|
PureBytes Links
Trading Reference Links
|
Hello robert,
rcwan> Mark who do you know other than yourself who actually trades mechanical.
rcwan> The advantage of mechanical trading could be said that the computer can see
rcwan> what the human eye can't and remains consistent. It also could be said
rcwan> mechanical trading removes the human emotion. The main culprit in trading
rcwan> failure.
If I were the ostrich I would stick my head and say and right here and
read no further.
rcwan> But heres the thing most mechanical traders I talk too believe.
rcwan> Using discretion with their trading programs is mechanical trading. You
rcwan> said "Discretionary trading on the other hand is continually evolving
rcwan> towards becoming mechanical". You make an important point here which I
rcwan> agree. Mechanical trading is automated, meaning correct me if I'm wrong
rcwan> here taking every trade the mechanical trading problem says to, no
rcwan> exception. Mechanical trading using the operators discretion is not
rcwan> mechanical trading.
Believe me when I say he there is a growing number of mechanical
traders they do have a complete faith take every trade approach to
systems. I personally know of several who have and/or in the process
of implementing completely mechanical order entry systems into their
trading. This will allow a trader who has a mechanical system which
he has faith in to further over come that last bit of emotional baggage.
There are others better in various stages of getting to this process.
But this level of supposed sophistication is much less rare today
than it was even just a year ago. Soon we will see a commercial
product become available to electronically inter orders given from
mechanical trading systems automatically. I will predict this product
will most likely have originated from a country other than the U.S.
which has less litigation and liability issues.
rcwan> The only measurement the discretionary trader needs is his bank account for
rcwan> proof. To generalize and say all the bad traders in the E-mini. Means
rcwan> everybody that doesn't use totally mechanical computer generated trades?
I certainly did not mean to imply that every body traits the E-Mini is
an inexperienced trader. I certainly believe their discretionary
traders who are making money trading all markets. I believe that
those who are successful are trading outside the noise levels
generated by those who are less experienced. When you look at an E-Mini
chart typically the small chop that you see is nothing more than the
absurdly small risk stops that inexperience traders are using.
I will also state that I completely believe discretionary traders who
are experienced can make money as well as a mechanical trader whose
experienced can also make money. This coming from the perspective of
a mechanical trader. However it never ceases to amaze me that the
discretionary trader can not have as open a mind.
SNIP>
rcwan> Then tell me who is losing money in the markets the most?
Obviously those who take this business lightly, and viewed as some
hobby to be conquered rather than the most sophisticated undertaking
mankind has tackled other than those which are a biological in nature.
rcwan> respect for you as a person and I believe you or a great trader. But your
rcwan> talking about yourself here and you are right where you are concerned.
I view myself as someone who can be honest with themselves and
know I would never make a great discretionary trader. I have worked
for several successful discretionary traders. They all never
expressed a doubt that fully mechanical trading cannot be as
successful if not more successful than discretionary. They were all
working towards the goals of fully mechanical trading. However when
confronted with the reality that this might be a possibility, the
need to be in control overtook all logic.
rcwan> Robert
--
Best regards,
Mark Brown mailto:markbrown@xxxxxxxxxxxxx
|