Posted: Sat Apr 26, 2003 4:31 am
Hi all,
I trade on a long-term trend following basis in the futures markets but I do NOT trade a completely mechanical system. I do trade very systematically though. For example, there are several base criteria that must be met before I trade. These could be codified into a system. Then I use pattern recognition to set a stop and make the final decision of whether to enter a a trade. I also only risk the same amount of capital per trade so every trade is the same.
This is probably because I do not have any significant programming experience as 100% mechanical trading does appeal to me.
My question is, do you feel that any subjective element added to a systematic trading process can only worsen the results? Is it the case that although I feel that I can outperform a purely systematic approach simply a human misjudgement?
I would be very interested to hear people's opinions on this.
Thanks
rs
I trade on a long-term trend following basis in the futures markets but I do NOT trade a completely mechanical system. I do trade very systematically though. For example, there are several base criteria that must be met before I trade. These could be codified into a system. Then I use pattern recognition to set a stop and make the final decision of whether to enter a a trade. I also only risk the same amount of capital per trade so every trade is the same.
This is probably because I do not have any significant programming experience as 100% mechanical trading does appeal to me.
My question is, do you feel that any subjective element added to a systematic trading process can only worsen the results? Is it the case that although I feel that I can outperform a purely systematic approach simply a human misjudgement?
I would be very interested to hear people's opinions on this.
Thanks
rs