Discretionary trading requires years of experience to work, but systematic trading can be profitable immediately. The speaker shares a "gapper short" strategy: short at market open, cover at close, use a wide stop to avoid noise. High win rate, skewed risk-to-reward.
You need a lot of experience to be a good discretionary trader, whereas if you're a systematic trader, you can realistically become profitable from day one with little to no experience just by following a strict, you know, criteria of entry and exit rules. So the most basic systematic short setup is the gapper short. So you short the open, you cover the close with a very wide stop, and this allows you to kind of weather the storm of all the manipulation and all of the games that are occurring during the day. And it just kind of quiets the noise because you're still going to be covering at the end of the day, you know, 90% of the time. If you have a wide stop, the probability of it being hit is very low. So your win rate is high, but your risk to reward is a little skewed.
