DAY 2: The Limits of Discretionary Trading and the Complement Provided by EAs

Last time, I explained that discretionary trading and Expert Advisors (EAs) are not in a confrontational relationship, but rather complement each other.
Today, let's look at the limitations and risks of discretionary trading and consider how EA can provide complementary solutions.

Difficulties Unique to Discretionary Trading

As you know, the appeal of discretionary trading lies in the ability to make flexible judgments according to market intuition.
On the other hand, that freedom can sometimes be detrimental.

• Judgment errors due to mental swings
  Emotions such as fear of losses and the desire to let unrealized gains grow can heavily influence trading decisions.
  Haven’t you experienced situations like “I delayed the cut loss” or “I missed the entry”?

• Time and physical burden
  Discretionary trading is easily affected by daily routines and physical condition. You might stay up late worrying about the market or find it hard to balance with work.

• Difficulty in adhering to rules
  Even with strict trading rules, it is not uncommon to gradually compromise during actual trading.
  Many times you think, “If I had waited a little longer, I could have won,” which is another fate of discretionary trading.

Complementary Benefits Brought by EA

How can EA compensate for the challenges of discretionary trading?

1. Mechanical decisions not influenced by emotions
   EA detects signals and executes entries and exits according to predefined logic. Since there is no emotion-based hesitation or haste, decision-making drift is minimized.
   It increases the likelihood of reducing regrets like “I delayed the cut” or “I missed a chance.”

2. Freedom from time and location constraints
   Since EA automatically executes trades, you don’t need to stay glued to the market.
   You can spend time on verification and analysis, while trades themselves can be left to the EA, reducing the risk of disrupting your daily rhythm.

3. Adherence to rules and visualization of trading data
   EA continuously executes the prescribed logic with high reproducibility.
   Therefore, you can accumulate data without altering the original rules, and it becomes easier to backtest and forward-test results afterward, providing hints for system improvements.

Maximizing the Benefits of Discretionary Trading × EA

Discretion and EA are not perfectly handled by one alone,and many consider hybrid operation that leverages the strengths of bothto be ideal.

• Cover the parts where EA is weak (e.g., major fundamental changes) with discretionary trading

• Keep EA running continuously, and focus discretionary trading on events where the market is likely to move significantly

• Improve discretionary trading judgment accuracy using EA’s performance data

By adopting these approaches, you may achieve more stable trading and greater psychological leeway.

Today’s Summary and Next Time Preview

• Discretionary trading offers a strong appeal of “making decisions oneself,” but it also brings risks such as emotional swings and time burden

• EA enables “mechanical, highly reproducible trading,” which can greatly reduce these risks

• Combining discretion with EA can complement each other’s weaknesses and provide a higher-quality trading experience

In the next article (DAY 3), under the theme of “increased objectivity with EA adoption,” we will further explore how EA specifically reduces indecision and emotional risks.

Introduction to the EA I Sell

If you’re interested, please take a look at the EA I offer for sale.
https://www.gogojungle.co.jp/users/147322/products

Utilize your discretionary trading experience and gain a new weapon through automation.

The next article will delve into more practical points.
Please press “Read more” and continue learning together.