Silicon Valley Low Frequency Algo Trading Meetup The

Disclaimer : Jiang (Allan) Loo is not a CFP, CPA or a CTA or

Apache Room – Where Wise Traders Meet and Train "SVLF Algo Trading" Tue, Feb

The Basics of Algorithmic Strategy Trading (session I) • Part 1 : Introduction to

The Basics of Algorithmic Strategy Trading (session II) • Part 9 : Chart Analysis

Introduction to Trading 1. Four Asset Class to Trade – Equity/ETF, Options, Futures, and

11. Reference Material -- ireallytrade. com >> LWU (Larry Williams University) "SVLF Algo Trading"

Actress Michele Williams (Daughter of Larry) Won The World Cup Of Futures Trading Award

If Michele Can Do It …. . So Can We Most “Smart professionals” Just

How the "Market" works ? I. "Market" is "Fair and Level" -- use T/A,

"SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan

Different "Styles" of Trading What's the "Bottomline" ? I. III. IV. V. VI. Level

Design Rules : "Algorithmic Trading System" • First Thing First -- Concrete Design Rules

Tradestation Trade Graph Shows (Drawdown P/L) the entire “Price Journey” of all the Winner

Use Tradestation's Analysis Tool (Trade Graph >> Drawdown P&L) to unveil the ugliness of

Slides: 21

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Silicon Valley Low Frequency Algo Trading Meetup The Basics of Algorithmic Strategy Trading 自動交易印鈔機(期貨) Jiang (Allan) Loo Contact: Apacheroom@gmail. com "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

Disclaimer : Jiang (Allan) Loo is not a CFP, CPA or a CTA or an investment advisory service Silicon Valley Low Frequency Algorithmic Trading Group (SVLFAT) group is NOT an investment advisory service, nor a registered investment advisor and does not purport to tell or suggest which securities you should buy or sell. Speakers may present trading ideas that have worked for them; but, the SVLFAT group does not endorse any specific trades or methodologies. There is a very high degree of risk involved in trading. You may lose some or all of your money. Before using information obtained at our meetings you should carefully consider the risks and suitability for your own trading. Historic performance is NOT indicative of future trading results "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

Apache Room – Where Wise Traders Meet and Train "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

The Basics of Algorithmic Strategy Trading (session I) • Part 1 : Introduction to Trading • Part 2 : How the "Market" works ? • Part 3 : Different "Styles" of Trading -- What's the "Bottomline" ? • Part 4 : Designing an "Algorithmic Trading System" • Part 5 : Select the "Right Tools for The Job" • Part 6 : Define your "Specific Performance Objectives" • Part 7 : Pick the "Right Animal" (Symbol) to Trade • Part 8 : Examples of Algo Trading -- (A 21 and A-23 and A-28) "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

The Basics of Algorithmic Strategy Trading (session II) • Part 9 : Chart Analysis -- Zoning (Uptrend, Downtrend and Sideways) • Part 10: Coding The Algos > Debug Program >Refine Algos • Part 11 : Critical Path (The Only Job) -- To Remove "Big Losers" • Part 12 : Repeat the Process until Performance Objectives are Met • Part 13 : Algo Backtest, Rolling Forward Test (WFO), Monte Carlo • Part 14 : Run Algo Strategy in "Simulation Trades" • Part 15 : Run Algo Strategy in "Live Trades" • Part 16 : Examples of Algo Trading (more) -- A 21 and A-23 and A-28 "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

Introduction to Trading 1. Four Asset Class to Trade – Equity/ETF, Options, Futures, and Forex 2. Each Trade has a "Winner >> Predator" and a "Loser >> Prey/Victim" 3. No Social Moral, No Service or Contribution to Society (Yes-Adds Liquidity) 4. Trading is a "War Zone" -- Out to Destroy The Other Side of the Trade 5. Reality -- Traders Destroy their "Worst & Only" Enemy First (Themselves) 6. Three Levels of (Time Period) Trading -- Position, Swing and Day-trade 7. Day-trading Futures is "Level 4" >> "Highest Risk=Highest Reward" Algos 8. Trading Futures Requires "All Cash, No Margin Borrowing" (Yes-Margin Calls) 9. The Futures Charts are identical to Stock Charts -- except it's 24/5 (Sun-Fri) 10. In Day-trade -- Must Think "Out-of-the-Box", Know "How the System Works" "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo 11. Reference Material -- ireallytrade. com >> LWU (Larry Williams University)

11. Reference Material -- ireallytrade. com >> LWU (Larry Williams University) "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

Actress Michele Williams (Daughter of Larry) Won The World Cup Of Futures Trading Award At Age 17 (1997) 11. Reference Material -- ireallytrade. com >> LWU (Larry Williams University) "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

11. Reference Material -- ireallytrade. com >> LWU (Larry Williams University) "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

