This is funny when you step back and read what is really being said here and the other items you read in other posts. You have a method that works so long as you follow the rules rigidly. Human nature greed/worry/losing money etc make you deviate from them so the best way to overcome that is to do something which takes the emotions out of trading so make your system into an ea robot!! voila problem solved. The last thread I was reading was about the fact you should never use robots as they just do everything without any emotion and you should never do that. Ha if ever we were in an industry that was designed to always take as its set up so we cannot win. Merry Xmas
I follow my rules, especially the entry rules. I'd rather not enter the trade if I'm not sure about the setup.
The last time I broke my entry rules, was in May of this year. After a winning streak, I was overconfident and I saw a signal and I decided to take it, but my rule was to start trading 10 minutes later. Of course it was a losing trade
Instead, sometimes I'm not able to follow my exit rules. When I'm making a profit and I'm half way to my profit target and as soon as I see that the price looks like turning back I close the trade. I know it's not OK to do so, I can't know what the price will do next.
I'm still working on improving this part of my trading.
I follow the rules now... I didn't used too..and my winning percent went from 80 to 46.... Go figure.
Now I just set up my trades, and once I get filled I set up an OCO bracket, one of 3 things will happen, it will hit, stop out, or be somewhere in between. On day 4, I close the position if it didn't hit, or stop out.
This keeps me from making dumb decisions. Plus I don't have to watch the market all day, and it is better that I don't The only problem with that is some of the winners run higher, but at an 83% hit rate, I don't really care.
So far my system is contingent upon me following the rules.
Sometimes you just have to know when to break the rules. That comes from experience or gut feel... which comes from staring at the markets until you're so bored you tear your hair out.
Edit: I don't mean trade on gut feel when you're bored ****less. I mean stare at the markets until you're bored ****less. Then you'll get a feel for the moves and know when to stay away or exit early or take a trade that isn't relevant to your rules. I've lost count of the number of times I've just had a bad feeling about a trade, closed out for near enough breakeven then seconds later watch the market swing heavily against the position I would have been in. Spideysense!