Discipline – Discipline is the systematic adherence to a trading plan and risk-management rules. A disciplined trader (or bot) follows predefined entry/exit criteria and risk limits (e.g. strict StopLoss levels) without succumbing to emotions. For example, a robot can encode discipline by using a RiskTolerance parameter to never exceed a set drawdown, and by enforcing stop-loss orders when triggered. Trading discipline is described as “a structured approach to executing trades based on predefined rules while managing emotions effectively”. It ensures that fear or greed do not lead to ad-hoc rule-breaking. Disciplined trading results in consistent execution (e.g. always exiting when StopLoss or TrailingDrawdown conditions are met), which is crucial for long-term performance.

Back to Robots Glossary Index