Tactics Trading –new Term and New Approach to a Trading

[oleg 10]

Hi everybody!

 

My name is Oleg.

 

I am a developer of automated trading systems.

 

After many years of trading systems development in the fast changing market I came to the very simple conclusion: I cannot reliably predict chaos and even its statistical boundaries. Technical analysis doesn’t work, because it is based on the history that does not repeat itself and it is always behind the market, AI behind the systems is not working too because there is very little repeating information in the chaos that lays in the basis of self-training and learning.

 

But, I see many different strategies that from time-to-time may produce positive result, perhaps, because they use all of the above and also - strongly defined rules.

 

Unfortunately, the life-time for such systems is very short, because market behavior changes faster than trader is able to formulate new rules.

 

Therefore, I’ve changed my philosophy from strategy trading to tactics trading removing specific rules and instead using three rules below.

 

My new rules:

 

1. I do not predict the market; instead I follow it but very quickly.

2. I am not afraid of making mistakes and taking small losses quickly fixing it by opening opposite positions.

3. I am always on the market following the trend, but I do not even define it (trend), I follow it automatically. My last market entry is always with the trend.

 

Does it sound reasonable? Do you agree with the new term “Tactics Trading”?

 

Please, be tolerant to my generalized statement. In reality, of course, there are many questions and many different solutions.

Edited April 6, 2010 by Soultrader
spam

[sevensa 10]

  oleg said:

3. I am always on the market following the trend, but I do not even define it (trend), I follow it automatically. My last market entry is always with the trend.

 

How do you follow something that you don't define? How do you know then that you follow it?

[sevensa 10]

Oh, nevermind. I see now that you are really here to SPAM.

[oleg 10]

On bar open, using any reasonable signal Up or Down I enter the market and if the signal is wrong I invert position.

[oleg 10]

  sevensa said:

Oh, nevermind. I see now that you are really here to SPAM.

 

I thought, I am dealing with pros ... who at least would be interested in some ideas...

Edited April 6, 2010 by oleg

[Kiwi 16]

Then you should do us a favour and go away if you were spamming us. The ideas you proposed seem very pedestrian and I suspect that all the pros will find them uninteresting.

[oleg 10]

  Kiwi said:

The ideas you proposed seem very pedestrian and I suspect that all the pros will find them uninteresting.

 

Congratulations!

 

You already understood a difference between Strategy and Tactics trading!

I this case let me ask: are you trading on real market?

 

 

Thanks.

[BlowFish 10]

  oleg said:

On bar open, using any reasonable signal Up or Down I enter the market and if the signal is wrong I invert position.

 

This was Eddie Toppels (author of Zen in the Markets, or Confessions of a Zen Trader) approach to trading. Enter the market (direction unimportant), if price goes X points against you, stop and reverse, repeat until 'done'. His whole thesis was that it is ego that is the main obstacle to trading successfully.

[oleg 10]

  BlowFish said:

This was Eddie Toppels (author of Zen in the Markets, or Confessions of a Zen Trader) approach to trading.

 

Thank you Sir!

At lest three people here understand the subject and seems like they agree on the reasonability of the approach!

 

Now, if I may, dear BlowFish, I would like to ask your opinion on the term "Tactics Trading" - I think, usage of the new term will clearly define the approach and separate from Strategy Trading, that in turn will help guys like Kivi and sevensa more accurately target us.

 

BTW: I use very simple multi-timeframe expert system to reduce number of attempts for entry and exit.

[jaygo 10]

  oleg said:

Thank you Sir!

At lest three people here understand the subject and seems like they agree on the reasonability of the approach!

 

Now, if I may, dear BlowFish, I would like to ask your opinion on the term "Tactics Trading" - I think, usage of the new term will clearly define the approach and separate from Strategy Trading, that in turn will help guys like Kivi and sevensa more accurately target us.

 

BTW: I use very simple multi-timeframe expert system to reduce number of attempts for entry and exit.

 

What is it? and how much?

[beyondMP 10]

I would say that "Tactics Trading" is a bit ambiguous, for this approach. "Following", "Trend Direction" or even "EFBO- Enter Following the Trend Only" might be more appropriate.

[oleg 10]

  beyondMP said:

I would say that "Tactics Trading" is a bit ambiguous, for this approach. "Following", "Trend Direction" or even "EFBO- Enter Following the Trend Only" might be more appropriate.

