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Re: Disadvantages to discretionary trading
Ok. I see what you mean. Basically you're using the aid of the system in identifying your entry. My problem was identifying the structure different from my system. Basically I used it as an entry but ending up trying to exit with a different indicator.
If you use it this way, it's fine. You'll have higher percentage of winners with smaller profits, it's ok. So long as you tighten up your stops for the losers, but that will distort your results from the original system. When these failed reversals start kicking in more often, the small winners may not cover the larger losses. I don't think there's anything wrong in system aiding in identifying your entry setup.
I have an excel keeping results on the different profit target distances (ie. 2, 4, 6pts for er2) to determine if the optimal exit point. (I know I can do this on TS but I use all discretionary setups myself without auto trades.
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