Dumb Questions From a Noob

Discussion in 'Trading' started by KGTrader4, May 21, 2022.

  1. Robert Morse

    Robert Morse Sponsor

    I agree, but a trader or data expert told the Algo what to do. To me, it is very similar.

     
    #21     May 21, 2022
  2. They are more different than their names sound.

    RS, "Relative Strength"... is the measure of one issue vs. another. Example... if the Nas goes up 3% while the SP goes up 2%, the Nas has shown greater "relative strength" vs the SP.

    RSI, "Relative Strength Index"... is a technical tool that shows where an issue is currently vs. a certain number of recent days... 14 days/bars is the stock default. Think of it as a form of "overbought/oversold oscillator". Similar to other "range indicators".
     
    #22     May 21, 2022
  3. themickey

    themickey

    My interpretation of discretionary.
    Firstly, I'm a rule based, algo, fundamental, technical, discretionary trader, I use all five simultaneously.
    The discretionary part; although my rules and algos may direct me, ultimately I decide from experience and market conditions, whether to trade and what to trade.

    Computers and rules are fine because they funnel you quickly to a decision, but they are not enough to capture all the information floating about.

    For some, they will trade straight off a computer based signal, for me, accuracy is more important than quantity, so my brain brings in checks and balances.
     
    #23     May 21, 2022
    easymon1 and KGTrader4 like this.
  4. TheDawn

    TheDawn

    To me a "discretionary trading" is making a trading decision manually vs. programming a trading plan/system/decisions in various scenarios into a software program and running the program to trade automatically. You trade at your discretion and not by a set software.
     
    #24     May 21, 2022
    KGTrader4 likes this.
  5. schizo

    schizo

    Discretionary trader
    [​IMG]

    System trader
    [​IMG]
     
    #25     May 22, 2022