RockTheLuker

However, you are not trading in a vacuum. You are assimilating data in some form from the market, then perhaps, if you are not a died in the wool system trader, you are applying fuzzy logic or a fuzzy algorithm. I submit that a "fuzzy anything" is not well understood and therefore is prone to less reliability and effiaciousness than a well understood decision making matrix even if forged through years of experience.

Hence my question to candle, how do you conceptualize the scalp? What are your thoughts? What data are you "synthesizing"?

But he won't give up the goods. LOL


ProTrader1


PS Magna, Candle is my brother, he knows I hold him in the highest esteem. :-D

 

Dearest Brother Protrader,

The esteem that you hold me in is most humbling. Your nod of approbation is worth more to me than my trading profits, for it is surely brotherly love that is the overruling factor, since we are humans, and love is what truly marks us out from the animal kingdom (perhaps with the exception of our dolphin brethren, which have also shown evidence of loving relationships).

Trade conceptualization is dictated by the directional collimation of price activity that is occuring within my coopted trade horizon. Moreover, and above and beyond the technical picture that I glean from the canvass of my trading screen, I will take note of current orderflow as manifested within the Level 2 environment. The latter is a point of great import, for if there is not at least a semblance of symphony between the technical picture and the Level 2 environment, then trading odds will be somewhat dequantitated.

Another thing, dearest brother, that I cogitate is a vital element to trading, is to have one's speculation aligned with Mother Market. Of course, there are many Mother Markets (just as there are many routes to Our Creator), so it is indeed a discretionary choice as to what you delegate to be the Mother Market of the moment... she may be the relevant Sectoral Index, the Nasdaq Index of Technological Enterprises, an Index of Futures et cetera.

The final element to the trading jigsaw boils down to gut feel. As I have previously alluded to, gut feel may constitute the subconcious synthesis of a systematic approach, garnered over many years of trading experience. At least, that is my retort to the systematic trading crowd who, like mercenaries in waiting, wish to condemn my discretionary trading behaviors at every opportunity.

With hearty feelings of oneness and brotherliness for you, my brother.

May you live long and prosper,
Candle

 

Magna,

Ahhh, the power of simplicity... an excellent précis of all that I have been saying, for which I commend you...

With the warmest of regards,
Candle

 

why would a systems trader condemn a discretionary trader? In most if not all the literature it is acknowledged that a good discretionary trader will statistically clean a systems clock. Now once you are managing large amounts money perhaps you must go mechanical but that is another issue.

Further as anecdotal evidence to the brothers of such an esteemed and exclusive fraternity I point to floor trader Lewis Borsellino. Perhaps one of the best discretionary traders there is. He employs and trains traders, he has a team of people to help trade the markets. I am sure he has access to a slew of systems experts and alas the system he is selling to the public is not doing much. Now to his credit he does not charge when his system does not make money for the month.

I wonder why candle anticipates hostile words from systems traders are there hostile systems traders on this board. Are we elitesystemstraders? After all if a person makes money trading who cares if it is done with a system or done with discretion. Personally if I could make more money with a mechanical system that I can daytrading I would use it in a second but noone has private mailed me one yet. I would like no more than 10-20 percent drawdown, frequent trading, excellent risk control and at least 40 percent winners. Thanks

P.S. I have trade station pro and wealth-lab if you want to send me code. If you do I promise to donate 20 percent of my profits to churches and charities. I will also sign non-disclosure agreements.

 

Sometimes I wish I could have systematic trading system too, but I am a control freak so it probably wouldn't work out anyway...

 

The discretionary aspect of trading is what I love. To me that is the true "edge". Once you got it, no one can take it away.