It can be, but let's start with the uncomfortable part: automating does not create profitability by itself. An automated system with no real edge loses just like you — only faster, cheaper on emotions, and without you having to watch it happen.
Automating is not the edge
Automation is execution. Profitability comes from having a real statistical edge and managing it well. Automating a bad strategy does not fix it: it turns it into a very efficient way to lose money.
The costs that eat the results
Commissions, slippage, spread, real-time data and sometimes a VPS. A strategy that looks profitable in a «clean» backtest can stop being so once real costs are added. That is why the results that matter are the ones that already include those costs, not the theoretical ones.
Backtest is not the same as live
A backtest is a historical reference, not a promise. Overfitting, poor-quality data and optimistic assumptions inflate curves that never show up live. The honest approach is to treat it as a starting point and demand live-account results before believing anything.
How to tell if a system is really profitable
A live-account log, auditable and with the losses included.
A large enough sample, not four lucky trades.
Visible drawdowns: if they hide them, be suspicious.
Past results do not guarantee future results. Anyone who assures you otherwise is selling smoke.
Frequently asked questions
There is no honest number to give: it depends on the system, the capital, the risk taken and the market. Anyone promising a fixed monthly percentage is lying.
No. It is a reference from the past. What matters is live behavior, which can be worse or better.
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Risk Disclosure: Futures and forex trading involves substantial risk and is not appropriate for all investors. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past results are not necessarily indicative of future results.
Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
NinjaTrader® NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products described here, nor has any interest in, or provides any recommendation for the products or services described.
