Precision trading

Is there such a thing as precision trading?

The answer is yes, but not in a way that is as obvious as one might think.

Perfectionism is paralysis, a well-defined principle. And trading is messy, in averages and sample sizes.

So, how can precision trading exist?

The answer is that the traders' actions need to be precise.

One shouldn't be loose with one's interpretation, and this not from the fact that markets need room for interpretation but from the view that the degree of precision one uses to describe markets is in a direct relationship with how accurate data is that can be extracted from present data to data samples taken in the past.

This means the more precise one's actions to capture market behavior, the more detailed improvements necessary to improve one's performance can be.

Let us illustrate:

The number of ways different people draw trendlines into charts is vast.

All the way to interpret price movement in two different directions

With a rule implementation stating the definition of a trendline as higher highs and higher lows for an uptrend, you will find that these vastly different results between different traders drawing trendlines still exist.

Adding a rule stating that a trendline needs to touch price at least three times, with more precision, we will find already a more homogenous picture in an average sample size of chart interpretations among a group of traders.

Adding another degree of precision, like defining a trendline to be either connecting candle wicks or candle bodies, we will finally arrive at the degree of "clarity" desired.

Desired why?

It is vital to be more precise to get better results. The tighter you squeeze the market with rules, the less you can catch its essence. Still, the more precise you are in scrutinizing your actions, the quicker you can leap forward in your exact measurements of your actions and, with the resulting data, make improvements necessary for your process sequences for execution and/or system development.