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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. |
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It's true that my systems don't trade everyday despite using intraday charts. The conditions to trade only when the direction is already confirmed. I use the same money management in these systems as my discretionary trading, so any DDs would be the same. I aim to create systems that can emulate my style and risk tolerance else I'd never trade them. This is the reason why there are many systems out there that seem profitable but the DDs are so large, I don't have the guts to withstand the DDs. I have to pass them up.
This is the difficult part in system trading is that no system can trade more than 5 trades a day and stay profitable. Slippage and commissions will eat it alive. The feedback from traders in TS forums have confirmed this. Higher timeframes have better chances of lasting longer and be profitable. So less trades greater profitability.