|
PureBytes Links
Trading Reference Links
|
In a message dated 12/06/1999 8:39:21 PM Central Standard Time,
markbrown@xxxxxxxxxxxxx writes:
<< I claim that all successful trading methods that have reasonable
history of consistent profits can have their roots traced back to
sound mathematical principles.
In other words a discretionary trader does not exist, if he shows a
consistency for making profits. Why? because he actually is using some
reproducible mathematical sequence that he just hasn't had the
privilege of defining in mathematical definitions. Thus by observation
of others and to himself he appears to be a discretionary trader but
in fact he is not.
To sum up the claim of discretionary trading is just an excuse for
inadequate programming or a feeble attempt to disguise a non existent
trading method.
****** Some pit traders program their brain by watching human behavior on the
trading floor rather than programming pure numbers into a number crunching
computer program. They may have simple rules for a trading system they can
execute without a computer. But the filters they use are situational,
qualitative and quantitative. I would classify these traders as
discretionary. Certainly they are using their experience to classify certain
behavior, which could be broken down to statistical situations and tabulated.
In that sense you are right about stastistical basis for decision making.
But their computer is their brain and that is why I call them discretionary
traders.
Regards,
John J. Lothian
Disclosure: Futures trading involves financial risk, lots of it!
|