Automated trading versus discretionary trading

[wackypete2]

I see ODT hasn't skipped a beat. I see another ban right on the horizon. Maybe I can take odds...?

Peter

 

[oildaytrader]

ODT, welcome back. We've missed your pointless, ill-informed and redundant comments.

Thank you , and may I add the most important weakness of all mechanical traders , it is the inability to stick to rules of mechanical systems and the same above shortcoming apply to executing mechanical rules.

Its a dead end unless it is fully automated, or others are paid to execute your own rules.

Ha H a H a

 

[BSD]

Now then now then, time for a peace pipe like Frau Sachsen-Coburg und Gotha is enjoying methinks.

 

[BSD]

Actually think I much preferred rathcoole exiles old profile pic, had sthg for it.

Heck, we Germans understand a thing or two about poise, style and elegance.

 

[Black Swan]

LOL reminds me of the BNP being taken to task over their affinity to the royal family and the union flag; "What d'ya think about Prince Charles then eh Nic?" The Usual ignorant, half-witted, loyal, serf-like answer followed..."you do know he's half Greek quarter German then..."

 

[meanreversion]

Thank you , and may I add the most important weakness of all mechanical traders , it is the inability to stick to rules of mechanical systems and the same above shortcoming apply to executing mechanical rules.

As much as it pains me to agree with the Oil man, this analysis of mechanical trading is spot on - the biggest obstacle is the trader; if you second guess the system you will come unstuck.

But wait a minute, what is it they said about giving typewriters to a very large number of monkeys? Or a broken clock being right twice a day?

 

[meanreversion]

LOL reminds me of the BNP being taken to task over their affinity to the royal family and the union flag; "What d'ya think about Prince Charles then eh Nic?" The Usual ignorant, half-witted, loyal, serf-like answer followed..."you do know he's half Greek quarter German then..."

Isn't Clegg foreign?

 

[traderunner1]

Isn't Clegg foreign?

he is a good guy, he is Dutch:cheesy:

 

[Chartsy]

honestly, i think systematically trading alone with no discretion on enrty/exit is a bit dumb, but combining the two can be an effective measure.

For example let's say you backtest inside bars on a stock with 2:1 risk reward,and come up with 80%, now the wrong thing to do is to just trade them blindly because now the 'probabilities are in your favour', better to uset he inside bars as a way to enter when you think it's headed one way or another....

 

[oildaytrader]

honestly, i think systematically trading alone with no discretion on enrty/exit is a bit dumb, but combining the two can be an effective measure.

For example let's say you backtest inside bars on a stock with 2:1 risk reward,and come up with 80%, now the wrong thing to do is to just trade them blindly because now the 'probabilities are in your favour', better to uset he inside bars as a way to enter when you think it's headed one way or another....

The biggest difficulty is discipline to follow any method, with either mechanical or discretionary.If trader's can't follow mechanical systems , how can they follow a discretionary system or a mechanical system with discretion?They are more likely to botch up with any discretionary element.

How do we solve the problem of discipline to follow mechanical systems?One solution is to sit and do nothing and let robots trade for you, second solution is to hire assistants to trade mechanical rules.Trading assistants who follow mechanical rules and execute them , can cost around $3,000 a year in places like India.Just a thought.

 

[megamuel]

he is a good guy, he is Dutch:cheesy:

His mother is Dutch. His father English and he was born in England too. So I'd say he's English...

 

[BSD]

LOL reminds me of the BNP being taken to task over their affinity to the royal family and the union flag; "What d'ya think about Prince Charles then eh Nic?" The Usual ignorant, half-witted, loyal, serf-like answer followed..."you do know he's half Greek quarter German then..."

 

[montmorencyt2w]

Actually think I much preferred rathcoole exiles old profile pic, had sthg for it.



Heck, we Germans understand a thing or two about poise, style and elegance.

Come to think, perhaps we should hand our railways over to the Saxe-Coburg-Gothas; at least the trains might run on time.

 

[BSD]

Haha lol fraid that wouldn't help much as we don't quite manage that either !!!