Re: Mechanical system demon

["Bryan Finnegan" <TeamData@xxxxxxxxxxxxxxxx>]

Jay,

Thanks for the reply! I appreciate your input.  

I feel for me it might be best to change to end of day basis.  Trading
intra day leaves me hours and hours of slow time, and I naturally want to
be productive and do something during this time.  I heard Linda Raschke say
once that the key to trading is to learn to ignore the "market sirens" who
call out to bored traders to put on a trade/ignore your system.  

I'm not sure how others fight-off this temptation, but I find it very
difficult.  Because for me, the more bored I am, the weaker my defenses
become.  So I either have to figure out how to stop being bored, or I have
to switch to a longer time frame.  I'm leaning toward the latter.

Good trading!

Bryan

----------
> From: Jay Mackro <jmackro@xxxxxxxxxxxx>
> To: TeamData@xxxxxxxxxxxxxxxx
> Subject: Re: Mechanical system demon
> Date: Monday, May 03, 1999 5:14 PM
> 
> At 08:06 AM 5/3/99 -0400, you wrote:
> 
> >1.  How have others dealt with this?
> >I know there are brokers who will follow a system for me, but I don't
trust
> >giving them my ela code.
> >
> >2.  Is it easier to switch time frames from intra-day to end of day?
> >Maybe switching to EOD will limit the time span I focus on the market,
> >which perhaps could minimize the temptation to meddle with the system.  
> >
> >3.  How have others dealt with this demon?
> 
> Bryan:
> 
> This IS a demon, and the fact that you are able to recognize and
> define it suggests that you have the problem at least partly solved.
> There are systems traders and there are discretionary traders -
> you need to define which you want to be, and become that.  I
> myself am definitely a mechanical trader - I would rather take
> losing trades signalled by a system I have faith in, than try
> to outguess the market.  I believe that others can successfully
> outguess the market, just as others can run 4 minute miles.  But,
> I don't aspire to duplicate their feats.
> 
> EOD systems are a bit easier to follow, since you can just monitor
> them after the close, and not be tempted to tinker with the
> recommendations intraday.  Of course, you can still not take signals 
> that you feel are wrong, exit early, etc.
> 
> At some point, you just need to grit your teeth, resolve to be
> a mechanical trader, and trust your systems.
> 
> I agree with your conclusion about broker assist, though for
> different reasons.  I worry less about them stealing my systems,
> and more about them doing a poor job of monitoring them.
> 
> Regards
> 
> Jay Mackro