Do you ever use discretion in your trades? Put another way, do you ever override the system?

Our intention is to be 99.99% systematic, mechanical, non-discretionary traders. We never override the system, except in the most dire of circumstances.

I add that last bit about “dire circumstances” because should there be a catastrophic move in the market (think October, 1987, or September, 2001), we would definitely reassess our current position based on the specific characteristics of that specific market.

Models like ours are built with an instrument’s history in mind, and might not be suited for unique, extreme outlier events in the future. In those very special circumstances, we would apply extra analytical horsepower, and in some cases choose to override the strategy’s signal.

Posted in: About Our Strategy