I've been using TradeStation for awhile and I have built a few automated strategies that are profitable, but not enough for me to have enough confidence to go live with them. Every time I try to base a strategy on a specific set of rules and then backtest it and look at the results trade by trade, I realize that price action is too often dictated by simple support and resistance levels, not indicators or whatever the basis of my strategy is. I've always told myself that psychologically, I would really require clear evidence of a mathematical edge before I'm able to trade, but making up rules based on support and resistance levels is very difficult from a programming perspective. It really is more of an art than a science, which is annoying to me because I like to keep things objective and logical. I used to read TA books when I got into trading about 10 years ago and I loved it and now I think it's mostly nonsense and far too subjective. I want to eliminate as much of the subjectivity in my trading as possible, but the more I study price action, the more I find that there are way too many variables for me to program into an automated strategy. I feel like I might as well just trust my own instincts and trade on a discretionary basis using my own pre-defined set of rules and price points that are particular to each individual trade instead of coming up with some blanketed strategy. Is there anyone else that feels the same way or has had the same experience?
I've thought of trying a semi-automatic system. Where i use discretionary entries and have the program manage the trade from there on. The biggest problem i have with that type of system is that it's not really backtestable so you don't know how it will do till you do it.