Automated trading versus discretionary trading

This is a discussion on Automated trading versus discretionary trading within the General Trading Chat forums, part of the Reception category; My experience to date suggests automated works well on currencies, due to the nature of the 24 continuous market without ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Mar 23, 2010, 3:30am   #1
Joined Mar 2007
Automated trading versus discretionary trading

My experience to date suggests automated works well on currencies, due to the nature of the 24 continuous market without disruption and manipulation.The indices are in a highly manipulated market with disruptions of intraday closes/wall street opening hours , and restrictions on falls in the indices.

What types of automated strategies would work with indices?

My profitability comes from automation and automated systems.

http://www.trade2win.com/boards/gene...ml#post1084340

Automated trading has loads of advantages whereas discretionary trading has loads of disadvantages.

Advantages
1)No need to monitor markets and watch screen, trades are placed automatically
2)No greed , fear and discipline problems, software doesn't suffer from these problems
3)No money management or positive expectancy shortcomings, MM and PE are precoded in system.
4)No need to look for trade parameters i.e entries, exits ,stops,and trade management i.e tsl , b/e etc is done automatically by software.
5)Can manage multiple strategies,set ups and instruments simultaneously.Sometimes as many as 20 set ups are traded simultaneously , using different systems.
6)Computer does not need to go for no 1 or 2 or breakfast lunch and dinner, and often missing great trading decisions
7)Computer is not distracted by wife, children, phone calls,postman ,neighbours etc
8)operates 24 hours a day without a trade time nap
9)Doesn't require alcoholic beverages during trade time
10) Strategies can be backtested and forward tested without committing real money, only if strategies are profitable is real money employed.
11)highly complex method can be precoded.


Disadvantages

1)Discretionary traders can see a better view of set ups whereas automated trading is limited view based on rules coded .This applies to exits,entries and trade management.

http://www.trade2win.com/boards/gene...ml#post1086248
oildaytrader is offline Trading arcade or proprietary trading company   Reply With Quote
Old Mar 23, 2010, 4:12am   #2
 
N Rothschild's Avatar
Joined Oct 2008
Re: Automated trading versus discretionary trading

"market without disruption and manipulation" man your dumb.
__________________
"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader
N Rothschild is offline   Reply With Quote
Old Mar 23, 2010, 4:47am   #3
 
rathcoole_exile's Avatar
Joined Jun 2007
Re: Automated trading versus discretionary trading

Gens, it's "you're" not 'your'

wot are you, fick or summit ?
__________________
my Opinion is never "humble "

karl6666: 'Why doesnt anybody like you R_E, is it because you shout?'
rathcoole_exile is offline   Reply With Quote
Old Mar 23, 2010, 7:55am   #4
Joined Mar 2007
Re: Automated trading versus discretionary trading

oildaytrader started this thread
Quote:
Originally Posted by N Rothschild View Post
"market without disruption and manipulation" man your dumb.
Not that dumb.

Haven't you ever noticed when really bad news comes out , indices don't go lower,they rally.Christmas time window dressing by fund managers, only benefit is to earn higher bonuses by managers , at a time when markets should be heading lower.

The biggest manipulation was $700bn tarp fund, without it the indices would have crashed to S and P at 300.Oh and all those limit barriers to stop the market falling, but no limit barriers to stop the markets from rising.

Dax wants to go higher at 12 pm . but it can't and waits for Wall street to open.If the currency markets want to go higher , it will just do it without waiting for wall street to open.

You have managers controlling what price the market should be.Try doing that on a trillion dollar a day market, even Goldman would go bust trying to manipulate it.

http://www.huffingtonpost.com/jeff-s..._b_154225.html
oildaytrader is offline Trading arcade or proprietary trading company   Reply With Quote
Old Mar 23, 2010, 12:07pm   #5
Joined Mar 2007
Re: Automated trading versus discretionary trading

oildaytrader started this thread Loads of false breakouts on the Durs in a highly non manipulatable market?



oildaytrader is offline Trading arcade or proprietary trading company   Reply With Quote
Old Mar 23, 2010, 1:40pm   #6
 
N Rothschild's Avatar
Joined Oct 2008
Re: Automated trading versus discretionary trading

quoting jim cramer? you're dumber than i first thought..
__________________
"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader
N Rothschild is offline   Reply With Quote
Old Mar 23, 2010, 1:45pm   #7
Joined Mar 2010
Re: Automated trading versus discretionary trading

Knowing what i know about trading really well. I really cannot see how one could develop a system that does it all for you automatically.

Once you get to the major leagues as a discretionary player, the elite level of trading, the fun is in the fill, & your ability to enter & exit at the right prices for near maximum profits. So why would you want to stop this in order to be some jelly belly flump who sits on the couch watching while their computer do the work.

The art of trading is knowing where to exit & when to enter.
911=falseflagblackop is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Article: Combining Mechanical and Discretionary Trading T2W Bot Educational Resources 41 Oct 30, 2012 2:47pm
Trading Systems vs. Discretionary Trading FTSE Beater Home Trader 27 Aug 22, 2011 10:01pm
Article: Rule Based Discretionary Trading T2W Bot Educational Resources 9 Dec 17, 2010 1:10pm
Newbie asks - Automated or discretionary trading? krispy First Steps 7 Nov 17, 2005 1:12am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)