hmm.no edges in the markets
- Thread starter chimera
- Start date
I strongly agree with this statement.
It's very simple, if its not automated or mechanical, it's discretionary regardless if the method is rule base or not. For example, if someone say I don't enter trades 10 mins before schedule economic events to 10 mins after schedule economic events...that's a discretionary rule (not automated/mechanical trading) trading tactic involving the entry side of the trade method.
I myself am primarily a rule base discretionary trader while about 15% of my trades are intuition discretionary while the latter relies heavily on trading experience.
No excuses about coding difficulty.
Just about anything can be coded. Rules-based discretionary mix, sure? Filter on the full moon or the high tide? Sure. Counting bars, HL & LL combo. A bearish bat harmonic pattern forming? 24 bars passed and trade not in the green, cut it? It's a fed day so adjust rules? Sure.
It wasn't until I automated my first discretionary system that found the holes that would have eaten the edge over time . Knowing when your edge is diminishing..gold.
If you can describe it, rules-based, it can be built.
(There are threads out there showing coding PA did not result in all these stellar claims of success)
Still waiting for the Al Brooks magic indicator.
Just about anything can be coded. Rules-based discretionary mix, sure? Filter on the full moon or the high tide? Sure. Counting bars, HL & LL combo. A bearish bat harmonic pattern forming? 24 bars passed and trade not in the green, cut it? It's a fed day so adjust rules? Sure.
It wasn't until I automated my first discretionary system that found the holes that would have eaten the edge over time . Knowing when your edge is diminishing..gold.
If you can describe it, rules-based, it can be built.
(There are threads out there showing coding PA did not result in all these stellar claims of success)
Still waiting for the Al Brooks magic indicator.
Quote from Redneck:
Which is why a level headed trader can beat a bot
They may be quicker at executing.., we're more flexible and adaptable, not to mention we can anticipate
Go figure
RN
Agreed.
I could still defeat computers at expert chess up to mid-1990's because I could sense the algorythm and consistency behind the decisions made. I would steer the game to a type that the rules didn't apply if I could. I did that with human opponents as well. That is where trading is headed now I suspect now. We know the exceptions, robots (so far) don't. Those that win now, use computers for the routine work and do the creative parts.
I think most of the traders now that still succeed have some part of discretionary in their systems. System edges are easily picked off by computers, since they can be programmed and thus detected and destroyed by computers. Just my 2 cents worth.
