 instead of £10,000 over 50,000 trades, increasing stakes might increase your profit to £10,000, but it would still be 8%.

[ija34]

10% isn't my set target? The profit per trade is based on my target profit over 50,000 bets which turns out to be £0.20 and if I'm staking £2.00 on a trade then the target ends up being 10% of the stake. Of course, this is based on the assumption that I'm winning every trade which would never happen so in reality I may trade out at £0.60 then -£0.80, +£0.80, -£0.40 which gives me £0.20 per trade. Obviously, it won't be exact but as long as I'm above that target then I'm on track. It depends on the strategy and market, what my trade out price would be. For example, using lay the draw strategy, I've traded out at anything between £0.23 and £1.09 using a £2.00 stake and using lay over 0.5 and trading out after 20 minutes of play, I've only traded out between £0.02 and £0.09. Although laying over 0.5, you can use a much higher stake because of the low odds but it's a very volatile and risky market.

[Derek27]

10% isn't my set target? The profit per trade is based on my target profit over 50,000 bets which turns out to be £0.20 and if I'm staking £2.00 on a trade then the target ends up being 10% of the stake. Of course, this is based on the assumption that I'm winning every trade which would never happen so in reality I may trade out at £0.60 then -£0.80, +£0.80, -£0.40 which gives me £0.20 per trade. Obviously, it won't be exact but as long as I'm above that target then I'm on track. It depends on the strategy and market, what my trade out price would be. For example, using lay the draw strategy, I've traded out at anything between £0.23 and £1.09 using a £2.00 stake and using lay over 0.5 and trading out after 20 minutes of play, I've only traded out between £0.02 and £0.09. Although laying over 0.5, you can use a much higher stake because of the low odds but it's a very volatile and risky market.

In the example you gave that would be £0.20 over 4 trades, averaging £0.05 per trade, but I get your point.

If you find you're averaging £0.20 per trade and you're well within the market limits, wouldn't it make sense to increase your stakes anyway to optimize profits?

[ija34]

10% isn't my set target? The profit per trade is based on my target profit over 50,000 bets which turns out to be £0.20 and if I'm staking £2.00 on a trade then the target ends up being 10% of the stake. Of course, this is based on the assumption that I'm winning every trade which would never happen so in reality I may trade out at £0.60 then -£0.80, +£0.80, -£0.40 which gives me £0.20 per trade. Obviously, it won't be exact but as long as I'm above that target then I'm on track. It depends on the strategy and market, what my trade out price would be. For example, using lay the draw strategy, I've traded out at anything between £0.23 and £1.09 using a £2.00 stake and using lay over 0.5 and trading out after 20 minutes of play, I've only traded out between £0.02 and £0.09. Although laying over 0.5, you can use a much higher stake because of the low odds but it's a very volatile and risky market.

In the example you gave that would be £0.20 over 4 trades, averaging £0.05 per trade, but I get your point.

If you find you're averaging £0.20 per trade and you're well within the market limits, wouldn't it make sense to increase your stakes anyway to optimize profits?

I agree if at that point I have the balance to cope with it and if I'm experienced. I think at my stage, it would be best to stick with the low stakes until I know the ins and outs. I will be trading in practice mode for a while anyway so I should know a lot more before I begin trading but I get your point. If my trading is successful and I can increase stakes then yeah I will.