Mechanical trading
Trading a fixed rule set where every decision is defined in advance.
Full explanation
In a mechanical approach the rules decide everything: which conditions qualify, where the stop goes, how big the position is, and when to exit. Two traders following the same mechanical system on the same chart should take the same trades.
The strength is consistency and testability. Because nothing is left to judgement, results can be backtested and reviewed honestly.
The weakness is rigidity. A mechanical system built for trending markets will keep firing in a range until you turn it off or add a filter.
Why traders watch it
Mechanical rules remove the moments where emotion normally does the damage — hesitation, chasing and revenge trading.
Trading considerations
- Test the rules before trusting them with real money.
- Add a market-condition filter rather than overriding the system by hand.
- If you override it more than occasionally, you are trading a hybrid — write that down instead.
Educational guidance only — never a trading signal or recommendation.