19 Feb Update on the 2020 Robot
Update on the 2020 Robot
Feb. 19, 2020
I have a couple of important goals this year.
First, I want a system in place that’s robust.
We hear this term all the time. Let’s explain exactly I mean by “robust”.
Robust, to me, means we don’t have to worry about it.
It’s going to perform. It’s going to produce profit. And it’s guaranteed.
It won’t make millions of dollars all the time, but it’s something we can hang our hats on.
For example, what’s considered the most robust system out there right now?
What is the system that regular people have piled trillions of dollars into because it’s “guaranteed”?
Answer: index funds.
That’s what most people think is robust.
The market (S&P 500) goes up and it goes down. But, say it together with me, the stock market always goes up over time.
The problem is: 1) Research shows that market can not go up for decades at a time; 2) Even when it does go up, the payoff is lousy!
Eight percent per year with multiple 50% drawdowns is not great, at best.
Which leads us back to my first point.
I want to track a robust system that beats the market and beats it by a significant margin.
Then I want to watch (and post) the results to see if it is robust (and if it’s beating the market).
And then I want regular people to have a better option than just Index Funds.
I want all of us to be able to grow our money. That’s why I write this free newsletter and why I do my research every day.
I want something better for all of us.
The second goal I had for this year was to build a robot for one of the readers of the Newsletter. I was hoping to have this done by January 31st.
Happily, I got a lot of robot suggestions. I enjoyed reading all those emails.
But I ran into a problem.
Almost all of the robot submissions had a little discretionary element to it.
There’s nothing wrong with that. But I wanted the Reader Robot to be 100% automated this time. Completely automated can be repeated by anyone. A discretionary element means someone might win while someone else loses. If one trader discretionarily does one thing while another trader does something else, I’m not helping everyone the same way.
The other problem I had with the robot suggestions was that some aspects weren’t able to be built easily for MT4. It was either very difficult or very expensive.
So, I don’t have a Reader Robot to build at the moment. But I’m going to do a small surprise for everyone who took the time to write me with robot suggestions. I really appreciate that.
In our next email, we’ll talk about what I am going to do this year and what we can track. I need something in place ASAP.
Talk to you soon.
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