Poll: Automated or Discretionary, which has been more profitable for you?

Discussion in 'Trading' started by Zr1Trader, Apr 3, 2011.

Automated or Discretionary , Which has been more profitable for you?

  1. I find my Automated trading is more profitable.

    16 vote(s)
  2. I find my Discretionary trading is more profitable.

    20 vote(s)
  1. I would only like you to vote if you ...

    A. You have been profitable for the last 3 years.
    B. Trading is your primary income.

    Thank you .
  2. So no one has been profitable for 3 years or what?

    EDIT: ah there's a few votes.

    Feel free to share any thoughts on the subject as well. I personally find discretionary trading more rewarding. Emotions can still interfere at times though.

    If you want to share....

    Have you tried both methods?

    Why or why not has one or the other worked for you?
  3. emg


    Automated trade (Algor) does not work well for small traders because majority of small traders are not computer engineers or have a master degree in computer engineer.

    When a amateur tries to be a programmer and write script and backtested, it works perfect in sim. When it comes live, it becomes malfunction especially using a generic data feed and incurs loss. Possibly big loss. The script may ended up shooting 400 orders within 5 seconds.

    The automated trade is for professional traders, hedge funds, funds managers, HFT, and so on because they have enough money to pay a top computer engineer annual salary $150K. This is something a small traders do not have.

    This is another reason why more than 90% of small traders lose. They just lose!!!

    Good luck
  4. LOL @ emg... this guy is debbie downer if debbie downer was an idiot.

    i only just started trading, but i've worked with a buddy who needed his system programed and it was NOT worthy of being called programing...

    I dont know about HFT trading, but algorithmic trading is easy to program for someone with little to no programming ability.
  5. No offense but I didn't ask for a risk pamphlet for amature traders. I asked what you find more profitable and why.
  6. I have to question people who believe they will be rich with a completely automated system who do not have an extensive mathematics or programming background..

    Do you really think you are smarter than the smartest people and fastest computers in the world...

    The one positive since computers are mostly trading these days, You basically eliminated the riskiest parts of markets... people......
  7. I would say "algorithmic", not "automated". For example, I've gotten very good results on a certain class of algorithmic equities swing trades the last few months, but since the positions are held for days I don't need to automate the process of actually executing them. TWS' built in order handling is plenty capable.

    My bread and butter front month oil trading is the same way. I've got a text file that lists the rules (which I previously wrote) and I do what it says. But I don't have an automated implementation simply because none of the automation tools available do exactly what I want done.

    True discretionary trading is mostly a waste of time unless your account is so huge that trading macro is the only option.
  8. It's not like that sort of background is difficult to acquire. They do publish books on computer programming and math :cool:
  9. The system I helped program had only two key components and the script was simple and written in python.

    for arbitrage/hft you'de need C++ im sure.

    and yes you can be profitable...you just have to have a mathematically sound system...not that simple at all. But, for retail guys, you can definitely set up a simple script thats been backtested -- ofcourse you have to keep tweeking it.

    im new to finance so i have to figure the market fundas out first.
  10. Exactly!

    and my buddy's script was for oil as well.
    #10     Apr 4, 2011