Okay. The eye's bias can only cause you trouble to the extent that you don't have predefined and objective entry and exit criteria. If your criteria are valid, then they should keep you from being sucked into too much chop. What I fail to understand is how you can go about coding and automating a discretionary approach. That concept is well over my head.
There's a mechanical trading system which trades (a diversified basket of) futures contracts, whose central idea is the measurement of "choppiness". If its "Choppiness Index" is above some threshold, the mechanical system decides the tradeable instrument is currently Choppy, and uses one set of mechanical buy/sell rules to trade in the Choppy environment. However if the "Choppiness Index" is below another threshold, the mechanical system decides the market is Trendy, and it switches to a completely different set of mechanical buy/sell rules. They don't give the system away for free, instead they sell it for money. About the cost of a new laptop computer, give or take. If you don't mind spending that kind of money to buy a mechanical system, this one is called CATSCAN. (Choppy And Trendy Scanner. Get it?) Google can find it for you. I have no idea if you will like it or not. I also have no idea whether they'll refund your purchase price if you don't.
why this is so hard to understand....all technical analysis can be coded - so long as it is based only on the price and no fundamentals for that matter..
Because it has always been my understanding that only systematic trading approaches can be coded for automation. Because it has always been my understanding that discretionary trading is essentially the antithesis of automated trading.
i see....I assumed that discretionary trading can be systematic - it only uses your brain as a fuzzy system...I assumed that all trading is systematic...when you write a trading strategy into a pc you make it an explicit algorithm...while in your brain it can remain as implicit fuzzy construct....with many layers of hidden neurons )) hidden not only from everybody else but from you too!!)