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Riley Robertson wrote:
> Hi List & Justin:
> When you suggest it is the System trader that can make a living,
> do you mean a trader who knows computer programming so well
> that he can write his own systems and use it?
> or a trader who is very disciplined and his attitude+trading habit is
very systematic?
I consider anyone who operates by a set of *written* mechanical rules,
to be a
system trader. Some I have seen employ teams of guys working around the
clock,
more commonly now people are using computers.
> If it is the former, does it mean all the discretionary traders are
losers?
The consistent big winners (in my observations) were all mechanical
system traders,
discretionary traders can hit the odd big win, but (in my opinion) lack
consistency
and are long term losers.
> If so, how can the discretionary traders pay someone to write the
programming for him
> without that programmer using the formula himself and trade with it?
The standard legal framework of Non Disclosure Agreements (NDA's) plus
someone's
professional reputation is usually enough to keep most things secret.
Not to mention the
average man on the street known nothing of data feeds, brokers, exchange
rules, contract
specifications etc. Trading isn't exactly something you can get your
head around in 5 mins.
The use of external programmers is something I would like to do more of
myself,
in fact I would like to sub-out my whole IT operation and concentrate
more on the
core trading.
Often I find myself modifying my trading ideas to fit in with TradeStation,
I have explored the path of professional programmers before and no doubt
will again.
The freedom to dictate exactly how you want the code to run, knowing it
won't be you
writing it is quite liberating for the mind!
Having said all of this... I am constantly stunned by the simplicity of
trading systems
used by banks & other institutions, often as simple as a single moving
average.
> RR
Justin
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