The Option Alpha Podcast 231: The 10 New Trading Psychology Challenges Emerging from Autotrading
13 snips
Jul 31, 2023 AI Snips
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Stop Obsessive Manual Overrides
- Avoid obsessively overriding automated trades and let bots run to produce reliable performance data.
- Improve systems via automated updates, not by manually rescuing each trade.
Too Many Checks Strangle A Strategy
- Over‑engineering entry checks can straitjacket a strategy and prevent trades from executing.
- Excessive preconditions slow bots and destroy the strategy's core intent.
Trade Events With Rules, Not Reactions
- Avoid acting on short‑term events like Fed speeches by stepping in manually; build event handling into your bot instead.
- If your strategy can't trade through earnings or Fed days, it lacks resilience and needs redesign.