Interesting article about discretionary trading setups vs. systematic

Aug 3, 2011
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#1
The article is interesting in many aspects, not only about the comparison but also about the points made regarding calculation of performance figures. I think it is useful read.
 

tomorton

Well-known member
Feb 28, 2002
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#2
I was reading the Price Action blog for a while until I realised what Mike Harris had said about market volatility just a month apart -
29/07/16 - Unprecedented Volatility Collapse.
"Unprecedented volatility collapse in S&P 500. The 11-day range is < 0.93%."

30/08/16 - Protracted Low Volatility Is Not An Unusual Phenomenon.
".....In the S&P 500 chart since 1950 it may be seen that the current 36 day period with absolute daily return less than 1% does not even exceed three standard deviations...."
 
Aug 21, 2004
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#3
The article is interesting in many aspects, not only about the comparison but also about the points made regarding calculation of performance figures. I think it is useful read.
The long and short of it is, the long and short of it.

I feel embarrased for all those beginner and intermediate traders who mistakenly believe that trading is all about ID'ing their entry set up, pulling the trigger, then watch their positions do nothing. Nett result = acct bleeds fees, spread and financing. It all stems from faulty thinking, that markets are/do move directionally. The frequency just isn't there. When it does move, it moves from A to B in a flash.

As I've pointed out many times, it's easier to make money taking positions long and short, biasing when required, so that the aggregate position wins out at some point.

Remember the fairground game. You have 3 balls to knock 10 tin cans off the shelf.
Well if you had 10 balls, then you would be really crap if you didn't manage to win the prize.

That's what trading is about.

Implementing a strategy to maximize your chances of turning a profit, regardless of what the markets are doing.