BarroMetrics Views: Quantified Trading
“Do you believe that quantified trading can be successful?”
Thanks Joan for the question.
I certainly did not mean to give the impression that I am against quantified trading. Indeed, I often refer to Rob Hanna’s “Quantifiable Edges” as a means of checking my reasoning.
What I did mean to convey, is that quantified trading does not suit my personality. At the end of the day, a trading method needs to suit our personality for optimal trading results. A method that does not suit, is more likely not to consistently executed. For example, many years ago, I had a look at Drummond’s P&L Dot approach. I found it logical and well taught. I spent a year learning to apply it; but when it came to real-time trading, I always felt uncomfortable; so I dropped it.
Now, anticipating a possible question: If I am uncomfortable with quantifiable trading, how come I use Quantifiable Edges as a reference point?
I find Rob Hanna’s approach rigorously tested and researched. For example for July 23, Rob said in his blog, quantifiableedges.blogspot.com, “The 3-Day Pattern That Suggests A Bearish Edge For Today “.
You will know from my own blog yesterday that I shared this view. But I don’t find Rob’s work so useful when he and I agree. It’s when he and I disagree that I derive the most benefit: the disagreement prompts me to check my assumptions. This does mean I’ll automatically change my mind, but I have found it useful to check my assumptions.
If it suits your personality, robust quants is a way to go.