No Full Algo-Trading Yet

My algorithms still have a degree of discretionary trading about them. By that I mean the algorithm expects a trade at a certain point but the trade is still executed manually, which permits me to get a better price. It matters not if I miss the boat this way as there is always another trade.

A particular algorithm I have recently developed was done so using genetic algorithm to discover interesting facets and then brute force search to complete the optimisation of the areas of interest. I know that the algorithm provides edge at a certain entry point. However, programming the bot to always trade at that entry means that I miss out on the chance of a little extra profit because sometimes the market overshoots where it is expected to go. Because of this overshoot I still enter my trades manually. 

The algorithm is constantly monitoring every race and tells me when any entry has been met. I then look at the spread and decide if I should hold out for a better price. In effect, the entry tells me the absolute maximum or minimum price to trade at so there is no risk of a bad trade. Some trades will go against me, which is to be expected but I cannot blame bad entries as they have been optimised.

I can see a way of creating another algorithm for automating the process of getting a better price than the entry price so there is a possibility that I can update this particular bot to be fully automated. However, I still like to use my discretion. Even financial trading bots in commercial banks have human circuit breakers to act when they sense something is wrong. After all, an optimisation process can only do what is asked of it and no more.

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