Summer time. Sunny weather. Vacation. And yes, even some boredom between naps and beers. Maybe it’s time to talk to my robots and see how they feel the Market. Ask them for inflation, recession, the big bubble, Ucranian War, ECB bureaucrats and whatever could affect our equity.
After many years a lot of robots have been coming and going from my portfolios, and more are yet to come. Nowadays I have two sets of robots trading quite well, can’t complain about their performance despite my greed pushes harder. Some of the titular robots are playing for years, some others for just a few months. So we could say that my robots born, grow, reproduce themselves and die. That’s the definition of live! As I heard few days ago on another subject; I don’t say words to them and they never answer me, but we understand each other. So, let’s talk!
Extract of a conversation
- How are you feeling today?
- Well, you know. You could spend some extra bucks to improve the VPS. You would make our lives easier. It’s hard enough to deal our bugged code to suffer a shitty VPS on top
- Yeah guys. You are right. Some extra performance and you will be able to pay the finest Servers, the state of the art, and all that stuff, with your own profits. Of course, you deserve best of the best. But come on! Be nice to me. Let’s chat as a family
- We guess you are interested when we will reach a new ATH
- That’s a good point!
- You see, so predictable!
- True. But our next ATH will be… when?
- You have your backtests. We can’t foresee the future
- Nobody can
- Then look at your backtests: You will see that we can spend more than one year stagnated…
- Dear God!
- … Even worst! Having a Drawdown bigger than 30%
- Enough!! I know the story. I work relentlessly to create a robot team. Low correlated. And what about the Risk management? Those things are looked so carefully. So many hours invested. Sacrificing precious performance to avoid drawdown. Even so: There’s always too much stagnation, too much drawdown, too much unpredictability.
- Don’t be dramatic man. It’s not your style
- Those are sensitive points. Not fair to start a conversation like this
- We have no feelings, we are robots. Remember?
- Right. But some comprehension would be highly appreciated
- Wrong. We just trade. Even with trading we don’t give a shit either we win or lose
- I have the backtests. Most of the time you lose. Less than 35% wining ratio!
- That’s your problem. Change the algorithm. We just trade
- At least you are profitable
- That’s how we are designed. This is how we are. We are made to win money
- Yeah. Now you are talking! … Also, once I find the Holy Grail robot we’ll be able to talk about drawdowns without losing my temper
- There is no such a thing
- Well, that’s what they say
- Indeed. We only trade. Even as a robots we are quite simple. You didn’t bother to include too many rules in our code
- Absolutely not! As few as I could. Don’t believe it’s easy
- How is that?
- Market do not appreciate sophisticated robots
- That explains.
- Explains what?
- The boredom. We are boring robots. As orders enter and leave, signals lightning, trailings up and down. All that excitement on the market! And we just wait and see and do our simple trades, and stick to our trades…
- Yep. That is in your robotic DNA. Don’t expect me to change that
- Boring
- How can you say that? Day in and day out Central Banks talk, or commodities rocket, or some bubble is close to explode. There is more hyteria in the Markets than in a Freud lecture
- This is the excitement that makes us happy
- Not so happy when a whiplash blows the StopLosses
- Ok. Good luck with your Holy Grial then
- Anyways. Always a pleasure talking to you but now I should leave. Trade safe!
- Watch with your Risk Management!
- Always!
