Omega's decision is based on our decision algorithm itself.
Yes, but this dependence factors through the strategy that the algorithm produces. Read Eliezer's TDT document(pdf) where he talks about 'action-determined' and 'decision-determined' problems. Whereas CDT only 'wins' at the former, TDT 'wins' at both. Note that in a decision-determined problem, Omega is allowed but a TDT-minimizer is not.
I argue that an EDT agent should integrate his own decision as evidence.
You appear to mean: When an EDT agent hypothesizes "suppose my decision were X" it's subsequently allowed to say "so in this hypothetical I'll actually do Y instead."
But that's not how EDT works - your modification amounts to a totally different algorithm, which you've conveniently named "EDT".
If EDT's decision is to one-box, then Omega's prediction is that EDT one box, and EDT should two-box.
...then Omega's prediction is that EDT will two-box and oops - goodbye prize.
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It can be both. Causation is not exclusionary. I'm suggesting that you are mistaken about the aforementioned handling.
No it can't. If you use a given decision theory, your actions are entirely determined by your preferences and your sensory inputs.