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To: xstuckey who wrote (2703)	1/28/1998 9:29:00 PM
From: Richard Estes	Respond to of 12617

If you were able to back test your system. Which is very, very difficult to do with intraday data. You could hvae "trust" in it. A position trader has more data available and better tools to back test and see their system perform in all types of markets and life cycles of a stock. They can "trust" a buy/sell based on past performance. Very few have say 5min data on a stock for more than a few months. Without back testing, It is hard to make that buy/sell. But, I wouldn't want to wait for a tickle in my belly.

To: xstuckey who wrote (2703)	1/29/1998 10:00:00 PM
From: Eric P	Read Replies (2) \| Respond to of 12617

X: What do you mean by "you infrequently get to make a trade that you think will actually produce a positive result." Does this mean: 1) Your mechanical system is very selective and makes only infrequent trades; or 2) That the signals you do get don't "feel" like winners at the time of execution. You also said " I envy those who trade "by the seat of their pants" because you at least have conviction going for you, a luxury rarely afforded by my model." It would seem that one who uses a mechanical system would have a much stronger conviction due to the confidence gained by backtesting your system. I am a strong proponent of mechanical trading systems. Acknowledging that it can be difficult to convert intuition into a system of mechanical rules, the benefits of mechanical systems are many. -Eric