Weekly Semi-Automated Bot Results
Monday 23rd January - Friday 27th January
What started off as an unsuccessful week, with a run of consecutive losing trades from the TCC Capital semi-automated trading bot, turned out to be healthily profitable (+16.61%).
Similar to last week, these results have emphasised the importance of our psychology as traders. Below is an example from our Psychology Handbook in The Hub which is very relevant to this situation:
‘Let’s look at a coin toss. We know there is a 50% chance of the coin landing on heads or tails, but what if the coin is tossed a total of 4 times and heads appears 4 times in a row, do you think the next toss is likely to be heads or tails?
The answer of course is that there is still a 50% chance of either. The coin has no memory, the previous coin tosses had absolutely no relevance to the next coin toss. On this occasion, the gambler who loaded his stake up on tails would have lost, and despite his belief, he did not have an improved probability on the next toss to justify a larger stake.
The same principle applies to trading; regardless of the outcome of the previous event or events, there is no influence whatsoever on the very next event. Every singular event is completely independent of one another.
You must fully accept that the very next trade is completely random, a trait that is inherently difficult to comprehend.’
In summary, had we let the consecutive losses cloud our judgement, we may not have taken the next trades which turned out to be winners. We must trust our edge and remain purely mechanical.
The future of trading is with us
Unlike almost every other platform out there, not only are we FCA regulated digital asset managers, but we understand how and why retail traders fail. This is the purpose behind TCC Capital, to separate us from those who are simply selling dreams.