" Then once you have the basic system, testing is done in different settings for different periods in the market........"
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yb,
nope.
a complete waste of time
the cycles of the game go in and out of phase
all depends on how the " big dogs piss in the tall grass " on a daily basis.
read hurst, ehlers et al.
once you learn to read the market signage offered up in live time you get to win.
the banks reset the game and have a 5 day plan.
they clear the board , blow out the stops and load up the retail pendings for the breakout guys at both ends of the channel box.
then they move the price action out for the next 3 levels of rise / fall.
while you sit there licking your wounds on your latest 25 tick stopped out trade.
" stuffing a digitally coded sack of rules that have been curve fitted up against a chunk of historical price data " and then running it in a live market .......is a death spiral that will suck your equity dry.
get your head wrapped around this........
the forex market news has absolutely nothing to do with the direction of the game.
there is a 5 day plan that starts to execute on sunday nite open and runs for the entire week.
DT and DB setups will trump everything else in forex.......catch these and you get to win.
study this chart until your eyeballs fall out.
i have not marked them all
support and resistance rules this game.
they test and retest the price to the " left side of the hard right edge..."
if you cannot see these setups, you are doomed to fail.......
back to the lion's den to snack on the next breakout trader.
cheers,
s
sun open.gif
This has been downloaded 233 time(s).
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" stuffing a digitally coded sack of rules that have been curve fitted up against a chunk of historical price data " and then running it in a live market .......is a death spiral that will suck your equity dry.
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What I propose is quite different. I'm talking about a mechanical system that takes advantage of the price movement itself. It does not matter whether the movement is up or down, but it is important that the market is moving. My strategy specifically relies on the eventuality of market pullbacks and combines price action indicator with custom position sizing. level of aggression with position is fully customizable, and it is set to fully take advantage of compounding settings for maximum unattended profit runs. You can work out very close approximations on spreadsheet to know exactly how much your account can handle (very close = 99%. it cannot be exact with my spreadsheet only because in live trading you experience slippage, requotes, etc. With my strategy however, these things actually work out for the better 9/10 times
Backtesting is only good for verifying that the code does what you are telling it to do, and is best done with historical tick data. Walk-forward testing is much better, especially live forward testing is my preferred approach. It wasn't uncommon for me in the early days to have 30 or so demos running on vps, testing different settings. I had a very basic form of EA, but the fundamentals of cost averaging were there.
I am not suggesting any type of mysticism. This is why understanding the basics of how the system works is so important. Just like you understand the basics of how your car works. A systems approach encourages accountability and confirms objectivity of your entries and exits. Then you can focus more in optimal inputs.
I disagree. Wait. That didn't sound right. I mean, EA's are programmed with what's between the ears, so-to-speak. It's the same thinker that selects or designs an EA's...or trades without a filter between his perceptions and his interpretations. I heard that cruise ships are programmed to follow a designated path, and will sound alerts if the ship strays from that path. Recently, a captain of a Carnival Cruise ship thought that his brain was better than the designated, programmed path. His manual override didn't work out so well.
the amountof leverage people sue in fx trading is ridiculous....how about no leverage?
1,000:1 MAN play poker would be more fun!
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Using leverage and how much you invest into a strategy or system is directly related and I feel it is very important. Some say 1:500 or 1:1000 is simply gambling. I do not agree completely.
