So, I understand this is a dumb question. But can anyone explain the point of trying to understand the market thoroughly if you are using a mechanical system? Doesn’t a mechanical system apply no matter what the market is doing? If so, what is the point in updating your trading journal to try and “frame” the market?
I can only ask a question like this here, cause I know the answers right in front of my face and i’m just not seeing it. So thanks for responding if you do!
I guess the mechanical system still needs to be set up. Or based on what would a machine “know” what to do?
Its a perfectly logical question but its based on the assumption that there’s a mechanical system in front of us that always works.
Analysis provides a framework for when and how a mecanical system is executed.
Part of that analysis is to determine what market conditions are optimal for trade execution.
I try to remain as mechanical as possible, but that doesnt mean I try to understand what the market is doing. On the contrary, im fully aware that I have no idea what the market is doing or going to do.
Instead, I wait for the market to present the right conditions for a low risk setup, then I use that opportunity to execute my strategy as mechanically as possible.
Yeah but you need to understand what the market is doing in order to identify the ‘right conditions’, right?
Instead of trying to figure out what the market is doing in a general sense, I try to understand how the market is setup in relation to my strategy.