I get all my best system rules from discretionary traders... LOL Dennis
On Aug 18, 2008, at 6:54 PM, wooziwog wrote: > Merrill - a great symbol to watch for market sentiment when trading > the S&P! > I have read many posts on this board and I have come to believe that > there are some people on this board that have achieved success > through the use of system trading. I trade the S&P e-mini's > (discretionary) and occasionally trade other future contracts if I > see a setup that presents all of the elements of a great trade. I > consider myself a "specialist" since I focus on the S&P. I have > reviewed some of the "E-Mini S&P trading systems" and after reviewing > the "Actual" or backtesting results have not seen any as of yet that > I would be able to trade for two reasons, the first is putting my > trading capital at risk with something that has some degree > of "unknown" and "trusting" that all things will work to my > advantage. I am also suspicious of the system vendors. If a system > can perform with excellent results why is it being offered to John Q. > Public? If I had an "automated system" that generated awesome > returns I would not want to be bothered with being on call for anyone > that has purchased my "system". If I cannot achieve excellent > results why would I buy it? Which brings me to the final conclusion - > I trust my experience, judgment, discipline and risk management > skills - it took years to become somewhat proficient so why try to > write it in code and remove me from the equation? > I know that I would screw up any off the shelf system simply by > overriding the system at critical periods - my lack of trust in > something unknown would guarantee my failure. > In the end I will tip my hat to those that have the talent to develop > an automated system that fits into their comfort zone and conforms to > their style. I believe there is enough space in the trading universe > for both system and discretionary trading. My comfort in competing > with any system is one thing - humans had to design it and provide > the code to generate the buy and sell signals. I will stay with > discretionary trading by choice for the time being. > > David K. > --- In [email protected], "sidhartha70" <[EMAIL PROTECTED]> > wrote: >> >> Thought I'd try and start a discussion on this very important > topic... >> >> Over the years I seem to have come full circle... back in 1994 >> starting as a largely discretionary trader, I moved into 'rule > based' >> systems while working for Merrill Lynch back in 1997. I spent about > 7 >> years trading various types of rule based system. All variations on >> statistical arbitrage themes. >> >> Over recent years I have migrated away from rule based trading back > to >> discretionary, and find myself developing some quite strong opinions >> about rule based trading (opinions which I happy to have > changed!!!). >> >> One thing that strikes me about this forum is the focus on 'rule >> based' trading and backtesting/optimization of systems. Perhaps this >> relates to the grounding of the product. I have been an owner of >> AmiBroker for about 5 months now I guess... and it seems to me it's >> strengths lie in backtesting & optimization (if only I had a product >> like this back in 1997 my life would have been an absolute joy). >> However, it's weaknesses seem to lie in it's charting (as has been >> commented on a couple of reviews on Elite Trader) and particualrly > the >> openness & adaptability of it's charting framework. >> >> Anyway, I'd love to start an open discussion on 'rule based' versus >> 'discretionary'... Pros, cons, differences, potential returns from >> each route, does one route lead to the other etc..etc... >> >> I'm very much wanting to learn from opening this subject up. >> > > > > ------------------------------------ > > Please note that this group is for discussion between users only. > > To get support from AmiBroker please send an e-mail directly to > SUPPORT {at} amibroker.com > > For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG: > http://www.amibroker.com/devlog/ > > For other support material please check also: > http://www.amibroker.com/support.html > Yahoo! Groups Links > > >
