Systematic Trading

I am late in writing this note today. As mentioned yesterday, I have cut my long positions on the Nifty when it broke below 5056 in the morning today. This is not a happy feeling. Clearly everything is still impacted by the European situation. DAX is on the verge of becoming a SELL. I would sell it if it breaks below 5819. Similarly S&P is a SELL below 1198. Both the SELLs can get triggered today.

The only thing I am happy about today is that I am not yet short. I have just covered my long positions. This allows me the luxury of not worrying about my position. If only there was some nice movie on TV today or some nice sporting action that I could watch!

Having said all this, I want to highlight that I am still positive for the year. I attribute this completely to the fact that I have been driven by a system in my trading. If I was a discretionary trader, I am pretty much certain I would have found it impossible to keep up with the market. The system performance this year makes me a stronger proponent of systematic trading.

Finally, I happened to read Traderman's Diaries again. Yesterday he was unnaturally quiet. The only thing he wrote was " Dear Diary, Everytime the phone rings, I jump. I am dreading the phone call. The Nifty was so close to breaking above the resistance of 5150-5200 and I was so waiting to call my friend. Now that loser will gloat and will want to call me" Life Suuuucccckkks... I hate the markets.... Why cant it go in my direction for once"