Day 28: Mental preparation for EA deployment — the beliefs discretionary traders should release

Last time (DAY 27), we conceptually compared successful and failed cases of EA adoption and identified the decisive points that separate light from dark.
Today, we will discuss the common beliefs that discretion traders tend to have when introducing EA, and consider how to overcome them.
Those who have already been actively doing discretionary trading may feel, “I’m uneasy about leaving it to automated trading,” or “I won’t be satisfied unless I see it with my own eyes.”

1. Anxiety that “I need to see it with my own eyes, or else it’s scary”

• Background of the belief
  The longer you have traded discretionarily, the more accustomed you are to watching market moves closely and deciding, “This is it.” Letting EA handle it may be a big hurdle because you have to let go of the sense of security that comes from verifying with your own eyes.

• Hints to let go

  • Obtain objective data through logic and backtests
    If you understand in advance how the EA enters and settles trades and confirm stability from past verification results, your anxiety will ease somewhat.

  • Hybrid operation that uses discretion as needed
    Instead of “complete laissez-faire,” you can leave some discretion by manually controlling operations during key indicators or during highly volatile market periods, which can increase your sense of security.

2. The preconception that “EA = taking a shortcut”

• Background of the belief
  Among discretion traders, some may hold a bias like, “Automated trading is cheating and making money easily is dishonest.” There is a certain elegance in earning through one's own skill.

• Hints to let go

  • EA adoption is closer to “systematization”
    It’s not simply about taking it easy; it involves formalizing and systematizing your trading philosophy. In fact, crystallizing your strategy to the point where it can be implemented by a program is not a shortcut—it’s a disciplined approach.

  • Benefits of strictly following mechanical rules
    With discretion, emotions can cause losses to trigger frustration and wins can lead to complacency. EA, without emotions, can calmly adhere to rules, which may actually support the “effort” and “steadily building up” mindset.

3. The fear that “EA will stop working if the market changes”

• Background of the belief
  Many wonder, “Will automated trading only work under conditions similar to what we’ve seen before?” Indeed, if market conditions change drastically, EA’s edge can be diminished.

• Hints to let go

  • Regular maintenance and updates are essential
    EA isn’t created once and left; it’s normal to review and adjust parameters and logic to match market changes. There is no guarantee you can win forever without doing anything.

  • Addressing market changes with portfolio management
    Running multiple EAs that excel in different market conditions at the same time makes it easier to adapt to regime shifts. Combining with discretionary trading is also effective.

4. The misconception that “mental state management will no longer be necessary”

• Background of the belief
  Some think, “If I rely on automated trading, my mental state doesn’t matter.” In reality, mental management still significantly affects EA operation.

• Hints to let go

  • Even with EA, successive losses can provoke anxiety
    When losses accumulate, it’s natural to question whether this is really okay. Decisions to shift or pause EA trading, even without discretionary actions, involve mental factors.

  • Tips to maintain stability through regular checks and avoiding over-reacting to small wins/losses
    Setting rules such as checking performance only on weekends or returning to validation if drawdown exceeds a certain percentage helps control mental burden and maintain stability.

5. Still, discretion experience is not wasted

• Background of the belief
  Some may feel, “If I delegate to EA, all my discretionary skills and effort so far would be wasted.”

• Hints to let go

  • Discretion experience enhances the quality of the logic
    If you articulate your market intuition and embed it into logic, EA can reproduce that experience around the clock.

  • Use discretion to inform stop lines and filter settings
    If you understand which market conditions are challenging for discretion, it becomes easier to design triggers to stop or restart EA. Your discretionary experience can further improve EA performance.

Today's summary and next time

• When introducing EA, discretion traders often hold beliefs like “I need to see the market with my own eyes, or else I’m uneasy,” or “this is cheating.”

• However, with the right understanding, EA can complement discretion experience and contribute to “loss avoidance” and “peace of mind.”

• Adapting to market changes and mental management are still needed after EA introduction. Understanding that discretion experience and regular verification support a smooth transition helps.

Next time (DAY 29), we will focus on “The Final Steps of Introducing EA — Planning and Verification at Start” and summarize what to prepare specifically and how to start operating when you decide to implement EA. This guide is for those who are interested but don’t know where to start.

Introduction to the EA I sell

If you want to use EA without wasting your discretion skills, please also consider the EA I sell.
https://www.gogojungle.co.jp/users/147322/products

If you’re interested in the overview of the logic, backtest results, and how to combine it with discretion, you may find the optimal form that matches your trading style.

In the next article, we will organize the “final step” of EA introduction, including initial planning and verification process points.
Please click “Read more” to continue learning.