Discretionary vs fully Systematic

Discussion in 'Psychology' started by alphadillo, May 26, 2023.

Are you discretionary or fully systematic?

  1. Discretionary only

    6 vote(s)
    24.0%
  2. Systematic only

    8 vote(s)
    32.0%
  3. Mix of both

    11 vote(s)
    44.0%
  1. %%
    GOOD points+ good time;
    for daytrades.
    NEVER limit that to 2 hours when doing longer trades, trend trades or investments.
    Life's so hard to understand \
    why the rich man's busy skippin' \
    while the poor man pays the band. T Tritt Song / Lord Have Mercy on the Workin' Man.
    [I still like to do chart work by hand\
    ..........................................+ some farmland\
    + nothing like a good plan/ or greenland/ RymeZone
     
    #31     Aug 8, 2023
  2. Redneck

    Redneck


    Various thoughts

    Back testing is fine but be cautious of over optimizing - mkts constantly evolve / morph / change - as does the world


    Discretionary vs systematic

    Systematic - for it to truly be - it should be able to be programmed (a=c..., then do b) - which works until the mkt morphs.., then will need to re-baselined / modified


    Any approach that can't be programmed - by default is discretionary

    Optimal discretionary, learn to read price (which is simply a matter of learning a new language) - then simply follow the bouncing ball (while always using a stop loss) - this way is self correcting / adapting - as then mkts morph

    Takes work - but then all things worthwhile do

    RN
     
    #32     Aug 19, 2023
    ironchef and murray t turtle like this.
  3. %%
    Good + practical.
    COULD be to easy to do stupid risk[aka stupid like gambling]with out rules.
    Even if one could find a system one liked;
    takes discretion to do that.
    Orange Cover WO'N 444 page book[Make Money ...;Win System is an example of rules+discretion system, even though it's Index patterns+ single stocks.
    So with discretion+ rules could use ETFs.
    Some use rules with with choice like sell or buy@ 50dma;
    + planned [written]on getting out of SPY today, on hourly charts- had 6 good hourly choices today, its usually not that many good choices LOL.
    Got in something I like better.
    I did trade some single stocks,2023 but i wanted to beat SPY benchmark by 100%, meaning if JAN SPY did 4% i wanted 8% net.So that's why i dont trade single stocks, may do SSO, it will.
     
    #33     Aug 29, 2023
  4. ironchef

    ironchef

    @VSTscalper, thank you for sharing the ebook.

    I have friends like you, from aerospace, many applied their skills in engineering to trading but few were successful.
     
    #34     Aug 29, 2023
  5. VSTscalper

    VSTscalper

    ironchef,

    Thanks for taking the time to look at the eBook. I hope it helps some traders.

    If you or other traders want to come into a Skype or Zoom Room sometime - watch my Algos give the Signals - you are more than welcome. My charts are clean - NO indicators - just the Signals. By the way - although I have my Algos - I personally would NOT let it trade Full Auto - without watching - as there are so many things that can go wrong. I actually Prefer - Discretionary trading the Signals - and I trade a Maximum of 2 hours in the morning - when I trade. Any trader who wants to watch the Signals - if they trade them - do it on Sim - as I do NOT want to be responsible for any Real Money Losses.

    There will be absolutely NO sales pitch. The only problem would be having to listen to me - as I tend to Bullshit a lot - probably because I grew up in Montana - worked with a lot of cattle - LOL. It is kind of funny to me - worked on farms and ranches when I grew up - and a lot of kids my age - ended up owning their own farm or ranch. I decided I wanted to get far away from that - no more Bullshit for me - so I became an Engineer in the Aerospace Industry.

    By the way - I much prefer Scalping. I grew up on an Indian Reservation - both my Brothers-in-Law - were American Indian - and they showed me the correct way to SCALP - so - you might say - it is in my blood - LOL.

    VSTscalper
     
    #35     Aug 29, 2023
  6. Redneck

    Redneck


    Here some examples

    Trading discretionary..., with rules



    every trade gets a stop loss simultaneous to entry - no exceptions

    stop loss never gets increased - take the damn loss

    stop loss gets moved to profit - once / as feasible (seldom do I move to B/E)

    never add to a losing position - take the loss / find the next entry

    add to positions that are green

    in a confirmed uptrend - look for long entries only (pullbacks / breakouts / ect)


    same for downtrend

    In a range - don't look for new B/Os - trade accordingly (buy the bottom / short the top) - while knowing where traders are placing their stops - duh..., so don't be that guy

    enter when it mentally the toughest (holdover from my earlier days - these entries no longer are)

    if head up ass / distracted - don't trade - no exceptions

    last 15ish minutes before close - no trade (not enough time to recover / dig out if it doesn't work)

    each morning - go thru prep before trading - no prep.., no trading..., no exceptions


    Trust these examples helps elucidate

    RN
     
    #36     Aug 30, 2023
    Dollardogs, deaddog and Onra like this.
  7. shine

    shine

    I trade only systematically according to the rules and conditions of my trading strategy. Therefore, my actions and trades are justified and reasoned, I know when to enter the market, and when to wait for conditions for this. Also, the analytical blog of my broker fxopen helps me make more balanced decisions, where analytical reviews on technical and fundamental analysis are published every day. Therefore, trading brings profit in the end.
     
    #37     Nov 14, 2024