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Re: Disadvantages to discretionary trading
<<So long as you tighten up your stops for the losers, but that will distort your results from the original system. When these failed reversals start kicking in more often, the small winners may not cover the larger losses.>>
the only 'system' is on the lower timeframe. my stop is based on the lower timeframe -- there are no larger losses possible because the initial stop is not discretionary -- its based on the optimization I have already performed. now if it moves my direction, I will always take 1/3 to 1/2 the position off at least. the other piece will be a discretionary exit but never a stop further away than the original stop -- and usually I tighten the stop to small risk or breakeven depending on the initial push after entry.
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