My Journey In Technical Analysis
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The Traders who perform well have tremendous confidence in there system,this in turn reduces the anxiety that traders have when in a position, causing them to be less emotional about the trade.emotional factor can be reduced if we understand the subconscious mind...feeding subconscious mind ,that we cannot control the outcome of a trade,except managing risk with MM,nothing is in the hands of trader is must,for better understanding on this concept of ,The power of subconscious mind by Dr.joseph murphy is good read.
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Any reason why you believe so? If setups are all similar, then using same mechanical rules as trade management over them can work. Why does volume matter here ? Ultimately its about having an edge over large sample of trades while living with the randomness of any small group of trades.
Anyway, i am trying to do that and its working good. Mechanical testing can find/show what actually works over large sample rather than using arbitrary rules ( i used a mech approximation as signal and now apply same over my trades). Using Systematic trade management has been the final difference for me, initially i struggled with a different discretionary approach for TM with same setups. I use a small bit of discretion but not much in TM.
Anyway, i am trying to do that and its working good. Mechanical testing can find/show what actually works over large sample rather than using arbitrary rules ( i used a mech approximation as signal and now apply same over my trades). Using Systematic trade management has been the final difference for me, initially i struggled with a different discretionary approach for TM with same setups. I use a small bit of discretion but not much in TM.
But mechanical does not have to be complex, complex is what can result in overfitting.
So something like where to place stops - tight/wide, should i trail, when should i trail, how far back, donchain style or atr style etc can be tested quickly. For me it resulted in simplification and understanding of how different styles produce different outcomes for my setups . Tight stops dont work well for my trades, trailing is better done once price moves etc.
Just my point of view, good day.
So something like where to place stops - tight/wide, should i trail, when should i trail, how far back, donchain style or atr style etc can be tested quickly. For me it resulted in simplification and understanding of how different styles produce different outcomes for my setups . Tight stops dont work well for my trades, trailing is better done once price moves etc.
Just my point of view, good day.
Bhai !!! first you said entry will be by discretionary and exit or tsl on mechanical way, this is complex way IMO,Mechanical is always simple,main issue is with the DD,which trader has to accept if he wanna follow the method. any trader including me started with floor pivots,support resistance,chart patterns,price action with candle commentary as well as structural pivots (whether vp's and mp's or normal swing points), i settled with Market Profile along with Demand and Supply !!!
Yes !!! tight stops don't work, ATR or donchian channel is good idea to some extent,Many are using tight stops with Structural pivots , (SL below or above MP) ,lot depends on back test and traders mind to accept the thing !!!
Yes !!! tight stops don't work, ATR or donchian channel is good idea to some extent,Many are using tight stops with Structural pivots , (SL below or above MP) ,lot depends on back test and traders mind to accept the thing !!!
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Yes discretion in entry selection adds some complexity over simple mechanical signals, but it can also add some value in pattern recognition and context.
Drawdown is for everyone, i dont think discretion can eliminate it, maybe mech has more but in turn it is probably less emotional in day-to-day trading, esp if automated.
Yes, Discretion can also add a lot of confusion. I had very tough time with NiftyNirvana and also with Pivots + tight stops. Pivots is more structural and less PA. Made progress only after following Adam Grimes for a few years - really great book and blog among other things.
Just saying that mixing discretion + mechanical can also work - there is no problem there.
Even for entry - mechanical helped me understand how my market and TF works and then i use that as info for my discretion.
Ex Open hour in stocks is mean reverting, or atleast not trending for my setups/TF. I use that to avoid trades in open hour and then look for my kind of pullbacks later.
But the edge profile with discretionary setups has been better than mechanical over same period in my testing so far, so it has value too + there is room to get better.
So, both can help each other. If we do it haphazardly obviously it wont work.
Pure discretion is hard to do. Adding systematic elements to it is much easier. In another forum, many traders use a mix of systematic and discretionary approaches, with more discretionary in trade selection and more mechanical in other things ( filter/Trade management/position sizing ). So maybe 10% discretion + 90% mechanical.
Drawdown is for everyone, i dont think discretion can eliminate it, maybe mech has more but in turn it is probably less emotional in day-to-day trading, esp if automated.
Yes, Discretion can also add a lot of confusion. I had very tough time with NiftyNirvana and also with Pivots + tight stops. Pivots is more structural and less PA. Made progress only after following Adam Grimes for a few years - really great book and blog among other things.
Just saying that mixing discretion + mechanical can also work - there is no problem there.
Even for entry - mechanical helped me understand how my market and TF works and then i use that as info for my discretion.
Ex Open hour in stocks is mean reverting, or atleast not trending for my setups/TF. I use that to avoid trades in open hour and then look for my kind of pullbacks later.
But the edge profile with discretionary setups has been better than mechanical over same period in my testing so far, so it has value too + there is room to get better.
So, both can help each other. If we do it haphazardly obviously it wont work.
Pure discretion is hard to do. Adding systematic elements to it is much easier. In another forum, many traders use a mix of systematic and discretionary approaches, with more discretionary in trade selection and more mechanical in other things ( filter/Trade management/position sizing ). So maybe 10% discretion + 90% mechanical.
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Nice to see that,you are able to use both discretionary and mechanical ways..,I’m just pointing the psychological skills one should adopt for trading this separate schools,yes,Many PA methods are hard to trade,irrespective of the mechods,YTC pivots,faced blank area when I was starting to watch both Vp along with OBV,later realised that OBV gives late entry,so settled with my old school,does this mean they won't work??? no..there are many who are using them successfully.
Many cannot adopt Market profile and demand supply methods ,so human caliber ,psy place an important part in that adaptation,at present I’m only sticking to single setup in intraday(pull back),but settled with mechanical way all together in all intra/swing
Please share the psy.points which you faced in combining both,have your strike rate improved,profit maximisation or profit booking improved ?
Many cannot adopt Market profile and demand supply methods ,so human caliber ,psy place an important part in that adaptation,at present I’m only sticking to single setup in intraday(pull back),but settled with mechanical way all together in all intra/swing
Please share the psy.points which you faced in combining both,have your strike rate improved,profit maximisation or profit booking improved ?
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