Re: [amibroker] 'Rule Based' versus 'Discretionary' trading...

[malc fiveeightninenine <malc5899@xxxxxxxxx>]

I love the idea of a discussion about rules based vs discretionary trading.  Thank you for suggesting it.

For the past 5 years I have been running a rules based automatic trading system.  However before that I used to be a discretionary day trader on a trading floor. These trades were based upon whatever the news of the day was.

I personally believe that if you practice, and become good at it, discretionary trading should  be more profitable than any rules only computer system just as a expert chess player with the help of a computer program should be able to beat that same computer program alone.

The problem is that it takes a special skill that must be learned, and then tailored to the traders personality, and a source of good real time information to act upon.  Most people do not have the time, and patience required to build a good rules only system, let alone a discretionary one that also takes advantage of a rules system.

As for the fact this forum basically is about rules based systems only, that is the nature of a computer backtesting program such as Amibroker.

--- On Tue, 8/19/08, Tomasz Janeczko <groups@xxxxxxxxxxxxx> wrote:

From: Tomasz Janeczko <groups@xxxxxxxxxxxxx>
Subject: Re: [amibroker] 'Rule Based' versus 'Discretionary' trading...
To: amibroker@xxxxxxxxxxxxxxx
Date: Tuesday, August 19, 2008, 2:33 AM

Hello,

Not wanting to hijack this thread but whenever I ask
about some itemized list of what is exactly "weak" in AB charting,
I don't receive any meaningful reply. I would really want to know
some objective list instead of statements I heard on ET that
"charts are ugly" which for me unfortunatelly means nothing,
considering the hunderds of ways charts can be customized
according to user taste in AB.

Best regards,
Tomasz Janeczko
amibroker.com
----- Original Message -----
From: "sidhartha70" <sidhartha70@ yahoo.com>
To: <amibroker@xxxxxxxxx ps.com>
Sent: Monday, August 18, 2008 9:16 PM
Subject: [amibroker] 'Rule Based' versus 'Discretionary' trading...

> 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.amibroke r.com/devlog/
>
> For other support material please check also:
> http://www.amibroke r.com/support. html
> Yahoo! Groups Links
>
>
>

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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

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