Automated Trading Strategy #3
Strategy #3 continues to be one of the best strategies in the portfolio.
Important: There is no guarantee that ATS strategies will have the same performance in the future. I use backtests and forward tests to compare historical strategy performance. Backtests are based on historical data, not real-time data so the results shared are hypothetical, not real. Forward tests are based on live data, however, they use a simulated account. Any success I have with live trading is untypical. Trading futures is extremely risky. You should only use risk capital to fund live futures accounts and if you do trade live, be prepared to lose your entire account. There are no guarantees that any performance you see here will continue in the future. I recommend using ATS strategies in simulated trading until you/we find the holy grail of trade strategy. This is strictly for learning purposes.
As a quick reminder, we’re on the hunt for the holy grail of automated trading strategy. If you have any questions, start with the FAQs and if you still have questions, feel free to reach out to me (Celan) directly at AutomatedTradingStrategies@protonmail.com.
“There are a million ways to make money in the markets. The irony is that they are all very difficult to find.”
-Jack Schwager, Market Wizard book series
Jesse Livermore, the legendary trader, once said he could feel market rhythms in his bones! Modern strategies seek to capture that same essence, but now it's algorithms that feel the beat.
The systematic approach created with Strategy 3:
Scans the tape
Reads price action
Makes the call—bull or bear, long or short
Executes with precision
Like the old tape readers who could spot patterns in ticker tape, this system reads market character and acts accordingly.
Originally published in 2021, this strategy continues to be one of the best performing strategies today. In fact, it is the foundation of Strategy 93.
Let’s get into it.