Kosta Ouzas explains how past wins make traders overconfident and past losses make them hesitant, warping their judgment on the next trade. Algorithmic systems avoid this because they start each trade with a clean slate, judging only on current market conditions.
Human traders carry emotional baggage from trade to trade. A big win can lead to overconfidence. A big loss can lead to hesitation. Both distort judgment. Our algorithm starts every trade with a clean slate. No bias from the last result. No subconscious scorekeeping. No, I need to make it back. Thinking this neutrality is a huge advantage. It means that every trade is judged solely on the current conditions, not on the ghost of the last one. Emotional debt is subtle. Most traders don't even know they're carrying it until it costs them. By wiping it clean every time, we ensure the past doesn't poison the present.
