Yes, but humans have emotions when they look at performance.
Belive me, I monitor my live algorithms all the time. Monitoring, Testing, Maintining, Optimizing are essential. On HFT level it will be a full time job that might even not performed by one person only and I need to create corp. around.
I agree, I’m happy that I started manual trading 7 years ago and I’ve made all the mistakes many beginners make: Martin Gale, Grid-Trading, Averaging, Revange Trades, No/Bad Stop Loss, Revange Trades, Over Trading, Over Leveraging, Impulse trades and any combination of it… you name it. I blew up a lot of Demo accounts and lost quite a lot of real money, but I’ve learned valuable lessons.
However, I claim, whenever you find a clearly defined ruleset, clearly defined setups as well as clearly defined entry and exit strategies, there will always be an algorithm that can execute those rules way better than a human trader can. Also, you don’t want to backtest your strategy many times with different parameter setups e.g. on a 15 Minute time frame over many years.
People could argue that backtesting is not essential but it tought me valuable lessons. For instance, many rulesets based on predicting price movements can work perfectly over years but then completly get murdered by the market at some point of time. It must be traumatizing for a human trader experiencing this. Even worse, they can come up with wrong conclusions and start questioning themself for no reason. Other traders might belive they found the holy grail but are not aware how much risk they take and after some month a few trades take all their profits away.
It’s fine if people want to classify me as a beginner, since I did not experience all failures in real time with real money. But I’m happy that I did not always spent month or years to blew up my complete account. I got already traumatized after seeing the backtesting results of my algorithms. Since then, I got more realistic expectations.
Today, everybody teaches rules and mindsets but it is hard find people that teaches the upredictability of the market. As market rithm and structure can change any time unexpected there will always be a phase where many (if not all) prediction based strategies get broke. Whatever your stratgey is, it doesn’t matter how fancy or complicated, executed manual or automated, on live or demo account, using trend or price action, the market can ( and will at some point of time ) do exact the opposite 100 times in a row. Almost no one will tell you that. Most people tend to measure the future against the past or follow their own conflicting interests.
As I’m trading from central europe there is no chance for me to test and execute some strategies manually. Especially if they require speed and low slippage I need to be co-located and automized. Frankfurt/Eurex is 1.5h away from my place but the RRT are still not sufficient. People could argue I should focus on “normal” predictive strategies like other retail traider do. But I love programming and optimization, so maybe co-located HFT fits best to my personal trading style. I belive that best results come when people do what they love. How can I find out without trying?
Have a nice sunday.