Discretionary trading back in fashion

Solas0077

Active member
235 11
After a long period of automated strategy dominance I think discretionary trading is coming back to fashion. What do you think? I think that automated failed to deliver and people are going back to traditional methods with discretion.
 

nnash

Junior member
15 4
Not sure how you come to this conclusion. 80% of the volume in the US and 70% of volume world wide is algorithmic.

In general for anything:
"Algorithms beat individuals about half the time and they match individuals about half time. There are very few examples of people outperforming algorithms in making predictive judgments. So when there’s the possibility of using an algorithm, people should use it. " -- Daniel Kahneman

Most discretionary trading is just poorly defined algorithms anyway.
 

fibo_trader

Experienced member
1,305 23
After a long period of automated strategy dominance I think discretionary trading is coming back to fashion. What do you think? I think that automated failed to deliver and people are going back to traditional methods with discretion.


It never ever really left for the few of us that persisted. No more than a few dozen remaining worldwide. When we see or meet each other, recognition is instantaneous and friendship and kindred spirit a given.

Soon other masses of robots will be along and they'll kill it off for good. I came to see the machines once, nothing mattered no more, not the money not the Land not the women, I knew now finally they would tell me what they were after. Their reply, "only at the point of dying"

That's when I got on my horse, packed my bedroll and coffee and beef and rode out ALONE into the wilderness. Life as we know-ed it, was over.
 

new_trader

Legendary member
6,212 1,267
Algo schmalgo!

To be successful in trading/investing you need to understand the relationship between supply and demand...the LAW of supply and demand! This law doesn't change whether it's billion dollar algo systems or human beings.

I don't subscibe to any of Mike Norman's services nor to I believe in his idiotic economic theories, but I agree completely with his philosophy about trading and investing.

Why we beat algo traders
 

morpher_dot_com

Newbie
3 0
Look, I see why people might think that discretionary trading has it's advantages, and a lot of the time I would actually tend to agree, however it's in execution that you have to introduce a systemic element that takes you away from a purely discretionary strategy. For instance; you may have an idea that came about by discretionary means, but you have no shot of executing it without introducing systemic methods that will ultimately alter the way you conduct the trade. Liquidity is a very big issue especially if you're trading at volumes. Imagine if funds adopted fully discretionary methods, they would get screwed over in orderflow every time.

To be honest, I like discretionary trading a lot. I've been doing it a lot even at big volume on my platform. It's funny, when someone is presented with infinite liquidity you'd assume they trade systematically only and at high frequency, but most of our traders (albeit we're still in our alpha with paper trading) actually trade with discretion.