The Flaw in Trading System Reasoning...?

Discussion in 'Strategy Building' started by Remiraz, Dec 14, 2004.

  1. Again, trying to connect the two doesn't make much sense.

    Someone who is completely aware of his reasoning for placing a trade along the lines of what you cited earlier (psychological, geopolitical, environmental etc) will not care much for the statistical history of that particular trade, and in certain cases will even look to be more aggressive precisely because the position has a poor track record in the past given similar circumstances -- as those are the occasions where outsized positions can most easily opened and exited profitably. The trader relying primarily upon backtesting/statistics would not even consider this possibility, as it makes no logical sense whatsoever in the manner with which he views a market "edge".
     
    #91     Oct 23, 2005
  2. nitro

    nitro

    explode?

    nitro
     
    #92     Oct 23, 2005