Day Trading Systems

Candeltrader,



I have always been crazy about planes and I wanted to become
a pilot but didn't had the cash at that moment.

Sabena went bust a few weeks ago, I'm still mourning ...
 
Originally posted by FIREHAWK
Beginning traders use their intuition, its all they have, but invariably they fail miserably. Why?

Obviously we are not born with a trading intuition. It is not congenital or innate. Trading intuition is not necessary for the survival of our species.

From where does it arise? At what point do we acquire this wonderful 'reliable' intuition of yours? How can we be sure of it?
More...

Not to mention that your human condition can affect your trading decision. What if you had a traumatic experience that adversely affected your discretionary trading? What if you are ill and cannot trade for quite some time?

With a trading system I could build a TradeStation module and give to managed broker and tell him explicitly, never risk more than X% on any trade, never take more than Y positions per day, liquidate my account if it reaches Z%. If I ever get bored with the markets maybe I'll do just that.

The point here is to elaborate on the benefits of systems trading. If the brain can do it, it is definitely possible for a 100% mechanical system to be created. The degree to which one can capture that discretionary approach into a trading system will determine the success of the model. The success of the system depends on the strength of the approach.

Here's an example- how many people originally thought that a computer could never land a plane on autopilot? Well it's possible. Can it be done as well as a human? No, but that's because the computer program isn't as complex as the human brain. Still, is that encapsulation of "how to land the plane" not a success? Just like one could encapsulate a Tony Oz setup. Eric Oz, Tony's brother, has been coding Tony's setup to make it a 100% mechanical system. Currently his results aren't as good as Tony's discretionary approach, but it is profitable. The better Tony can describe to Eric every step of his discretionary approach the better Eric can program the system.

Surely this would be considered a mechanical system that works, albeit not as successful (yet) as Tony Oz's discretionary approach? But I bet it is a lot more successful than most other traders following Tony's techniques who are not as good a discretionary trader.
 
Firehawk,

The point I was attempting to make is that we (the collective human race) are impotent and weak. God is more powerful than any human brain (for the believers amongst us).

Halleluja,
Candle
 
"It's the same feeling like when you meet a girl for the first
time and your "intuition" tells that she is the one.

That same feeling I have when I see the right set-up appear..."
~sabena


sabena,

Do you know what the rate of divorce is? Do you really wish your trading was this "reliable"?

LOL


You have given us no definition because you have no definition to give. Excuse my candor, but you don't even know what it is you seek.


FIREHAWK
 
Sabena,

I am in a deep state of melancholia at the thought of your aspirations for taking to the skies, in nothing less than the cockpit, having being dashed. Maybe you can find solace in trading.

Candle
 
Halleluja, yes praise the Lord !!!



I have had a serious accident , 1 week in coma.

Since then my trading has exploded, how do you explain that ?

There is something out there ...
 
Originally posted by candletrader

I am always 'wasting' my time here Dottom... and I am one of those people you are referring to ... I trade a "discretionary system" i.e. I take the signals when I feel in the mood... call it instinct, gut or whatever... I suppose those gut feelings too are part of my system... I just haven't been able to model them.
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You're definitely an exception, Candle. :) You help out others by posting your experiences. I like sharing and learning myself which is why I post here and at Weatlh-Lab. But there are traders who do quite well and would just rather keep their ideas & techniques to themselves.

My reply in regards to Hitman is that if the only way he is going to believe that a systems trading approach is successful is to have someone making > $250k per year walk in here and say "here's my brokerage statements, here's my trading system, here's how I trade it" that's just not going to happen.
 
candle,

I was afraid you were going to say that. Sadly, I must admit we are worlds apart on this one. You see, the supernatural plays very little role in my life. I like to keep my feet planted firmly on the ground and my mind firmly rooted in the rational.


FIREHAWK
 
I cannot give a definition of intuition because
it cannot be expressed in words.


How do you translate Mozarts music into words ?
 
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