More than half of the CTA's reporting profits over multi year spans are fully automated. The common themes they seem to use: using multiple strategies, adapting by adding new strategies, diversifying trading frequencies, & trading a broad scope of instruments both domestic and foreign - long & short. I have been a discretionary trader working my way into some automation.
If it is then, what are you doing here instead of sitting at beach? j/k. You may be lucky to have that system. I was saying it takes lots of effort/testing to identify one and run it for longer time.
What you are referring may be for an CTA where they have multiple systems, instruments, long/short (hedging) and their total overall return may be +ve or good. What I was referring to a single instrument trading system where you measure the only one system/one instrument alone. Ofcourse a good system should be tradable for all instruments but not all instruments move or behave in similar way.
That's more then likely what would happen, wait for a signal and take it from there. I just found the idea interesting and thought i'd see what others with more experience in the markets had to say about it. I'm getting the general consensus, thanks for the reply.
Does anyone keep statistics like that? ________________________________________________________________________ Barclays - Systematic versus discretionary. Upon a second look it looks like discretionary has a more consistency in making money, whereas systematic has bigger spikes & draw downs and more losing years than discretionary. But they do seem to hit the same long term ROR. Its kind of subjective depending on what sampling span you look at.