 

Thanks for interesting input.

 

My view is based more on the principle difference because concrete implementation can be other then "Following the trend" approach. (My example was provided to simplify explanation... moderator had removed keywords for more info...)

 

My point was that tactics trading does not have a trading plan behind and therefore much less dependent on market changes.

 

From life forms behavior stand point, tactics trading is the fast adaptation to new conditions in opposite to planning and reaching goals that in turn are formulated based on knowledge and may not be realized because of knowledge failure...

 

"The terms tactic and strategy are often confused: tactics are the actual means used to gain an objective, while strategy is the overall campaign plan, which may involve complex operational patterns, activity, and decision-making that lead to tactical execution." (wikipedia);

 

I think, plan-less approach define the difference. And as you can see, perhaps, sound more appropriate. Isn't it?

 

Thanks

[BlowFish 10]

  oleg said:

 

Now, if I may, dear BlowFish, I would like to ask your opinion on the term "Tactics Trading" - I think, usage of the new term will clearly define the approach and separate from Strategy Trading, that in turn will help guys like Kivi and sevensa more accurately target us.

 

 

I'm possibly the wrong guy to comment I understand the broad idea that strategy - tactics - tasks are hierarchical and so vary in scope. Having said that I never know where one should draw the lines, it always seems rather arbitrary.

 

I think it is important to consistently define your terms. I guess how you get in (and out for that matter) of the market could be considered tactics.

[beyondMP 10]

From your further explanation, I see your point and agree Tactics Trading is the way to go.

[zdo 20]

As others are pointing out, neither of these ( ‘strategic’ or ‘tactical’ ) are exactly great terms in the trading world. This whole thing might be better seen as which direction the ‘learning cycle’ is going in for each.

 

Along those lines, one way to look at it -

a strategic emphasis is one where the methods are imposed on the circumstances and Action is generally applied with comparatively reduced immediate consideration of conditions. For survivability, ideally the singular, less variable actions in a ‘strategy’s’ design accommodates and remains applicable and relevant in as many different conditions / types as possible.

 

a tactical emphasis is one that is applied with comparatively much higher consideration of immediate conditions and to whatever degree conditions are typed or categorized, that is accomplished first before selecting the appropriate Reaction. For survivability, ideally a sufficient number of executable ‘tactics’ are available for all the possible different conditions / types.

 

( Good lord - Who wrote this sht? )

[maxima 10]

Oleg, besides the question about the name... what is it exactly you wanted to talk?

 

And I have question too - have you tested this approach? Does it work for you? What markets, time-frames?

 

Why I am asking - the value of the system is not what other "traders" say but how much money it brought before you finally shut it down.

[oleg 10]

  maxima said:

Oleg, besides the question about the name... what is it exactly you wanted to talk?

 

And I have question too - have you tested this approach? Does it work for you? What markets, time-frames?

 

Why I am asking - the value of the system is not what other "traders" say but how much money it brought before you finally shut it down.

 

Thanks for an interest.

 

And my personal thanks to beyondMP and BlowFish for productive discussion.

I am fully satisfied with the outcome.

 

Now I am more certain in the therm introduced. I hope It'll beocme a standard soon.

 

In regard of approach.

 

Yes, and I do it everyday in real-time, publishing results on the web.

Yes it does

 

E-minis: S&P 500, Russell ,NASDAQ, Dow Jones.

From weeks to 4000 ticks.

 

And finally: as I mention earlier, the strategy trading has very short life-time because it depends on rules and plans. New approach is plan-less and therefore should have much longer life-time and can be easily adjusted to a new market behavior.

That is the beauty of TACTICS trading. That's what I want to highlight.

This is new generation of trading applications.

 

BTW: to moderator

 

I am afraid your boss will never sell this portal because chasing a dime you scared away

serious traders that always are looking for new ideas and, thanks to you, civilized discussion becomes pointless because an author cannot even make a references to the sources.

 

I am truly sorry...

 

Thanks to all.

[Tams 20]

this is what I noticed at the bottom of the first post...

 

  oleg said:

. . . . . . . . . .

_______________________________________________________

Last edited by Soultrader; 04-05-2010 at 11:36 PM. Reason: spam