Mechanical or Discretional Strategy?

Mechanical systems or strategies have rules for everything, every situation, every action. Most or all things are fixed. Entry type or signal, bias, profit taking, stop loss setting. Some say you can't make a whole lot of money with completely mechanical systems. Some say with discretionary systems, you're prone to being controlled by your emotions.

What's your take on this?

For me what keeps traders unprofitable is discipline, and even the brokers know this. Brokers are feeding off trader indiscipline, Prop Firms have now joined the feeding frenzy. The whole retail trading business model is designed to feed off trader indiscipline.

When you trade using your discretion, you are more prone to become indiscipline, no matter how hard you try. You can spend 30 days being a good boy and sticking to your rules then you make a $200 profit but it only takes 10 minutes of being indisciplined to lose that $200. So, the brokers wait patiently for that day to come and you return the money back to the market

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@galaxy12 - 1 week ago

What do you mean by mechanical system sir

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@pho3nix_19 - 1 week ago

With mechanical systems, most traders become lazy, seeing as it's the system telling you what to do and not the other way round, hence they place all their trust in the system even when it might misinterpret some market informations. Take for instance, most mechanical systems which are trend following systems usually fail in ranging markets

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