Very interest point made by
faure.
The title of his recent post is "Mechanical vs Discretionary (or trading the past vs trading the now)"
here is a part of it (the full post is on this
thread )
Quote:
I'm no big expert on systems trading but from what I've read in Joe DiNapoli's books is that mechanical systems will ALL bust eventually. It's up to you to use one while it's still working and stop using it as soon as it fails.
This is where you have to ask yourself whether or not this is how you would like to go about trading. If not then you have another option - discretionary trading.
Here's the kicker, subjective trading is a lot harder, more stressful (initially), and a longer process than what any system designing will ever be. BUT the rewards are much greater.
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