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At 10:14 PM -0400 7/25/99, The Omega Man wrote:
>"System trading" is *impossible* because:
>
><snip>
>
>System trading is a myth!
>
>The whole game is position sizing/money management! The entries and exits
>are going to be completely discretionary no matter what "system" you *think*
>you are trading. In reality, no "system" can really be traded due to the
>factors listed above!
Interesting debating technique. You define a "system trading" as something so idealized that it can never be achieved and then conclude that it, therefore, cannot exist.
Read the Jake Bernstein definition you referenced carefully:
"A trading system consists of specific signals, operationally defined,
combined with a set of decision making procedures and risk management
rules, all designed to make trading objective and mechanical."
The way I read this it says "designed to make..." And cars are designed to be safe but are they absolutely safe? Of course not. A great objective but unachievable. So should we stop trying to make them safer? Should we give up driving and walk everywhere?
Ask Mr. Bernstein if he absolutely always takes every signal his trading systems generate.
It always seems that the people who say a profitable trading system cannot be built never seem to be able to build one while those who do not know it is impossible often seem to do OK.
In a more pragmatic vein, I know a lot of traders who make a lot of money using what they call their "mechanical trading system" and they do not take every trade, use real data as it comes off of the feed complete with bad ticks, sometimes take a day off, usually eat lunch, sometimes take their dog to the vet, sometimes go to the head....
Bob Fulks
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