Thursday, April 5, 2012

Van Tharp Article

In case you missed it, here is a link to an article I wrote for Dr. Van Tharp.

Let me know if you find it interesting!


4 comments:

  1. Your writing is impressive! Very detailed and right to the point. I am quite keen on how you work on your "hunch" weakness.

    Is hunch and intuition the same thing? Do you get out of a trade earlier or later based on experience? If everything is based on systems, then what is the value of a human trader?

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  2. Thanks Scott - I appreciate it!

    FTS - Thanks. I guess I do consider hunch and intuition the same thing. I try never to use it, unless the system is designed that way. Otherwise I just follow the rules.

    The value of a human trader in a 100% rules system is 1) to develop the system in the first place! and 2) to "work" an order if necessary. For example, if a system says enter Sugar next open, I don't want to put a market order in, since volume at the 3 AM open might be light, and I might get a bad fill. So, sometimes I'll use a limit or stop order to enter. Many times I can get a better price doing this. I think if it was all automated, my performance would decrease somewhat.

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