How do you select relevant values from an infinite array which determine actions such as setting stops and taking support & resistance area breaks when they change all the time? If you do not use an infinite array, you may end up with a predefined sequence like 1-100. But what happens when there are 101 values between the first support point and the support break?
I’ve programmed in PHP using OOP, so I know a good portion of abstracting instructions. Programming is about describing objects or scenarios. The intellectually thrilling part is putting your perception into very specific workflows. In recognizing trend patterns, we would need to describe the right thing. Instead of taking a sequence of variables, I suggest to describe what a valid swing is. The high/low would then be determined by this swing. Hence you wouldn’t need to cherry pick integer arrays (or an X number of candles) because this would be precisely known once the system knows what a swing is. I would define a swing in an uptrend as follows: a minor reaction that does not penetrate a previous important low, followed by a reversal recovery which breaks and stabilizes at a higher high. In the ES, a swing is roughly 30 points.
I envision a system that grasps the core of market movements, such as an autopilot that understands the law of physics in aviation and makes automated decisions upon it (from take-off to landing). Standardization helped to decrease human errors in commercial aviation, and I do hope that we get some standards in the financial industry, too. Point me to a quasi-standard system if you know of one. My utmost interest in trading is first of all to understand the ongoing dynamics by philosophizing about the battle between bulls and bears. If we could define its basic principles with lines of code, we would be one significant step further in the standardization process.
The decisions an experienced and well-trained trader and the automated system would do should match most of the time. Very similar to how a trained pilot will approve the decisions made by its autopilot.
A trader can only be an educated individual who fully understands the dynamics in price action, nothing less. I compare the retail trader with an amateur pilot, with a significant difference that traders generally receive no education or mentorship. This free-at–will and try-my-luck-in-stock-market mindset needs to be changed.
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