Systematic Advantage #39: Programming a system can be an eye-opening experience when you discover all the assumptions you were making in your trading process.
The process of programming a systematic trading system can be an eye-opening experience. It requires you to go through and translate the assumptions you were making about the markets into concrete rules and algorithms. This forces you to scrutinize each assumption and test it against historical data, potentially revealing any flawed logic or biases that may have gone unnoticed.
This objective approach helps you make more informed and rational decisions in your trading strategy, leading to a more disciplined approach for better results. This can be extremely beneficial for achieving consistent and profitable outcomes. Self-discovery and refinement are critical components of systematic trading that prove its value over time.
By programming your system, you can gain invaluable insights into the efficacy of your trading strategy and ultimately develop a more practical approach to the markets. In the end, this process can help you become a better trader.