The short answer is yes, but where? It has been shown over and over again, both anecdotally and mathematically that having a consistent process to generate trades is the best path to the outcome you are trying to achieve. If you want to make the best chili on your block to warm your neighbors and yourself during the winter cold, you start with a recipe and you work from that core recipe until you get the taste, appearance and texture you were looking for. From that point forward, you repeat the process to get the same results over and over again. The same is true in anything you do when trying to achieve a particular end, including trading.
Lets look at the definition of the word “process”. Process – /prōˌses/ – noun – 1.a series of actions or steps taken in order to achieve a particular end. Now where in a series of steps would “discretion” fit? Discretion – /dəˈskreSH(ə)n/ – noun – 2. the freedom to decide what should be done in a particular situation.
The definitions would seem opposite as if to suggestion that when you implement a process in trading, you have no room to make changes, take liberties or make adjustments to your trade.
This is not true, if you responsibly make discretion something within your process. There are only 2 rules when allowing for discretion within your process:
Rule number 1. be honest and consistent. Don’t make discretion the core of your strategy, i.e. “My process is, I check the direction of the trend then I use discretion to enter and exit my trades. This is not a process, it’s a coin flip.
Rule number 2. research your discretion. For example; if you decide that you will use discretion to choose whether to exit your Nadex binary option prior to expiration, or hold onto it until expiration to maximize your profit, then research a range of durations and conditions which might cause you to exit or hold and use the data to guide your discretion.
Trading does not have to be robotic and rigid, especially with Nadex binary options and spreads. If you control the amount of capital at risk and keep it to a comfortable level, the limited-risk structure of Nadex products can be very forgiving, but trading has to be process-based for any chance of success. You can add discretion, just be responsible about how much and make sure it fits within your process rather than discretion becoming your process.