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as a person who has two jobs in forex ,i work as a prop trader as well as
quoting interbank i try to use both approaches.When its interbank as we
trade decent size tickets of 5 mio usd plus i am in for pips but even with
10 yrs+ i still hate losing points say 5000usd on aticket its pretty easy to
let it spiral up, so you try to quote from a position,this where i let my
chart system take over ill cut if things are going wrong and
reassess.However when i have my prop hat i feel very comfortable leting the
model run the show,it makes more money,is more relaxing and is diciplined
unfortantely if you sit in the hornets nest you get badly distracted by the
noise of the market . Sad to say one does best switching off all the
paraphanlia of the business but as my boss with 30 yrs in the business said
i dont pay you a traders salary for you to ingore our business franchise
which in my eyes is unrewarding but then again i get paid to have bricks
thrown at me all day long by market participants,So what i want to say is
dicretionary has its place and for my first 6 yrs was the way to trade but
the demise of steinhardt,tiger ,soros has fueled the growth of mechanical
trading and when i concentrate on prop or privately i follow mechnical ,As
oldtimers will testify the market use to offer macro trades about 6 -8 times
ayear in most big forex+intrest rate enviroments sad to say id be generous
at 3 occasions these are big pictire opportunities and not the shallow ones
after non farm payroll so thats why we see the constant climb to mechanical
trading.On a selfish note the price of this transperancy is the decline of
the proffesional market as banks lose their risk appetite and the price of
there trading staff as market discoverers are waylaid by the growth of
internet and otrer electronic sytems incidently this will shock alot of
you ------- you will be the losers as the market is ever more irrational and
very compressed volatile movemants. So if you are non mechanical please have
a gameplan and a stoploss scenario otherwise you are on the way to the
poorhouse
regards
mark oliver
www.paratechnics.pair.com
the forex system
-----Original Message-----
From: listmanager@xxxxxxxxxxxxxxx [mailto:listmanager@xxxxxxxxxxxxxxx]On
Behalf Of Proffittak@xxxxxxx
Sent: Wednesday, July 12, 2000 1:56 AM
To: realtraders@xxxxxxxxxxxxxxx
Subject: [RT] ReMechanical vs dicretionary: Trading System
In a message dated 7/11/00 3:42:31 PM Eastern Daylight Time,
rphodge@xxxxxxxxxxx writes:
<< Every study I've ever seen on mechanical Vs visual/discretionary debate
has
indicated that over time the mech guys trash their accounts more often and
finally burn out sooner that visual/discretionary traders.
Something about all of those strings of losers, and feelings of being out
of control, etc. etc.. >>
Hello
trading a mechanical system is like entering a trade on your own,
you must have a plan and stick to it,
if the system over time works well and you know you risk reward BEFORE
entering into the trade,, AND have just one filter to the mechanical system
that still make you do what it says but betting with your head and not
over your head. you will always be successful
having large DD or A streak of bad trades is part of ANY system
just because a system has them all of a sudden DOES not mean you abandon the
system!
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