- What is your favorite feature on your trading platform?
The API that allows me to pull data into my own analysis software.
- What data feed do you use to execute your trades and why?
I use CTS data. I’ve found it to be reliable and convenient.
- How do you execute your trades (DOM/Charts, etc) and how do you manage the trades afterward? (Stop-loss and profit target).
I try to build my system is a way that can incorporate a variety of types of information, whether it’s order book info, technical indicators, anomalous behavior between related contracts/assets, or fundamental data releases. It’s important to figure out how the different sources of information interact and which contain unique information.
I generally don’t think stop losses or profit targets make sense. At an abstract level, there should be a congruence between the information I have about an asset and the expression of this view which is my position. The relationship between my view on an asset and its price should be mostly continuous. By applying a stop loss, it implies that I’ve my information changed considerably as soon as the price hit a certain level. But in reality each tick the price moved towards my stop loss gave me more information that I was more likely to want to exit.
Conversely, each tick the price moves towards the profit target decreases the expected value while the risk stays the same. As the risk/reward gets worse, I shrink my position. All of these continuous adjustments can be balanced against new information from shifting signals and trading frictions.
The stop loss/profit target paradigm imposes a division between the optimistic bet taking side and the conservative risk manager side, but I think their views can be merged more efficiently.