Daniel Fernandez is a fully automated trader. He executes more than 2,000 strategies at a time that makes him reasonable profits. What’s mind blowing is, he loses on a lot of trades but wins big on his winners which offers him the luxury of trading full time.
Introduced to trading by a friend from high school, Daniel was challenged by the opportunity trading can bring. He studied Chemistry in University, and this gave him an advantage which he was able to apply to his algorithmic trading strategies.
In this podcast Daniel shares:
- The perks of having a fully automated system
- How you can run more than 2,000 strategies on a $500 account
- Why reading books on trading did not really work for him
- Which trend following strategies gave his trading a jump start
Is anyone else confused about the signal in the FX Trader magazine article? So for EUR/USD, you’re taking the latest open price and comparing it to open from 40 days (bars) ago. If latest is higher, then open a long trade (or move stop loss if in a long trade). If the price is lower, then short or move stop loss.
Does this mean a new signal is generated every day? Let’s say on day one, the latest open price is 100 and the open from 40 days ago is 90. We enter long and put a stop loss at ATR-20. Now, day two and the price is 101 and the 40 days ago open price is 92. This is a long signal, but we are already long, so move the stop to the current ATR-20. Day three, latest 103, 40 bars ago 96. Move stop loss to new ATR-20, etc. etc.
So it seems like every day you are doing something, whether it’s entering a new trade for the first time, moving your stop, or close and reverse. Is this correct or are there days where there is no signal? Are there times where you are not in a trade?
Thanks Boosty, I’ll see if I can get Daniel to answer.
Hi Boosty,
Thanks for writing. Yes, you’re always doing something every new daily bar. You are either always entering a new trade, updating a stoploss or closing a trade and entering a trade in the opposite direction. This is a consequence of the very simple signal logic. Let me know if you have any other questions about the strategy,
Best regards,
Daniel