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Mechanical Trading vs Manual Trading

  • Poll

  • Is it a good idea to replace manual trading with mechanical trading?
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  • Post #1
  • Quote
  • First Post: Nov 10, 2006 10:29am Nov 10, 2006 10:29am
I was wondering if it is a good idea to quit manual trading and just stick with mechanical trading.
It would be great if you explain why you chose an answer. BTW, my answer was "No, I prefer them both work hand in hand".

I'm a great fan of mechanical trading. However, there are many good opportunites out there that I prefer not to lose. For example, I've already made a substantial amount of money on news trading and I'd like to continue news trading. Nowadays, I'm very busy with my daytime work and miss many opportunities out there but this situation won't last long and I'll eventually get back to manual trading along with mechanical trading.
Hey fellows, feedback on this. Please.
Hi Aparsai,

I think not.
i think the system is great, especially if you program it to give you signs , with entry, stop and limit, but the discretion is yours if to enter or not.
The system is only technical.

But I must admit that usually the system is right, and my discetion not
Quoting trucco
Hi Aparsai,

I think not.
i think the system is great, especially if you program it to give you signs , with entry, stop and limit, but the discretion is yours if to enter or not.
The system is only technical.

But I must admit that usually the system is right, and my discetion not
Hi Trucco,

Thanks for your feedback.

Al
More feedback PLEASE.
Quoting trucco
Hi Aparsai,

I think not.
i think the system is great, especially if you program it to give you signs , with entry, stop and limit, but the discretion is yours if to enter or not.
The system is only technical.
But I must admit that usually the system is right, and my discetion not
Yes..Technical is always right!
"Invest With The Insiders, Not The Masses" George Muzea
Quoting Qu|cksilver
Yes..Technical is always right!
Thanks for your feedback.
Why i said technical is always right because technical can predict where the market will go, where the market will reverse and when the market will stop BUT what makes the market move the answer is "NEWS"

No offence, some people like to trade using technical and some people like to trade only when news comes. But for me i like to trade technically i hate news! (Fund=Money, Mental=Crazy)

But try to think when there is no news? the market will not move! Sometimes we need both.

QS.
"Invest With The Insiders, Not The Masses" George Muzea
  • Post #10
  • Quote
  • Edited 1:12pm Nov 12, 2006 12:39pm | Edited 1:12pm
Quoting Qu|cksilver
Why i said technical is always right because technical can predict where the market will go, where the market will reverse and when the market will stop BUT what makes the market move the answer is "NEWS"

No offence, some people like to trade using technical and some people like to trade only when news comes. But for me i like to trade technically i hate news! (Fund=Money, Mental=Crazy)

But try to think when there is no news? the market will not move! Sometimes we need both.

QS.


I agree.

The graphs always tell you what is happening, you dont need to make tons of economicla analysis, also because these often fail...
The only problem is that you need to stay out when you dont know how the market prepars to coming news. (like CPI this week).
technicaly talking I see a bit more of short on eur /usd also on pound/usd during asian session, and tomorrow morning a long run. But as US CPI is coming out, speculation on news expectation is always something dangerous

Note: Im putting again my discretion
I think its impossible to take compitlty away discretions unfortutantly
Quote
No, I prefer a semi-mechanical system that leaves the final decision to me.

I have chosen the last answer. The author always arranges answers by his meaning.



I believe mechanical systems are good support for trading. Not more.
Prof Herman
Hey guys, thanks for your feedback.
I'm 100% discretionary and for the first time in a year and a half of trading im showing two months of consistent profits. I've got one indicator on a 5 min and I trade the eur/usd price action. My indicator is a signal but it's not my trigger, my trigger is my dome. And ya I know 2 months isn't a lot of time but my account is moving north and that's what counts. Time will tell for sure.

I think it's more realistic to shoot for developing a simple long term system rather than trying to be 100% mechanical. I want to develop a longer term system myself so I can enter a postion with a stop loss and let it ride without having to baby sit it.
How you act is more important than how you feel.
I'm trading mechanically right now. I have to click the mouse, but I'm not letting my thoughts get in the way. Hopefully, I have chosen good systems, and my account will start growing. I'm only a few months in, so my hopes are that after much more experience, I can notice patterns and add my own discretion sensibly.
As for now, my discretion just gets in the way. Fortunately, I think I was able to admit it quicker than most newbies.

Bob
Quoting Warmagus
I'm 100% discretionary and for the first time in a year and a half of trading im showing two months of consistent profits. I've got one indicator on a 5 min and I trade the eur/usd price action. My indicator is a signal but it's not my trigger, my trigger is my dome. And ya I know 2 months isn't a lot of time but my account is moving north and that's what counts. Time will tell for sure.

I think it's more realistic to shoot for developing a simple long term system rather than trying to be 100% mechanical. I want to develop a longer term system myself so I can enter a postion with a stop loss and let it ride without having to baby sit it.
Good for you. Thanks for sharing your opinion with us.
Quoting brick911
I'm trading mechanically right now. I have to click the mouse, but I'm not letting my thoughts get in the way. Hopefully, I have chosen good systems, and my account will start growing. I'm only a few months in, so my hopes are that after much more experience, I can notice patterns and add my own discretion sensibly.
As for now, my discretion just gets in the way. Fortunately, I think I was able to admit it quicker than most newbies.

Bob

Good Luck. Thanks for sharing this with us.
I should think mechanical trading was condemned. If all the people buy proper trading soft? Who give them money?

I shall earn what you have lost


The First Law of Mr. Forex Constitution

Prof Herman
Quoting Leader
I should think mechanical trading was condemned. If all the people buy proper trading soft? Who give them money?


I shall earn what you have lost






The First Law of Mr. Forex Constitution

In the world of Forex with over 4000 interbanks and thousands of institutional investors and millions of retail speculators it's a dream to see everybody is using the same system. There are many people that think just like you and that's why mechanical trading is still a profitable system.
Quoting aparsai
...mechanical trading is still a profitable system.
are you sure that there is a profitable mechanical trading system?

Maybe mechanical trading could be profitable for a month or two.

IMHO mechanical trading is too dangerous.
Prof Herman
Quoting Leader
are you sure that there is a profitable mechanical trading system?

Maybe mechanical trading could be profitable for a month or two.

IMHO mechanical trading is too dangerous.
I beleive there is. A professional trader can make some twist and turns to a system to make it even more profitable but if there is such a system that is profitable - which I beleive such system exists - then mechanical trading can be profitable as well.

Since the market behaviour is dynamic no system can stay profitable forever. You can't even guarantee the duration a syste stays profitable. However, there are many approaches such as money management and risk management techniques that help you preserve and grow your capital investment. To me a successful mechanical system is the one that benefits from the combination of 4 elements:

 

  1. A resonably successful system (verified by backtesting, forward testing, and statistical studies).
  2. A method that is flexible to market conditions (at least to some extent)
  3. A system that uses money management techniques
  4. A system that uses risk management techniques

Good Luck,
Al

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