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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@xxxxxxxxxxcom> wrote:
From: Tomasz Janeczko
<groups@xxxxxxxxxxcom>
Subject: Re: [amibroker] 'Rule Based' versus
'Discretionary' trading...
To: amibroker@xxxxxxxxxps.com
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
>
>
> |