which way round is the risk
Can I ask why this would be?
Surely, if one can find an inefficiency in the markets and carry out sufficient backtesting to ensure that it can be potentially be exploited then surely a mechanical system would be a better approach, as it would ensure that those rules are consistantly followed??
I would agree that a discretionary Trader would probably develop more in-depth skills and probably have a better "feel" for the markets but isn't there also the risk that other factors such as emotions can have an impact on his/her's trading??
Just interested....
Hi Chorlton
I think the risk is the other way round :?:
Would you allow an air line pilot discretion to land the plane (switch over from Auto) if he thought it was justified
Have you ever run a red light late at night when you can see its clear both ways and the lights have got stuck
Switched off the auto wipers on your car because they squeek the windscreen (not enough rain
)
Backtesting = logic in it :?:
benefit to build a method, but an edge for all conditions
I trade with absolute discretion in a system like way, I am required to work within a % of normal I guess
Emotion creeps in, its part of life, you learn to recognise this quicker and act accordingly or you will be wiped out.
Your on your 3 rd trade of the day
STOP THINK = I only average 1:5 per day = whats going on, am I ....... whatever = experience.
If you rely on a system and I guess there are plenty who do and who are far better traders (money won) who have retired rich and not been really tested, so what they took the risk IMO and it payed off
for them, same as the hoards who bought shares in the early eighties and sold them just before the crash in 87 because they were going on holiday or some other random reason.
The point = you are handing control over important decisions to a rule based method, so the rules had better be good. An ordinary engineer is a very skilled man and can make a good living anywhere in the world.
A toolmaker is the next division up
and we do not produce them, not everybody can be one, it takes ....................the whole nine yards of effort and some.
My granddad was such a man, he tried to enlist at the age of 13, he was already a skilled wireless operator (self taught)(world war 1)
lucky:clover: for him they turned him down. later in life, some of the machines he set up and maintained and kept running built and kept in the air the avro Lancaster and then the Lancaster.
Each to their own but its not for me, I no I am not clever enough to build such a system and let it trade its self. I no there are filters and extreme models, back testing every possible outcome etc etc
At the end of the day I think
ITS ONLY AS GOOD AS THE MAN THAT BUILT IT
For what its worth
I think to build a really good system you need a full discretion trader to work with an individual who is or does excell in the field of errrr setting it in a program
I am not sure the two go together or exist in any one individual, I like to trade, I like the percieved skill and control I think I exercise, I think or no from results I can keep drawdown to a minimum because of the selective/discretion I exercise.
I am sure the reverse is true for strict method only mek systems.
You can build a pretty good table or car from a simple manufacturing process (fully auto & bored workers)
I do not think you will build anything that will last or stand the test of time and have true worth.
Any really good system traders (average returns / not loss) want to work with a full discretion trader and see what happens :?: it might be :clap::clap:
Teamwork, thats how we got this far, maybe we can go a little further
Hey ! whats that :?: "the moon"
Lets go
:clap:
