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At 07:52 PM 3/20/98 +0000, adcall wrote:
>Hi Tom,
>
>Ric Ingram wrote:
>>the purpose of this post is to suggest that
>>the system is not the source of profits, the trader is.
>
>I suspect that Ric was referring to a system trader who blindly follows
>the signals given by a 'computer programmed trading system' rather than a
>discretionary trader who may follow a set of rules that together form a
>'system'.
>
>Michael Soliatis
>
Tom, Michael and all:
Maybe we should look at the trader as the source of
the profits. I do not mean by this that the
"discretionary" approach has now received a blessing.
I mean that someone who has a system that is rated
poor by everyone else, or which has even been rated
based on objective scoring of all users as being a
loser, can in someone's hands be profitable. What's
the difference? The trader.
BUT, the difference might be that the simple system
was followed in a better way by the one lone person
who had the discipline to avoid sabotaging it by his/her
gut feel. This, then, sounds like someone who "blindly
follows the signals given by [the system]." In the case
of a person who trades in such a disciplined way and
keeps incurring losses in a favorable market, one is
tempted to say the system stinks, rather than saying
the trader is a loser.
Systems need to be tested, back-tested and qualified
before their use is to be relied on. There is nothing really
fundamentally different between " a 'computer programmed
trading system'" in the hands of a disciplined trader, then,
and a rather than "a discretionary trader who may follow a
set of rules that together form a 'system'" (not computerized).
Well, yes, the way I phrased it (contstrained by quoting) the
original text, I am comparing a human with rules and a
program run by a human. Quibble, quibble.
It's just that we have to get past both the faults of programmed
systems and the (I think bigger problem of) the interference
BY THE USER of a program or a set of good rules.
Pete
petena9090@xxxxxxxxxxxxxx
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