From Rules to Code: Turning Set-ups into Scripts
Every trader says they have “rules.”
But unless those rules are clear enough to be coded—and executed exactly as written—they aren’t rules at all. They’re suggestions.
And suggestions are where fear, greed, and boredom slip in to destroy your performance.
Why “Coding It” Is the Ultimate Test of a Strategy
When you try to turn your trading setup into code, you’re forced to answer the questions most traders avoid:
- Exactly what triggers an entry?
- What price level or condition gets you out?
- How do you size the position?
- How do you handle multiple signals?
In human terms, we can fudge these: “I’ll buy if it looks strong,” “I’ll exit if it feels weak.”
In code, ambiguity doesn’t exist. If you can’t define it, you can’t program it.
This process reveals whether you actually have a system or just a loose set of habits.
Translating Trading Rules into IF/THEN Logic
At its core, trading automation is a series of IF/THEN statements:
- IF 50-period moving average crosses above the 200-period moving average THEN enter long.
- IF RSI(14) > 70 THEN close position.
It sounds simple, but real-world coding forces you to handle details:
- What happens if two signals fire at once?
- Do you allow multiple positions, or only one at a time?
- How do you handle gaps in data?
Without clear, consistent rules, your code will fail—or worse, run inconsistently and erode your trust in the system.
Choosing Your Language: Pine vs. Python
For TradingView strategies and indicators, Pine Script is the go-to. It’s designed for traders, with built-in functions for chart analysis.
Example (simple moving average crossover in Pine Script):
pineCopyEdit//@version=5
strategy("SMA Crossover", overlay=true)
shortMA = ta.sma(close, 50)
longMA = ta.sma(close, 200)
if ta.crossover(shortMA, longMA)
strategy.entry("Long", strategy.long)
if ta.crossunder(shortMA, longMA)
strategy.close("Long")
For broker integrations, portfolio-level risk management, or multi-strategy setups, Python is more versatile. It connects to APIs, databases, and execution engines for brokers like Interactive Brokers.
Testing Your Logic with Unit Tests
Coders know: bugs hide in the smallest details.
That’s why professional developers write unit tests—small, automated checks that confirm each part of the code works as intended.
In trading:
- Test that your indicator signals when it should (and only when it should).
- Test that your stop-loss and take-profit functions trigger exactly at the intended price levels.
- Test that your position sizing matches your rules.
It’s much easier to fix logic in a test environment than to explain to yourself why the bot just blew up a week’s gains in one trade.
The Payoff: 100% Discipline
Once your rules are in code, they don’t bend to mood swings or late-night “just one more trade” impulses.
They execute your plan exactly, every time.
That’s the point of The Bored Trader Manifesto: replacing emotion and inconsistency with logic and automation.
Where to Go Next
If you missed the earlier parts in this series, catch up here:
- Part 1: Why Humans Are Terrible Traders
- Part 2: Fear, Dopamine & Drawdowns
- Part 3: Edge or Illusion? The Anatomy of a Back-test
When your rules are ready for automation, explore our tools for executing them flawlessly: TradingWhale.io
#AlgoTrading #AutomatedTrading #TradingAutomation #PineScript #PythonTrading #AlgoTrader #TradingView #InteractiveBrokers #AutomatedTradingCoding #BoringIsTheNewAlpha
