This website was launched in February 2010, and the blog has been used to illustrate trades taken using the TradeOnAUTO software.
For the first two years, until the end of January 2012, we traded a small, live account, starting with capital of $5000. We succeeded in growing our capital by over 60% during that period, publishing actual statements to verify that claim.
However, TradeOnAUTO is not a black box system, so anybody using the TradeOnAUTO Professional software can trade an almost infinite variety of strategies and combinations. Therefore, the results published in this blog are always specific to our own account and the strategies that we chose to use.
With the launch of TradeOnAUTO Professional – Version 2 at the end of January 2012, the format of the blog has been changed. The results shown are now the results of trades run in an Interactive Brokers’ paper trade account, which gives almost identical results to trading in a live account, taking trading costs like brokerage fees and slippage fully into account.
The benefit of this is that we can now follow 8 strategies each trading day, which will give a more varied appreciation of what can be done with the software.
The paper trade account started with a capital of $100,000. However, we use TradeOnAUTO’s facilities to allocate a portion of this to each of our trades. For example, in our WHEAT_TRADER strategy we have 15% of capital allocated to the trade.
Clients purchasing TradeOnAUTO Pro will receive the product with the blog’s strategies pre-configured in the strategy library. They can then compare their results with ours as they learn how to use the software. As time goes on, we fully anticipate that they will develop their own strategies, starting from scratch or by modifying the ones we have provided.
I have always encouraged traders to focus on taking just one trade each day. This philosophy has not been abandoned, but we are now showing one trade taken in a number of different markets. (In some cases we use a combination of two trades around a single trigger point – this utilises the new facilities in Version 2 to enter a reverse trade if our initial trade fails. We regard this as a single trade.)
Clients with small accounts would have insufficient margin to trade so many strategies, but those with large accounts might choose to follow a similar approach – diversifying across markets and strategies.
As well as publishing daily trading results, there will be a series of articles explaining the trading philosophy behind TradeOnAUTO. The objective will be to educate traders in the art of day trading (as we see it!) and provide some tips on how TradeOnAUTO can be used to achieve various objectives. For your convenience, all blog entries containing an article will be grouped under the “Articles” category.
We hope you enjoy the TradeOnAUTO blog!