I didnât explain myself properly. Almost everything I do is automated. I have specific rules for entry and exits dependent on different conditions. I only meant to convey that I assign weight to different inputs based on the market environment much like a system might be programmed for adaptation. My "discretion" is simply a synthesis of the available micro indicators I have at my disposal. I then filter all of that info through a macro indicator, so to speak. If I felt I was capable of programming the process I would. That is not to say it could not be done, I just donât feel Iâm up to the task and I believe it might well be cost prohibitive.
I actually trade a system that Iâve designed and I outperform it on some occasions and on others Iâm outperformed. Hopefully, we donât both blow up at the same time.
At any rate, Iâm a firm believer that the money management you mention is absolutely essential and that any trader would do well to concretize their strategy as much as possible. I personally keep stats on, categorize, and evaluate all my trades. In this way I can hopefully isolate that which is working from that which is not.
I wish the whole conflict between discretionary and mechanized trading would dig itself a hole in the ground and die. Aside from the false dichotomy, the argument completely misses the fact that each offers unique advantages.
What are those the discretionary trader asks? The potential to bypass emotion that might negatively impact P/L and the capability to cumulatively evaluate large chunks of information and complex connections.
And what are those the system trader asks? The ability to incorporate significant information that can be very difficult to accurately program at this time and the most important reason I can imagine.
The act of making judgments about my trading is engaging, challenging, stimulating, and enjoyable when I succeed. All the qualities I would like anything I do to possess.
Bye the way, does anyone ever read these long ass posts or are they just washed over?
