How to know whether a trading system is more suited for me or a discretionary trading strategy?

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Ah… I get your question now. :slight_smile:

Here is the thing, 90% of the profitable traders out there are those who have a system and stick to it. 10% are those who are born with some special skills and can still consistently win by trading using their gut.

So the question you have to ask is, are you that special one in a million person who is born with the skills (like a tendulkar, Messi, Lata mangeshkar, I mean born genius). If you haven’t already made money trading this way, I guess it is safe to assume that you are not a trading genius and best to move into a mechanical/systematic way of trading. If you are making money trading using your gut, Lucky you, All you need to figure out is a way to scale up without being scared.


Confused on your question, can you detail it a little more.

Sorry for late reply Nithin. By system I mean that the strategy is black or white, means your strategy generates a signal, and if it buy you simply buy, and if its sell, you simply sell. There is no room for discretion(Madan for example is a system trader)
Joby for example is a 100% discretionary trader. Now discretion may differ from person to person. Some may have 70% rules and 30% is discretionary, the ratio varies from person to person. Just to give you an example, I may have a strategy that gives me buy/sell signal on 15 mins , but I take the buy signal only if daily trend is up. So the setup on 15 mins is black and white, no discretion whatsoever, but the trend on daily all about how I look at it. If it looks up, then I buy. If its down/sideways, then I negate the 15 mins setup.
Let me know if there is anything else. You could also google ‘system vs strategy’ for a better understanding.

Nice way of putting it :slight_smile: