How do you daytrade?

Hi,

Im very keen what proportion of daytraders trade using a mechanical system and what proportion trade on a discretionary basis.

Firstly some definitions so we are all on the same page.

For the purposes of this poll:

*Daytrader = a trader which trades any instrument (equities, futures, forex) using a timeframe smaller than daily (end of day). eg. tick, 1min, 5min, upto hourly, etc.

*Mechnical system = a system which has been backtested.

So let's see the results.

 

Your definitions seem a little odd.

It's as if your saying there's no mechanical system that day trades.

Thus, you only listed two choices when you should have listed more choices to reflect what's really occurring with traders.

* Day trader that uses a mechnical system (can be backtested via a code along with being automated).

* Day trader that uses a rule based methodology (no subjectivity and it can be backtested via either a code or manually).

* Day trader that uses a discretionary methodology (involves subjectivity and cannot be backtested).

Mark

 

I think the ratio would be astronomical in favor of descretion. Designing an automated dayading system (Profitable) has got to be one of the toughest things to do that I know of.

 

look what happened to automated traders in august.

 

Enforcer, i'm sorry to say i don't know much about automated trading, though i would like to know more. Was curious to know exactly what did happen to program traders in August. Could you elaborate?

 

Hi Mark.

THis poll is ONLY for daytraders.
So its not a choice between daytraders and mechanical systems.

Its for DAYTRADERS ONLY to tell me how they trade.

Either mechanically or discretionary.

Rule based methodology under the definition for this poll CANNOT be backtested so it goes under the discretionary option.

Nizar.

 

I agree. Nobody said it was easy.

 

Ok...I see now what your trying to say in your poll.

In that case, you should obviously get an overwhelming number using discretionary instead of mechanical.

I've seen many polls in the past like this...

Usually it ends up 4 to 1 or 5 to 1 for discretionary day traders versus mechanical day traders via similar definitions your using.

Mark