Automated Exit Point

[aharris81]

Does anyone use automation to exit their trades?

I'm finding that nearly all of the time I'm getting out to early and missing the big movements.

Then because of that I'm thinking about my next trades too much and missing my entry or not getting in at all.

By half way through the day I've missed a few tidy trades and then I'm thinking its too late now, stop for the day and low and behold my trades I've scratched would have been profitable

I have my exit point in my head but my hand has other ideas and I've tried and tried

I'm thinking of once I have my entry then to set the automation to get out for me win or loss which will take out the emotional side of things

I know I'll miss some chances to scratch instead of lose but the way it's going I'm seeing god knows how many ticks of all sizes slip through my hands every day

Anyone else have this problem and use the automation feature?

[steven1976]

The problem with automated exit points is you are showing your cards to the market. I personally wouldnt use them.

[Seymour]

Hi Aharris,

I have to agree with Steven1976, automated exits leave you exposed in many circumstances. It sounds like you are lacking in confidence that the horse in question is going to continue to drift or steam. Just keep watching the opposing half of WOM for any big money threats and dont forget that market over-reactions will cause ticks to go against you in the process. Confidence will come with time. Watch Mugsgame's videos to see just how far he lets the market go against him whilst keeping his cool. Its quite amazing if not alarming.

regards
Jon

[aharris81]

Hi Guys

Thanks for the replies and yes I think your right about the confidence. I'll keep trying and hopefully it will come with time.

One question though is when you say I will be showing my cards to the market how can this be if I am just using BA to green or red up at a certain time before the race starts. The bet isn't placed until then so how would anyone see that?

Regards
Adam

[Euler]

I tend to use automation to enter a market because it can react faster than a human, but I exit myself because I can make a better decision on how to do that.

[steven1976]

Hi Guys

Thanks for the replies and yes I think your right about the confidence. I'll keep trying and hopefully it will come with time.

One question though is when you say I will be showing my cards to the market how can this be if I am just using BA to green or red up at a certain time before the race starts. The bet isn't placed until then so how would anyone see that?

Regards
Adam

The easiest way I can try to explain is to imagine a very poor liquid market with no more than a few pounds being matched. Let's say we enter 1000 pound lay at 3s and suddenly a big 10k order comes in and moves the price to 2.9. If the movement caused your stop loss to trigger at 2.94 and sit behind the 9k left, the market will see your stop loss and know they can sell out at that price or wait to see if more backers follow the money. It will also know that it is another trader rather than a real bet so they would know you are likely to trade out of it if it was pre event.

Hope that makes sense.

[freddy]

This is by far the hardest aspect of automation imo, especially when using automatic stop losses which can be a absolute disaster.

For those who don't know ive been automating all of my strategies over the last few months, as i am busy doing other things most days now.

this is without doubt where the biggest challenge lies,
my strategies are still profitable, but just not as much as if i was at the helm