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What's sorts of things inspire you to initiate a trade after you've gotten
a signal from your system?
-----Original Message-----
From: Gwenn Ael Gautier [SMTP:Gw.Gautier@xxxxxxxxxx]
Sent: Sunday, March 15, 1998 10:22 AM
To: Earl Adamy
Cc: omega-list@xxxxxxxxxx; Tom Cathey
Subject: System & Discretionary Trading
Here's my way of doing things:
* I am too stupid to figure out when what to buy, sell, so I leave that to
a system.
* I am too stupid to figure out which signals are good, which are not, so I
take them all.
* I am too stupid to figure out how much to buy, so I leave that to a money
management algorythm I have done with Excell.
* I am good at execution so I decide when to execute. This is
discretionnary. Upon a buy signal, I view the market from a long point of
view, and I feel absolutely compelled to buy. Usually I am not too inspired
so
*
* I just buy roughly at the systems entry price. But sometimes I let a
small adverse trend run, and buy cheaper. Occasionally I miss the entry, so
I chase a bit and enter with big slippage. But all in all, I have about
zero costs, as I make also my commissions back.
* I am too stupid to figure out how far this trade may just go, so I simply
wait for the exit, and do other things in the meantime: read, listen to
music, mow the lawn, wash the car, play video games, else.
* But sometimes the market gets a bit ahead of itself, or there are nice
Elliott setups, and I become discretionnary again. I exit the position at
limit, I wait for the market to calm down again, and as soon as I don't
know anymore what's going on, I go back in. Remember, I was compelled to be
long.
That adds a good 20% to my system return. No worries, no stress, no
thinking.
But above all, know why you are doing these things. Play on your strengths,
and keep your weaknesses under control.
Gwenn
Earl Adamy a écrit:
> What a perfect description! Once this happens the only issue is whether
fear or
> confidence wins as the trade percolates from the subconcious to the
concious.
>
> Earl
>
> -----Original Message-----
> From: Tom Cathey <K1JJ@xxxxxxx>
> To: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
> Date: Sunday, March 15, 1998 12:22 AM
> Subject: Discretionary Trading
>
> >that when a setup occurs something will go off in my head. What actually
> >happens with me personally is that suddenly I start to feel very anxious
> >and my heart starts to pound. It's almost as if my subconscious has
> >recognized the setup and I then consciously realize that I am about to
put
> >my ass on the line for a few contracts. I do not use stops- I'm always
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