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From: Sean O'Toole <sean@xxxxxxxxxxxxxxxxxxxx>
: > DH wrote:
: > If you trade a mechanical system, psychology is irrelevant. Just take
: > the trades the system gives you and ignore your "feelings."
:
: That's what Richard Dennis said *before* he blew up the last time.
:
: If you know systems, you understand aberration. If you know aberration,
you
: understand that everything eventually reverts to the mean.
If you believe that everything reverts to the mean, then you're using the
wrong math to trade. If you believe that the markets conform to a
binomial/Gaussian distribution, you need a reality check. And if you are
using 'Aberration' to trade, then you desrve everything it gives you. :-)
: All systems cease to work.
Prove it.
: The system trader's primary job is finding the
: next system. The system trader's greatest fear is that his system is in
the
: process of disintegration.
Again, prove it. If you're gonna keep on making these generalizations, I'm
gonna keep on asking for proof. :-)
: That fear is the fear of the unknown.
:
: Dennis, if your system hasn't yet failed, it will.
If a system fails, then there's something fundamentally wrong with it in the
first place (either in its basic design or theory under which it was
designed.) which should have been capture in the testing phase.
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