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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (14195)	9/22/2001 12:40:37 PM
From: OZ	Read Replies (2) \| Respond to of 18137

Regarding why most systems focus on stocks: The nature of a stock changes more rapidly than the nature of an entire market. That is almost exactly the answer that I was going to give on the subject until I read that you had already. I think a a rigid system will always work better on an Index, Futures or even the Q's than on a individual stock over a period of time, though on individual days the same system may work quite well on stocks. I think that systems are great for some people and that they simply should not or cannot be used by others. They are for people that perhaps cannot "pull the trigger" without some kind a quantified data, people that seem to need a percentage win ratio (over 50), people that may be too emotional to trade discretionary or even just those that really enjoy spending lots of time doing such analysis in an organized fashion. Trading on a purely discretionary basis can be very hard on ones ego and emotions. We have to accept the full blame for every move we do. I realize that a system trader has to do the same, but it takes some of the pressure to know that one will buy or sell when "this crosses that" and if it does not work, they can say that their "system" did not work or that it needs tweaking. This is much more pronounced when buying canned systems. If you are building your own systems then you could be called a discretionary system user, since you are building them and using them at your own discretion and with ownership into the system. I personally do not care if my win ratio is 40% and I lose on the other 60%. What I care about is the bottom line at the end of the day. I guess what I do is use a systematic approach to discretionary trading. Oz