A Jack of Small Trades

I realize now that I don't trade anymore.

I assess the market conditions and I deploy Sceetos, and then I forget about the Sceetos.

The Sceetos do the trading on my behalf.

It is much easier this way.

David Robertson just published an amazing article, "Artificial Intelligence Or Real Stupidity?" in which he unbuckles the crux of where applied artifical intelligence is today.

What really piqued my interest in this article, is when David's writing moved on from artificial general intelligence (AGI) to the topic of 'Augmentation'.


Augmentation is a topic near and dear to my heart because here at Sceeto, I think that this is what we do with our own trading by augmenting trade execution and order flow analysis with bots, and ultimately what we are bringing to the trading community.

Robertson does a great job of collecitng informtion from some important scientists in this field.

From the article:

Another common thread among the AI researches is the belief that AI should be used to augment human labor rather than replace it.

Cynthia Breazeal, Director of the personal robots group for MIT media laboratory, frames the issue: “The question is what’s the synergy, what’s the complementarity, what’s the augmentation that allows us to extend our human capabilities in terms of what we do that allows us to really have greater impact in the world.”

Fei-Fei Li, Professor of computer science at Stanford and Chief Scientist for Google Cloud, described, “AI as a technology has so much potential to enhance and augment labor, in addition to just replace it.”

James Manyika, Chairman and director of McKinsey Global Institute noted since 60% of occupations have about a third of their constituent activities automatable and only about 10% of occupations have more than 90% automatable, “many more occupations will be complemented or augmented by technologies than will be replaced.”
 

Further, AI can only augment human labor insofar as it can effectively work with human labor.
 

Barbara Grosz pointed out, “I said at one point that ‘AI systems are best if they’re designed with people in mind’.” She continued, “I recommend that we aim to build a system that is a good team partner and works so well with us that we don’t recognize that it isn’t human.”

David Ferrucci, Founder of Elemental Cognition and Director of applied AI at Bridgewater Associates, said, “The future we envision at Elemental Cognition has human and machine intelligence tightly and fluently collaborating.” He elaborated, “We think of it as thought-partnership.” Yoshua Bengio reminds us, however, of the challenges in forming such a partnership: “It’s not just about precision [with AI], it’s about understanding the human context, and computers have absolutely zero clues about that.”
 

It is interesting that there is a fair amount of consensus regarding key ideas such as AGI is not an especially useful goal right now, AI should be applied to augment labor and not replace it, and AI should work in partnership with people. It’s also interesting that these same lessons are borne out by corporate experiences.


The evolution of using computers to augment human activity, as opposed to entirely replacing it, is what is acheivable today...and what is already in production via our trading bots, aka Sceetos (Self-Contained-Electronic-Exchange-Trading-Orbs).

Questions:

What is SCEETO measuring?

Relative change in:

Volatility?
Delta?
Absorption?
Order flow rate of change?
What else?

Answer:

Sceeto, and the order flow algorithms have continue to grow and evolve.

They measures a lot of stuff.

What is important is not so much the measurements, but rather, why and how is the output of these measurements relevant for out trading?

The outputs that I focus most on are:

1) Conclusionary Order Flow - This tells me that traders are trapped.  I am becoming more and more of a stickler for only deploying Sceetos when there is forensic evidence that a material amount of traders are trapped.  Their 'trappiness' provides a push in the price discover process.  We use Tape Meter, Engulfing Sweep, Book Pressure and Sweep to help us determine this.

2) Significant Imbalance Between Supply & Demand - After we see that traders are trapped, we then want evidence that the supply/demand balance is out of whack.   We use Book Pressure and Sweep to help us determine this.

3) The Right Side of the Market, Price Action, Market Structure, and Room to Run - I am going a little out of order here...these items must be all known and checked off on my check-list before I determine that the market conditions are viable to trade.  If I don't have a handle on any one of these items, then I do not have a clear enough market advantage to warrant risking capital by deploying any Sceetos.

I hope that this answers your question....if not, just let me know and I will expand.


Hi Traders,

This is an open workshop for SceetoBot for Sierra Chart traders, NinjaBots for NinjaTrader traders, or anyone who is interested in being able to pro-actively deploy order-flow powered trading bots in order to get ahead of the pack, lower their stress levels, and free-up their time.

This 'Ask-Me-Anything' workshop will be interactive so please feel free to come armed with setups questions, order flow questions, configuration questions, trade management questions, etc.

Ask-Me-Anything Event Info:

NinjaTrader - Order Flow Sceeto AMA

Fri, Mar 15, 2019 12:00 PM - 1:00 PM EDT

You can register for the event here.

If you have any questions, please feel free to reach out to me here.

P.S. - Time permitting, we will review our new Breach Bots.  

All the best,
Carl

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