Trade for a Daily Profit Target, Drive a Porsche

I've spoken about trading once a day and then stopping and I have spoken about trading in HFT mode. Today I'd like to take the next step and provide another alternative to consider.

My dad loved casinos. He wasn't a big gambler but he did love to gamble. His thing was roulette. He spent a lot of time in his retirement working on a roulette system. Ultimately, he did come up with a system that regularly made money. Of course it only made money because of his money management rules. The roulette table has either a 1 in 37 or 2 in 38 edge in favour of the casino so the only way you can compete is controlling how you bet - the only thing you can control.

I can use this same money management system in trading.

One of the components of his money management system was to stop playing when he had made a certain number of times his perceived draw down.

What we are doing with Kiki in parallel with the trial of FloBot using a demo account is to data mine our statistics to determine:

1. Is it more profitable to stop trading when a certain profit or loss level is hit every day?
2. Are there times of the day when we shouldn't trade?

The outcome of this could be quite useful. We are thinking that the solution for an electroniclocal is to trade a few markets simultaneously on the basis that we stop trading when a target amount for the day is reached. We have noticed that even on a losing day in our HFT trading model, there is a point during the day that the system was in profit.

The maths could look something like:

We trade 3 different markets with a daily profit target for each of only, say, $200 per contract. This looks as if it's easily doable on our current statistics. If all three markets reach this target then trading each with just a 5 lot would yield a profit of $3,000 a day. Not too shabby. We will need to further study the best daily stop loss for the system so that if a market hit a certain level of loss for the day it would stop trading.

An extra benefit of auto trading is that in these days of 24 hour markets, the volatility and moves in the market I follow may take place during a time zone when I'm asleep or stopped trading. While I am not comfortable leaving FloBot completely unattended, I have no issue with it trading while I am asleep as long as I have both internet and broker disconnects alarmed so I can awake and sort out any issues.

Kiki is a huge fan of this way of trading. She is a huge Nipponophile and would love to spend a year in Japan and she sees this as a way of achieving that. I must admit I am becoming a bigger and bigger fan of FloBot trading as we get deeper into it.

I'd love to get some feedback and ideas from anyone who is interested in going down this road. I think it opens up a trading career for people who may not like or be suited to discretionary trading.