Yes, a mechanical system can eliminate some stress but not entirely. I'm speaking from experience. Although I have to add that I'm in first place a discretionary trader. But I managed to eliminate some stress by transferring some discretionary tasks toward a mechanical system to help me to manage some important steps of my strategy which have some very strict rules.
For instances when it comes to executions of trades(close,open,wharever). For me, using a mechanic system eliminates that "maybe it will make a little correction in my favor" or other scenarios like this. The mechanic part of my system will cut the positions as the predefined rules.
Now getting back to fully mechanical trading, you could eliminate some stress, by applying some very specific rules but again, the stress will come from... when you will get into a draw down period and you will start to lose your confidence in your trading strategy so... here we get back to the stress part.
Also, there is no such thing as a fully mechanical trading which is wrote into a black box(or you name it) which will be a set and forget money making machine. Even the biggest HF allocates a lot of resources towards continuously adapt/modify their strategy(maybe adjust some volatility modules of their trading strategy, or add some other mechanical strategies which have a negative correlation with the portfolio so this new additions will reduce volatility/risk and will improve the overall returns).
Hope it helps.
For instances when it comes to executions of trades(close,open,wharever). For me, using a mechanic system eliminates that "maybe it will make a little correction in my favor" or other scenarios like this. The mechanic part of my system will cut the positions as the predefined rules.
Now getting back to fully mechanical trading, you could eliminate some stress, by applying some very specific rules but again, the stress will come from... when you will get into a draw down period and you will start to lose your confidence in your trading strategy so... here we get back to the stress part.
Also, there is no such thing as a fully mechanical trading which is wrote into a black box(or you name it) which will be a set and forget money making machine. Even the biggest HF allocates a lot of resources towards continuously adapt/modify their strategy(maybe adjust some volatility modules of their trading strategy, or add some other mechanical strategies which have a negative correlation with the portfolio so this new additions will reduce volatility/risk and will improve the overall returns).
Hope it helps.
