Difference between discretionary and mechanical is simply the number of inputs. Can robot be coded to ride a bike just like human? Does it mean riding a bike skill cannot be transferred from human to human?
First off â a couple of you are assuming KA meant PA trading He stated PA is discretionary â it is not, price never lies Second â NOD has rules/ plan â that she follows to the letter So either way you slice it KAâs remark about PA is fallacy Not you CF RN
From what she described, I agree it sounds way too difficult to code. Doesn't take away from the fact that she is able to make good and consistent money from her method. But, yes, it would be incredibly tough for her to automate what she posted.
I strongly agree with this statement. It's very simple, if its not automated or mechanical, it's discretionary regardless if the method is rule base or not. For example, if someone say I don't enter trades 10 mins before schedule economic events to 10 mins after schedule economic events...that's a discretionary rule (not automated/mechanical trading) trading tactic involving the entry side of the trade method. I myself am primarily a rule base discretionary trader while about 15% of my trades are intuition discretionary while the latter relies heavily on trading experience.
No excuses about coding difficulty. Just about anything can be coded. Rules-based discretionary mix, sure? Filter on the full moon or the high tide? Sure. Counting bars, HL & LL combo. A bearish bat harmonic pattern forming? 24 bars passed and trade not in the green, cut it? It's a fed day so adjust rules? Sure. It wasn't until I automated my first discretionary system that found the holes that would have eaten the edge over time . Knowing when your edge is diminishing..gold. If you can describe it, rules-based, it can be built. (There are threads out there showing coding PA did not result in all these stellar claims of success) Still waiting for the Al Brooks magic indicator.
Which is why a level headed trader can beat a bot They may be quicker at executing.., we're more flexible and adaptable, not to mention we can anticipate Go figure RN
Agreed. I could still defeat computers at expert chess up to mid-1990's because I could sense the algorythm and consistency behind the decisions made. I would steer the game to a type that the rules didn't apply if I could. I did that with human opponents as well. That is where trading is headed now I suspect now. We know the exceptions, robots (so far) don't. Those that win now, use computers for the routine work and do the creative parts. I think most of the traders now that still succeed have some part of discretionary in their systems. System edges are easily picked off by computers, since they can be programmed and thus detected and destroyed by computers. Just my 2 cents worth.
Similar day to 5/22 (in that we took out previous days high and also previous days low).....have we seen the highs? I daytrade so this isn't my specialty (picking long term tops/bottom)
What's the code for telling automated trading system to "ignore" any entry signal that occurs within 10 minutes of any North American or European schedule market event or any breaking global news event. The above can be easily executed by a rule base discretionary trader.