I can't see how it is possible to turn such a weakness into an advantage. An edge by definition is a probability of a known outcome. How can a model based on pure randomness result in anything but failure over time.
Never tried a Coin flip before?
A roulette wheel is another example.
OK a roulette wheel is a strictly defined house edge.
With trading you have no such luxury due to changing volatility, ATR and volume weighting.
You can either integrate the above into the algo design or go the more simplistic route
of an automated coin flip.
It certainly can work though
Not because of randomness - thats bo11ocks - it provides a consistent reason for entry
that is all.
Its the risk control and trade management that actually make it work.
Anyway, personally pure randomness for me is a bit of a misnomer.
Unless trade duration is closer to swing when entry and exit times may be more random,
Intraday is more likely to work within a more strict framework of market session times.
So there can be quite rigid elements in a "random" system.
None of that is to say its perfect, far from it.
On a trade by trade basis, good discretionary will be more effective, also with drawdown control.
With automation its more of a compromise, if you prioritise drawdown and robustness
as the key primary goals and not profit, its no surprise that returns are lower.
