Using Auto-Manual Mix Towards Peace of Mind

Create…

… an asset.

Move on.

Create…

… next asset.

Move on.

Loop to the nth and decide what your magic n is.

Retire.

Ha!

Formula for financial independence in 22 words?

You decide.

How?

By treading the path.

The act of creation is manual.

One can use many tools while putting the asset together manually. That’s absolutely fine.

Let the asset loose.

From this point on, it’s on auto.

It’ll remain on auto, hopefully, till its logical conclusion is reached.

If the asset misbehaves in between, it will attract your attention.

If your attention is attracted beyond your critical mass, you will stop what you’re doing and attend to the asset.

You will either tweak and repair and let it loose once more.

If the asset is beyond repair, you will terminate it, i.e. sell it off, even at a loss. After all, it is misbehaving. You don’t wish to hold something that bothers you.

Peace of mind is the most valuable asset in your portfolio.

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Manual has a Tendency to Enslave

There is something about things by rote.

They create a groove.

We enter the groove on a repeated basis.

Entering becomes a given.

Our system has aligned itself to entering.

Our system gets comfortable.

It wants to stay there.

It wants more.

How does one extract oneself from this vicious cycle?

Firstly, why do we wish to extract ourselves?

We wish to control Manual, and we don’t want to let Manual control us.

If there’s too much of Manual, our day is gone, and we are not able to attend to more important things in life, like family, extra-curricular activities and all the jazz.

How to go about it is a question of awareness and setting limits.

Thus, you find yourself saying that you will engage to this particular level, and no more, and once this level of engagement is reached, you will put the strategy on auto, and disengage, and remain disengaged till the next screening is due.

Easier said than done, sure.

How is one able to stick to this plan?

If the day is busy, with multiple engagements, one forgets about the activity of the morning by afternoon, because the afternoon has brought with itself a whole new set of activities. Stay busy.

Learn to take small losses in stride. That’ll line you up for the big wins. Strategies left on auto till next screening can incur losses and then get stopped out. That’s part of the deal. Have faith in your stop. You have placed it at a strategic location, where it can not be reached so easily. For your stop to be reached, the market will have to go out of its way. If the market is doing that, you don’t wish to be in the trade anyways. You’re stopped out, and that’s good. That saves you from big losses. Have faith in this philosophy.

So, you’re busy, and you have faith in your philosophy.

You engage, disengage and move on.

You don’t look behind.

That’s how you keep Manual from enslaving you.

A Little Bit of Manual is a Good Thing

Sure.

Auto is the motto.

Keep some pivotal stuff on manual, though.

It’ll give you something to do.

Because it’s pivotal stuff, it decides direction, or quantum, or what have you.

Position-sizing is ideally done on auto.

You can write an algorithm for it too.

Yeah.

You can take auto to the nth level and then some.

Keeping position-sizing on manual, though, for example, makes you remain in touch with portfolio expansion or contraction. Central.

In my opinion, setting risk:reward is a trade to trade thing, and depends upon the underlying chart. Hence, being manual here gives more dexterity.

Same goes for setting stop-losses.

Which auto strategy to look at, when, is by default a manual thing. It should be, anyways, in my opinion.

This adds spontaneity to life.

Spontaneity has a certain freshness to it which makes work fun.

Some strategies are better off when not looked at for days.

Manual helps here.

When an auto strategy stops working, one needs to manually fit it to work again.

If the strategy needs dumping, you’ll need to see to this yourself.

Creation of a new strategy – you got it – manual.

The manual stuff keeps you moving, and fit.

The auto stuff just goes on auto, and if that’s all there is for you, you’re going to start getting lazy.

Befriend manual, but don’t become a slave to manual.

A little bit of manual is a good thing.

Auto is our Motto

What are you doing…

…that’s not on auto?

Next question is, why is it not on auto?

On purpose?

Sure, there’s some stuff that you’d like to reserve for manual. That’s absolutely fine. 

Not on purpose?

Meaning you want it to be on auto, but haven’t done so?

Right. 

Why not?

Meaning, why are you not using that one big benefit of the twenty-first century – to your benefit?

Lazy?

Couldn’t care less?

Too complicated?

In a rut?

Whatever. 

Bottomline is, you’re losing out. 

How?

You’re losing out on…

…time…

…growth…

…evolution…

…prosperity…

…sense of fulfilment…

…sense of purpose…

…and what have you.

You can also start figuring out for yourself how you are losing out on these things amongst other stuff. No spoon-feeding here. 

Automation is the minimal requirement of our times. 

Automation requires transcending an activation barrier. 

This is a one-time input, before the concerned process goes on auto. 

This is also the step which makes many lose interest in going auto. 

Well, from nothing comes nothing. 

You will have to put in that time and energy for the one-time input that pushes the process into auto-mode. 

There is no way around it. 

However, each time you’ve gone auto, you’ll get a huge sense of accomplishment. 

You’ll want to recreate that feeling again and again and again. 

You’ll want to put more and more stuff on auto. 

With so much of auto stuff adding to you from the background, your life will become fuller. More enjoyable. More time to pursue whatever you wish to pursue. More time to be…

…you.

Cheers.