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Old 06-22-2007, 04:31 PM
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Re: Disadvantages to discretionary trading

Unless your mechanical strategy's rules are based on the same assessment as your discretionary strategy, then you're comparing apples and pears. They have two different structures viewed by two types of technical analysis. I've tried this myself trying to read the market my own way as the auto trade is in progress. Most of the time, I take over, I end up disappointed with the results, either cutting short my profits or exit before it has a chance to move into profits.

The problem with discretionary strategy is that we cannot see the way we program the systems anymore. You mentioned bear flag, you're used to looking for it and not looking at the stochs (example of your mech system) meticulously for an entry anymore, your judgment is no longer trained to view that way. I've had this problem and I have the charts where the strats are turned on and set them aside and not have it interfered with my discretionary decisions.

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