What Does "Autopilotrading" Means? 👶🏻

In my previous article (Your Strategy Killed By My System) I talked about how building trading strategy based on systematic methods is the only successful why to have consistence performance in the market, trading in the stock/Forex or any financial market with strategy based on some patterns or some specific structure that you should wait to happen in order to make a trading decision whether if you going to buy or going short is kind of Technic coming from old school, I'm telling you that according to the current situation, look around you, In every inch you'll see some kind of tech, the world has changed, the way people think has changed, the way we invest and trade is not the same, the new changes in the planet and how the world has been developed all these yeas puts us in small old nasty locked box, and the only way to survive in the market and get out is, to think out of the box and release our imagination and hold the hand of the technology to help us thou this, because the technology today has the advantage on us, If you could understand it and have the possibility to work with it, your results will switch 360 degree.

Let's Identify The Problem 🤔

The real issue of the most of new traders today is believing that when they study books and sources that is 50 and plus years old, is going to help them to identify and understand the current market, there's no doubt that the price action is still the same, the market movement haven't change, it's still moving up and down and flat, and all the biases did not changed from the early days of the financial industry, but what has been changing all these years is the mentality of the humans, the tools of the traders, the way investors think to identify the future market movement, the way we trade, my point is the concept of trading is still the same but the scenario has changed.

The changes that occurs to the scenario has make the market move complex and difficult to recognize its futurist moves, and why is that? because in the beginning we used to making everything handle, the way 'Warren buffett' was analyzing the market has changed, it become more smarter than it was before, thanks to the technology, the way 'Ray dalio' identify and analyze the economy has changed and developed, thanks to the technology;

In my beginning of learning in order to become better investor and trader I used to read 2-3 books a week, and I spent almost 2 year reading and reading and reading but deep inside I was feeling something hasn't change, I wasn't feel that I'm getting better or I've been discover new information's, I thought that the problem in me, but I wasn't confessed so I researched and jumped from site to site and from YouTube video to other, and at the end I discovered the reason why,

Based on my research I found that the problem wasn't on me, it was in the books, I found that a lot of people on the internet was saying that books has no value, I couldn't understand this at first but with time I got it, (has no value) doesn't mean that book are worthless, but the problem with trading/investing book that they are share the same kind of information's, they're all trying to teach us the same kind of information but with different styles and ways, some books are present the information in an easy concept, and other books cover the same information but in difficult concept.

So, What's The Solution 🤷🏻‍♀️

An Autopilotrading is a system used to control the trajectory of an indicators, oscillators without requiring constant manual control by a human operator. Autopilotrading does not replace human operators. Instead, autopilotrading assists the operator's control of the trading positions, allowing the trader to focus on broader aspects of positions, there's many types of traders around the world and everyone has different type of trading style, but I want to talk about 2 specific types that are the most common:

• Traders who place a trade based on some specific pattern or price action or news/event

• Trader who place a trade based on the same kind of price action associated with autopilotrading

Now, both of these types of traders doing a hard work when it comes to identify the good trading opportunities, but my main point here is who's more smarter then the other? the first type or 2nd? to answer this question we need first to understand both concepts;

the 1st type of traders who place their positions based on specific price action or pattern is kind of old school Technic, of sure it's still valid and it can be relay on it for long-term consistent results, but the problem of this type of traders, is that they waits the market to do something in order to react and do the opposite,

imagine with me, double-bottom after a huge selling-off movement, then price breaks above the neckline, what do you think? should you buy now?

Old school traders will see this as an opportunity to go Long (with extra confirmations) because they know this pattern very well, they have that experience that can be relayed on when it comes to price action and patterns;

The 2nd type of traders who place their positions based on market circle's having more stable and consistent trading system, In my previous article (Your Strategy Killed By My System ) I wrote "in order to make a trade based on a strategy, you'll need all the strategy requirements to be valid (in other word you need to have all off your confirmations) because every confirmation you get will add +% possibility on the potential of winning in a trade, meaning, if you have 5 confirmations as requirements for your strategy, every 1 confirmation will = 20% potential, if you got 3 confirmations of 5 that's means your trade have 60% potential to be wining trade and here where we fall into more problems such as:

1. Discipline problems (when you decide to take the trade without fully confirmations)

2. Patience problems (when you have FOMO)

And more problems that will to effect on you performance as trader, applying a trading strategy has a lot of risk involved on it because it's runned by humans emotions. "

The market is moving today in a way that we have not experienced before, because of the technology that was developed to take an active role in dealing with the trading operations that take place in the money market in an instant and fast, no individual or company trader can overcome the market potential without the help of the latest technology, no An old school can survive today under these new pressures. The only solution to a profitable strategy is to try to integrate basic knowledge of the money market with some modern business algorithms.

Summary 🤗

"Every action has a reaction equal in magnitude and opposite in direction", Unfortunately, this sentence cannot be applied in stocks or Forex, because the match that takes place in the field between human traders and robots is unfair, so today it is important to look at other dimensions and try to understand how to build a trading system that may be closer to the automatic pilot who can He has a market analysis and is relied upon to conduct trading operations based on advanced algorithms and systems. Change the way you think, to change your results.

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🙋‍♂️ Written by: @itsFiras ┊ 2/8/2020 - 05:16PM

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