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tj wrote:
> of all the questions i get privately, it's not what "system" do you
> use, it's how do you trade with discretion. and this coming from
> mechanical "system" traders.
>
> ya gotta wonder
>
> TJ
>
> --- Gaius Marius wrote:
> And of the people who have made it, very few are systematic
> traders...most are discretionary.
Maybe we take the mechanical systems signals and try to execute them at
the best prices which needs discretion depending on your specific market
or exchange nuances or broker ability to execute in your best
interests,like for example how not to get robbed by the floor,despite
good signals from the system,the fills might make the difference between
winners and losers using the same system.
I use discretion to try to match the signals with actual trade execution
as this depends on actual circumstance/situation of the market at that
time,w/c if done properly,should have instant winners within intraday,or
by next morning opening we can already get confirmation that we did
right.
Sorry for the convoluted essay,am just saying the actual trade execution
might be discretionary even if based from a system's signal,specially if
you trade size,we know we can't get them all at the system's signal
price! Like we know the systems tells us to buy or be long ,but how do
we execute it optimally? At this time of day,day of the week,at the
current liquidity level?
So,frankly speaking,maybe people are not too"deeply" interested in
someone's else system,but the specifics how a successful trader executes
his trades,these guys might already have their own "systems" or
understood that everyone has develop his own that fits his trading
personality. As sometimes my wondering mind deviates into thinking "its
not the systems but the execution" that differentiate the real winners
from the rest ultimately, as i really believe one can have the simplest
or stupidest the weirdest "system" but hey, he's got great discipline
and longetivity and that might all make the difference.
Also,what i like to ask or know is,how long do we wait before
knowing/realizing that the signal is a failure (yes,these things come
time to time),how long do we wait for the market to confirm its a
failure. Am not asking the price (w/c is obvious)telling you are wrong
but the "time" or rope or room needed or use to give the trade,how
different traders do it,thats what i like to hear/read about.
So, Tj, these guys might already have their own system,and just
interested on how you "execute" yours to optimize the bottomline as in
managing the trade from initial entry to exits to damage control. So
these people are really asking to know how
others do it or to optimize actual trade execution and is based on their
own signals.
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