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That's exactly correct Ray. And that's what I paid to be told
at his seminar in Chicago a few years ago. However, a pre-
requisite for attending the seminar should be that each attendee
has already developed a mechanical rule based system that has
an edge. After all, the end result of trading a mechanical rule
based system that does not have an edge is that you lose money.
And, when you lose money you are only adding to the problem
of creating psychological damage in the form of 'not trusting your-
self'. A loop develops where one remains in a 'stuck state' to
quote Dr. Tharp.
Charles.
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> From: ramon <rbarros@xxxxxxxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Discretion vs Mechanical
> Date: Tuesday, August 04, 1998 6:28 PM
>
> Hi Peter
>
> Mark Douglas' evolution of a trader fits in nicely here.
>
> "objective (mechanical) to subjective (discretionary) to
> intuitive".
>
> A mechanical trader: rule (written) based - once the rules are set
> up, you leave them in place for a set number of trades. In
> addition, there is no variance from the rules allowed.
>
> A subjective trader: also rule (written) based but can "break" his rules.
> In my experience, these rules are broken in favour of exits
> rather than entries.
>
> An intuitive trader: trades without rules and trusts that his
> intuition will make the best judgement possible in
> the circumstances.
>
> I agree with Gwenn that a novice trader's best start is
> as a rule based trader irrespective of his personality. Subjective
> trading requires at least modicum of knowing we can make money
> as traders otherwise "intuition" is merely "into wishing". I won't even
> talk about the probability of a newbie succeeding if he moves
> straight into the intuitive phase. Yet most of the ones I know of
> start this way.
>
> For the record I missed the rule based stage. With benefit of
> hindsight, I can say that for myself, I'd have been many $ better of
> had I had not.
>
> regards
>
> ray
>
> R Barros
> 101/25 Market Street
> Sydney NSW 2000
> Australia
>
> Voice: 61 2 92673470
> Fax: 61 2 92673478
> E-Mail: rbarros@xxxxxxxxxxxxxxxxxx
>
>
>
>
>
>
> ----------
> > From: Peter G <ktata@xxxxxxxxxxxxx>
> > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > Subject: GEN: Discretion vs Mechanical
> > Date: Wednesday, August 05, 1998 7:59 AM
> >
> > RTs:
> >
> > I have been exclusively discretionary in both stock and futures.
However,
> > Gwenn Ael Gautier was a strong believer in E.O.D. mechanical systems
for
> > the first years of trading. We talked some before she left the forum.
> > Anyway, any comments about DISCRETIONARY versus MECHANICAL trading?
> >
> > PG
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