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Random shisha-fuelled thread on the development of my trading system, and some thoughts on discretionary trading.
In the past year or so, I’ve moved away from strictly-defined setups and trade parameters.
In the past year or so, I’ve moved away from strictly-defined setups and trade parameters.
Previously I’d trade under fairly strict circumstances.
I’d collect stats for setups & try to reduce the space for ‘random’ decisions.
Level selection, candle closes, price patterns et cetera were very prescriptive in nature.
I noticed something peculiar. It was recurring.
I’d collect stats for setups & try to reduce the space for ‘random’ decisions.
Level selection, candle closes, price patterns et cetera were very prescriptive in nature.
I noticed something peculiar. It was recurring.
At certain points, the market would ‘jump out’ at me.
I’d get hints at a level that one side was going to eat shit, price was going to squeeze to another level, and so on.
Given that w/e I was seeing wasn’t part of my strict system, I’d ignore it.
And watch it play out.
I’d get hints at a level that one side was going to eat shit, price was going to squeeze to another level, and so on.
Given that w/e I was seeing wasn’t part of my strict system, I’d ignore it.
And watch it play out.
What’s the solution?
One part of me wanted to rush to systematise what I’d observed, but it was never the same thing twice.
Slightly different context, specific nuances, and stuff that generally didn’t lend itself well to strict rules.
Especially the lower time frame trades.
One part of me wanted to rush to systematise what I’d observed, but it was never the same thing twice.
Slightly different context, specific nuances, and stuff that generally didn’t lend itself well to strict rules.
Especially the lower time frame trades.
I started employing more discretion.
If something ‘made sense’ *there and then*, I’d get some exposure.
I’d still journal and make observations about recurring features, but it was slightly different every time.
Some were losers, but my expectancy crept up. It was working.
If something ‘made sense’ *there and then*, I’d get some exposure.
I’d still journal and make observations about recurring features, but it was slightly different every time.
Some were losers, but my expectancy crept up. It was working.
As a result, I moved away from strictly-defined setups (0 or 1, valid or invalid) to making the best, reasonable assessment of the specific context in front of me in that moment.
From narrow rules to a broadly-defined framework.
What about the tools for trade identification?
From narrow rules to a broadly-defined framework.
What about the tools for trade identification?
The tools haven’t changed.
Levels, candle closes, price patterns.
But my mindset is different.
I view these tools not as trade triggers, but as clues. Pieces of the puzzle; evidence of direction in a specific context there & then.
I build an evidence-based case for a trade.
Levels, candle closes, price patterns.
But my mindset is different.
I view these tools not as trade triggers, but as clues. Pieces of the puzzle; evidence of direction in a specific context there & then.
I build an evidence-based case for a trade.
I still think beginners should start on the stricter side.
Build a system, have a framework, patterns you recognise etc.
With experience, if you really want to be a discretionary trader, it doesn’t hurt to employ more flexibility with experience.
No 2 setups are identical.
Build a system, have a framework, patterns you recognise etc.
With experience, if you really want to be a discretionary trader, it doesn’t hurt to employ more flexibility with experience.
No 2 setups are identical.
My approach is now more investigative, open-minded, and detective-like. Piecing together clues from price.
This thread may read like total bollocks, but I wanted to do my best to convey the evolution in my own trading.
Maybe it’ll help someone, may be not.
/thread
This thread may read like total bollocks, but I wanted to do my best to convey the evolution in my own trading.
Maybe it’ll help someone, may be not.
/thread
