My code consists of a Bruce Lee-ian
approach to trading, with a solid ground of good habits (consisting of a cue,
routine and reward).
Focus on my reactions to trading; I
don’t know if I will make money today, but I expect to trade well. The market
will do what it will do. I’m able to detach myself from the outcome of every
trade; Detachment: it’s so easy when you’re not in it. Focus is on the ability
to detach, (identify the problem) and execute. If you have done the statistical
work and have a defined edge, when in trading detach yourself from the noise
(everything that distracts and leads to increased chances of trading errors)
and execute properly according to daily hypotheticals and overall plan. Even though it might seem on the surface
that we are enjoying the freedom to do whatever we want at any given moment
instead of following a trade plan, the fact is that leads to little or no
freedom at all. We develop bad habits
and often become a slave to them despite probably telling ourselves “I won’t do
that again”. Simply saying it, we find,
isn’t enough.
Process of identifying opportunities:
1) pattern recognition = reference point, 2) Price Action = Edge = Information
in the present = what is physically happening (add in to a trade, use
risk/reward matrix), 3) Technical Confirmation = lagging signal.
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| The quest for Edge |
Beware: far worse than simply not
taking the trades, there have been many times where I found myself taking
trades that were a direct contradiction to the data I have. So process
block to check if trade is not contradicting statistics should be built in. For
a process or habit to stay changed, people must believe that change is
possible.
