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I agree. This is why many successful system traders advise to keep their system open and flexible, the less variables the better. This is also why higher timeframes work so well vs. intraday trading. I have 3 working systems and they do a nice job of capturing the essence of the market direction with only 1 indicator and price is the other indicator over time.
I discretionary trade because my mission is to understand the markets as much as possible before getting more into system trading. I want to know how the market works for myself before building more. Took me 2 yrs to come up with 3 systems so I figure my learning curve in building them would increase as my discretionary gets better. |
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Hi torero,
I'm curious on average how many trades you get daily in your intraday trading system. From my understanding, it is difficulty to get more than 3 trades a day for an automated system. This is also one of the aspect I prefer discretionary trading over automated trading. A discretionary trader has the flexibility to trade by adjusting to different market conditions. He/she can be both a scalper and a swing trader. I'm not sure whether automated system have such a flexibility.
Another aspect I prefer discretionary trading over automated trading is lower drawdown. I read something about the drawdown of automated system. It usually ranges from 20% to 50% annually. It's just too high, IMO. A good discretionary trader can have much lower drawdown as long as he has a sound trading method and good money management.