So you say the main issue is recursion. and the dependence of dependent variables. The problem from your perspective is the bifurcation of the original discretionary rule... Have I got it? thanks SMJ
Quoting JaxPacificDislikedI think I get what you're asking, but after much trial and error I don't think it's possible without a more complex neural network or something that can think through and compare different sets of information in realtime and I'll try to explain my experiences. Tell me if this sounds familiar when you started to try and come up with a few discretionary rules:
So the short answer I think would be no. Discretion isn't something that is simple and is therefore hard to narrow down. The most common problem you will run into is that a discretionary filter will most often override a larger rule that your system is dependent on, and therefore you would need a dicretionary rule to govern the discretionary rule and the complication becomes obvious and never ending. You will also miss some "normal" trades that were filtered out from a discretionary, rule and catch others because of the same rule. So you'll either loose some trades because of a non-discretionary loose rules system but still be profitable, or use a discretionary filter and depending on how many normal trades it ends up filtering out, might not end up being profitable. So just because it's hard to do, and I have not been successful at doing it yet, does not mean it is not possible. And yes I will continue my persuit. BUT if you're looking for some friendly advise here it is: If you have more than three discretionary rules in addition to your original system..stop! because you'll end up with ten more later and have wasted a lot of time Also, don't get too excited about a set of rules until they work on more than one pair, you'll find often times they won't which is frustrating after you've put in the time. Only form your discretionary rules around constants. EXAMPLE: when basing a rule off of price action it doesn't make sense to say that 10 pips before "X" happens is a filter. The strength of 10 pips on one pair's volatility could be 25 pips on another. However, basing something off of a fraction of that pair's daily range for instance, would be a constant for that particular pair.
I know this probably sounds like ramblings from a forex kook (newbie in surf lingo) but I tried to keep things vague while trying to address the problem I think you're trying to get at.
If you want to discuss specifics get ahold of me.
Jax-Ignored