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Mark who do you know other than yourself who actually trades mechanical.
The advantage of mechanical trading could be said that the computer can see
what the human eye can't and remains consistent. It also could be said
mechanical trading removes the human emotion. The main culprit in trading
failure. But heres the thing most mechanical traders I talk too believe.
Using discretion with their trading programs is mechanical trading. You
said "Discretionary trading on the other hand is continually evolving
towards becoming mechanical". You make an important point here which I
agree. Mechanical trading is automated, meaning correct me if I'm wrong
here taking every trade the mechanical trading problem says to, no
exception. Mechanical trading using the operators discretion is not
mechanical trading. Some have referred to this like that of an auto pilot
in an airplane. You can let auto pilot fly the plane or you can fly the
plane. Even though I like and have respect for the ones saying this I know
in my brain they are wrong. What they are doing is trading technically with
the aid of a computer used as a indicator and calling it mechanical
trading.Your one in a million Brown in that you understand trading and your
a master programer. I would say you and maybe a few others are mechanical
traders on this list are in the world. The fundamental , technical trader
who uses his senses, makes his trading decisions based on their experience.
The only measurement the discretionary trader needs is his bank account for
proof. To generalize and say all the bad traders in the E-mini. Means
everybody that doesn't use totally mechanical computer generated trades?
That is probably not the case many along with the people losing money or
pure technical, fundamentalist, discretionary computer program traders and
the pure gambler. So you can't take place in this discussion because your
generally alone. TS big promotion is you can make your own trading
decisions without to risking a dime. The clock is ticking you have less
than 5 seconds to pick up that phone and decide weather your a success or
a failure, tic, tic, tic. Now tell me today and others on this list which
mechanical trading program to go buy to make money. Can't, then tell
everybody on this list to write their own mechanical trading program, they
can't. Then tell me who is losing money in the markets the most? The
discretionary mechanically computer trader, the fundamentalist trader, the
technical trader, or the gambler? I don't mean to be argumentive. I have
respect for you as a person and I believe you or a great trader. But your
talking about yourself here and you are right where you are concerned.
Robert
At 07:17 PM 5/21/00 -0500, Mark Brown wrote:
>Hello robert,
>
>rcwan> Absolutely even though it is the source from hence all indicators
>originate.
>
>Discretionary trading is nothing more than a game of chance, much like
>gambling. Mechanical trading whose roots are founded from
>discretionary beginnings are continually evolving towards becoming a
>scientific solution. Discretionary trading on the other hand is
>continually evolving towards becoming mechanical. The benchmark of
>discretionary vs. mechanical are never to be compared, because one
>camp sees no value in keeping accurate statistics. Otherwise reality
>could be exposed clearly as a presentation of numbers which back the
>facts. What ever that outcome may be.
>
>Clearly discretionary trading has its place and serves its purpose.
>Granted also this type of trading is easily tractable and predictable.
>All one has to do is to observe the most frequently replicable
>reoccurring price movement of one of the most popular traded contracts
>namely the E-Mini. Just look at a chart and you will see where the
>majority of the small scared traders who have no understanding of the
>markets place their risk limits. These limits more than likely are
>primarily mental rather than physical stops placed in the markets.
>These mental stops and the urgency to execute them as the delay of
>market data comes to their computer terminals after the fact. Just add
>fuel to the fire of their psychological state and emphasizes the
>vulnerability which they are feeling as they exit the market any cost.
>
>As I watch the slaughter unveil itself , I fully understand exactly
>what discretionary trading is all about. The markets become a playing
>field of which just as any other bookie who is astute at his job can
>make odds.
>
>--
>Best regards,
> Mark Brown mailto:markbrown@xxxxxxxxxxxxx
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