Live Trading Scenario

In a live trading scenario, is there ever a time when fundamentals or macro events would cause you to step in and override your systems?

I would say that if I was to override a system it’s not because of any macro or any fundamental view, it’s because of an emotional input. Have I done it? Yeah, of course I have. Even though I have been trading for thirty years there’s always that time where you think, “Oh this is not going to be good.”, but that rarely happens –very rarely. It certainly does happen to less experienced traders quite regularly. It will tend to happen more to people who doubt their strategy. But if you have complete confidence in your strategy then you’re just going to stand up to the plate, swing that bat, and put your trades in. That’s the bottom line.

I’ve had situations where I’ve seen China down 6% and Japan down 6%, and U.S. futures are down 2% in the night market, and I’ve got one hundred buy orders to put in the market. There’s certainly lingering doubt in my head saying, “Oh gosh. This is going to hurt.”, but nine hundred and ninety-nine times out of a thousand I will go ahead and place those trades. Usually that one time when I don’t is going to be a stonker of a night, and I’ve missed it. You’re going to be damned if you do and damned if you don’t so you may as well follow the system. That’s what it’s designed for.