Does Mechanical Trading Bring Peace of Mind?

Quoting dof

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Exactly, the rules are good, but not fixed, it the mathematical way. There are plenty of times when you have to decide. Not you, your experience.

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Quoting aparsai

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This is exactly my point too. If you are not experienced you can't make sure that your subjective decisions are correct. You have no means to measure the correctness of your decisions. That's why mechanical trading is a better means for new traders. This will help them to eliminate their unexperienced way of judgment. My point is that manual trading is good for experienced people only.

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Quoting dof

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If you don't have enough experience you won't make money! A mechanical system is not the difference. You have to make experience.

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Quoting aparsai

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A fully automated mechanical system is independent of your experience. A successful system will make money no matter you are experienced or not.

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Quoting Skyhook

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I think that mechanical trading still requires experience to be involved. Aparsai, the reason you're (and now me, thanks to you, haha) doing well with your mechanical trading is because you used your experience in the markets to develop a system to take care of trading for you.

Any mechanical system is still a system, and a system is designed by a person. It would reason that a person with more experience in trading should program a better system that is traded mechanically and thus, add to their portfolio of trading tools. I would be willing to wager that you have at least two to three different systems that you trade, Aparsai?

I personally have two different mechanical systems in place and I still trade a third by hand. The reason there are so many successful systems is simple: the point of trading is not proving you're wrong, but proving I'm right, which shows up in our profit margins. And since there are so many systems that work, why not try and take advantage of them? After all, it takes more than just a hammer to build a house!

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Quoting aparsai

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I quite agree with you that a successful mechanical system is only developed by a knowledgeable person. However, if you're going to use it you don't need to be that experienced, are you?

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Quoting Skyhook

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The only problem with this thinking is that then you completely forego any responsible or critical thinking on your part regarding the system. I agree with the "paid speakers crowd" that tell everyone that in order to truly make a system work, you have to make it your own special blend, mechanical systems included. You have to take responsibility for whatever system you use. An EA does not preclude you from having to take care of the system. It is only doing what you tell it to do. If you tell it nothing, it does nothing.

Granted, things that you can and/or do influence might be a bit more limited in scope with a mechanical system, but there are still plenty of things to be changed. Especially considering that mechanical systems by nature must include money management techniques, which vary widely from person to person.

I'm not trying to agitate you or flat out disagree with you, just pointing out the difference in opinions.

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Quoting Craig

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If you live in New Zealand, like me, then you have little choice but to automate your trading, unless staying up all night looking at charts then going to work the next sounds like a good time. It is true that some things can't be coded, that does not preclude the things that can be coded from being good.
Having to still work for a living (as a programmer), I am pretty fried by the end of the day. Trading all night is less than appealling at this point & being tired is not a good state for making descions. So I automated my trading, my computer does not revenge trade or place stupid trades after half a bottle of wine. So for me it's automation all the way, far less stress, far more $$$.
I was a shite hands on trader, I just could not get my emotions under control, half the battle was recognizing this fact, everybody has to find thier own way.

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Quoting randomlight

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Does Mechanical Trading Bring the Trader Peace of Mind??????


I don`t mean to be a jerk or rain on anyone`s parade here but
why are you discussing the merrit of something that has never even been proven to exist?
If there was such a thing as a set and forget mechanical system for forex it would be akin to knowing the lottery nos. before the lottery draw.
Prove to me that such a system exists and tell me where I can buy it.
There is no question that it would bring me peace of mind as well as everything else I ever desired.
Just my 2 pips, I wish someone could prove me wrong ,in fact I would pay big for it.

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Quoting dof

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Let's draw som conclusions:

- Mechanical trading is excelent when your manual trading can be coded. Some say everything can be coded, some say not everything can
- To develop a mechanical trading you need to have experience in a manual trading witch is working
- Mechanical trading eliminates emotions like fear, revange...
- Mechanical trading can help you when you can't watch the market even if you don't wanna go 100% mechanical

- The most important, the purpose is money, if you have a mechanical system witch is making money for you, no matter what everybody else say about mt, you are right ; if you have a manual trading witch is making money for you and you think it can't be coded, no matter what the other say about mt, you are right.

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Quoting dof

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Let's draw som conclusions:

- Mechanical trading is excelent when your manual trading can be coded. Some say everything can be coded, some say not everything can
- To develop a mechanical trading you need to have experience in a manual trading witch is working
- Mechanical trading eliminates emotions like fear, revange...
- Mechanical trading can help you when you can't watch the market even if you don't wanna go 100% mechanical

- The most important, the purpose is money, if you have a mechanical system witch is making money for you, no matter what everybody else say about mt, you are right ; if you have a manual trading witch is making money for you and you think it can't be coded, no matter what the other say about mt, you are right.

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Quoting brick911

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I'm hoping it works for me. I have chosen a mechanical system, but still screw up out of fear. I'm only 4 days into it. Right now I'm part of that 95% who loses in Forex. If I don't get my shit together and learn how to follow a simple plan without interference, not only will I have no pride, I'll lose my starting capital.

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