Greater confidence, greater relevance

Trader's Mindset

May 07

Both discretionary and system trading offer unique and selective benefits. One of the advantages that discretionary trading offers is the ability to adapt to changing market conditions. Trading tactics can be more relevant to the current market conditions at the cost of greater uncertainty (less confidence). On the other hand, trading systems are typically verified against many years of data increasing confidence at the cost of relevance.

Developing trading systems with shorter histories based on ideas derived from current markets may offer an attractive blend of both confidence and relevance compared to the alternatives.

About the Author

The author is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline. You can contact the author at