Trading for a Living

marcus · #21 24th May 2007, 03:51 AM

By the way discretionary trading although although more formidable is a much more superior and a better method than system trading, Tushar Chande himself sates this in his book "beyond technical analysis" so does the author of the book "Mechanical trading systems"

Discretionary trading is meant for the superior trader where as system trading is the best method for the average joe.

uasish · #22 24th May 2007, 08:22 AM

marcus,
In simple terms what is discretionary trading ?
How it is better than Mechanical ,as stated by the auhors.
Kindly enlighten us.
Asish

kkseal · #23 24th May 2007, 04:40 PM

Quote:

Originally Posted by Saint

Risk management is not the be all and end all of trading success.Trade selection matters.Entry strategies matter.Having a trading plan matters.

..........and probably many other things that do not readily come to mind(sorry,lack of sleep,yawn!!)......but along with them all,the discipline to execute them all.

Ok, Saint That clarifies what you meant by discipline. No disagreement there. Sorry i misunderstood you.

Regards,
Kalyan.

uasish · #24 24th May 2007, 05:58 PM

Quote:

Originally Posted by ratan jain

how many years till system trading is allowed.... I wonder...

although I suspect big institutions are already into it via some platform.....

I would love to take the decision making process out of my trading.

There is a chance of overemphasizing,let every tom dick & harry (like me)have their own system & they are all robots ,who says my system is going to be more profitable ? or least at par with mkt's performance or slightly below mkt's performance.
The Entry / Exit is designed to trigger on my own codes (which is the neat result of my understanding).
Every batsman (system traders) know & have learnt how to 'Cover Drive'
(bringing his leg & rock steady head,on the line of the ball ,equiped with risk mgmt.,the upliftment of the bat & its grip,money mgmt position sizing) but howmany gets a boundary ? (here the contact of the ball to bat ,sheer timing
of the Entry at right price) lands in boundary.
So like all qualified batsman it all depends on that individual's own SYSTEM.

Spiderman · #25 24th May 2007, 06:03 PM

To answer a question Alex elder writes...A beginer has no right to be a discritionary trader. First you have to show a few profitable years following your rules strictly, then you can think of becoming a discrtionary trader...

Imho, discretionary trader is an evolved species .

regards,
spiderman

Saint · #26 25th May 2007, 12:22 AM

Quote:

Originally Posted by kkseal

Ok, Saint That clarifies what you meant by discipline. No disagreement there. Sorry i misunderstood you.

Regards,
Kalyan.

No probs,my friend...

Saint

beginner_av · #27 25th May 2007, 11:49 AM

Quote:

Originally Posted by ratan jain

how many years till system trading is allowed.... I wonder...

although I suspect big institutions are already into it via some platform.....

I would love to take the decision making process out of my trading.

You are right. I got to know about it from CV. Though ordies like us are supposed to take written permission from NSE, if they agree to give.

beginner_av · #28 25th May 2007, 11:54 AM

Quote:

Originally Posted by Spiderman

To answer a question Alex elder writes...A beginer has no right to be a discritionary trader. First you have to show a few profitable years following your rules strictly, then you can think of becoming a discrtionary trader...

Imho, discretionary trader is an evolved species .

regards,
spiderman

I was once profoundly influenced by elder. Now I have realized his bs. His problem is that he thinks he thinks he is the know all who can write one-size-fits-all for all traders irrespective of their types, characteristics, strategies etc.

beginner_av · #29 25th May 2007, 11:58 AM

Quote:

Originally Posted by kkseal

It would be good if mechanical systems ruled. That would probably make the markets more predictable.
Regards,
Kalyan.

Of course not. It just takes the subjectivity away. your system's entry , exit and risk management will never be mine, as our rules will be different. If I use DRRM, you may just use Kelly. Only when we all use the same system will the self-canceling effect of technology take place and render them ineffective (no competitive advantage).

beginner_av · #30 25th May 2007, 12:02 PM

Quote:

Originally Posted by uasish

There is a chance of overemphasizing,let every tom dick & harry (like me)have their own system & they are all robots ,who says my system is going to be more profitable ? or least at par with mkt's performance or slightly below mkt's performance.
The Entry / Exit is designed to trigger on my own codes (which is the neat result of my understanding).
Every batsman (system traders) know & have learnt how to 'Cover Drive'
(bringing his leg & rock steady head,on the line of the ball ,equiped with risk mgmt.,the upliftment of the bat & its grip,money mgmt position sizing) but howmany gets a boundary ? (here the contact of the ball to bat ,sheer timing
of the Entry at right price) lands in boundary.
So like all qualified batsman it all depends on that individual's own SYSTEM.

Well said. have u played cricket 2005/7? when u put in the experts (difficult) mode, the PC's cover drive will be perfect. Why? Coz the algorithm is built in and calculations are done in a jiffy.

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