If Michele Can Do It …. . So Can We Most “Smart professionals” Just Won’t Accept Something “Simple and Easy”…. . (Not Wise) "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

11. Reference Material -- ireallytrade. com >> LWU (Larry Williams University) "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

How the "Market" works ? I. "Market" is "Fair and Level" -- use T/A, F/A, Q/A, A/I, P/R as analysis tools II. 'Market" is "Rigged and Manipulative" -- Nothing works, Trade with the "House" >> Analyze the House Footprints >> Mimic the House Super Algos III. Since 2007, most markets are controlled by "Dark Pools" and "Ultra-HFT" IV. Facts -- UHFT trades 60, 000 times/min (Dark Pools = invisible big blocks) V. Facts -- 3 Big Banks (Proprietary Trade) make $1. 5 B a day, preying on retail VI. Facts -- 3 Big Banks installed their Servers (Right Above & Below Exchanges) VII. Conventional (Old school uses Math and Science) Methods cease to work VIII. However, the Old Methods still work fine with Log-term and Swing Trades IX. For Day-trading -- Trader must deploy Automated Algo program trading (24/5) "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

"SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

Different "Styles" of Trading What's the "Bottomline" ? I. III. IV. V. VI. Level 1 -- Long-term Position Trade (lasts a few weeks to a few months) Level 2 -- Swing-Trade (lasts a few days to a few weeks) Level 3 -- Short-term Day-Trade (lasts a few mins/hours, 3 -10 trades a week) Level 4 -- Day-Trade Futures (lasts few mins/hours, 3 -9 trades a week, 24/5) Level 5 -- Day-Trade Futures (lasts few mins/hours, 10 -20 trades a week, 24/5) The Bottomline of all "Styles" is to "Make Money Consistently", seeking the Highest ROI "Return-on-Investment", as frequent as our life-style can tolerate VII. One Thing for Sure -- We're NOT into "Re-inventing the Wheel". . spinning time and effort into Math and Science, which are no longer relevant in the Market Environment -- being "Totally Manipulated by Big Bank’s Algo Programs" VIII. The Preferred Solution -- follow the programmed "Footprints of The House" "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

Design Rules : "Algorithmic Trading System" • First Thing First -- Concrete Design Rules : • Rule 1 -- All Algos must adapt quickly to "Trade in Both Directions" • Rule 2 -- Trade with (24/5) Automation Platform, Never Miss a Trade • Rule 3 -- Trade with "Logical Exit Algo". . . Never Use "Stop Loss Amt" Be "Stealthy" -- Avoid being Pinned by UHFT, plus "$Stop Loss" are The Biggest "Winner Killer" (See Graph below for Demo) • $Stop Loss is the number one "winner" killer, most "supposed-to-be winners" would be "killed by "$Stop Loss", and potential winners will turn into big losers. . . a "double whammy" • Without writing a program to back-test, "the devastated consequences of using Stop "SVLF Algo Trading" Losses" would not be revealed. (That's what the Big Bank’s UHFT wants) Tue, Feb 20, 2016 (4 -7 pm) Apache Group – Allan Loo

Tradestation Trade Graph Shows (Drawdown P/L) the entire “Price Journey” of all the Winner Trades (in Green Vertical Lines) – How The Winners get Intercepted by “$Stop Loss” and get “Destroyed” "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo

Use Tradestation's Analysis Tool (Trade Graph >> Drawdown P&L) to unveil the ugliness of using "$Stop Loss" (most traders do !! ) : • Case#1(Stop-Loss=$400) --- (23 more losers, 23 less winners), Damage=($400 x 23)+($360 x 23)= <$17, 480> • Case#2(Stop-Loss=$600) --- (17 more losers, 17 less winners), Damage=($600 x 17)+($360 x 17) = <$16, 320> • Case#3(Stop-Loss=$800) --- (9 more losers, 9 less winners), Damage=($800 x 9)+($360 x 9) = <$10, 440> • Case#4(Stop-Loss=$1000) --- (7 more losers, 7 less winners), Damage=($1000 x 7)+($360 x 7) = <$9, 520> • Case#5(Stop-Loss=$1200) --- (6 more losers, 6 less winners), Damage=($1200 x 6)+($360 x 6) = <$8, 640> • Case#6(Stop-Loss=$1400) --- (4 more losers, 4 less winners), Damage=($1400 x 4)+($360 x 4) = <$7, 040> • Case#7(Stop-Loss=$1600) --- (2 more losers, 2 less winners), Damage=($1600 x 2)+($360 x 2) = <$3, 920> • Case#8(Stop-Loss=$1800) --- (0 more losers, 0 less winners), Damage=($1800 x 0)+($360 x 0) = $0, 000 "SVLF Algo Trading" Tue, Feb 20, 2016 (4 -7 pm) Apache Group - Allan Loo