The four moves every automated system must survive
If one of these steps is weak, the system is still discretionary even if it looks automated on the surface.
- Do not automate vague pattern recognition you cannot define.
- Do not confuse historical correlation with a durable edge.
- Do not move forward until the rules are testable and reviewable.
Define the market behavior
State what condition you think exists: trend, mean reversion, breakout, volatility compression, or event response.
Express it as a rule
Convert the idea into entries, exits, invalidation logic, and position sizing that the creator can enforce without improvisation.
Test the claim
Run historical validation with realistic capital assumptions, symbols, and bad periods instead of trusting the first attractive equity curve.
Supervise the live process
Automation reduces repetitive decisions, but the operator still owns monitoring, escalation, and shutdown criteria.