Forex trading is difficult!!!

Discussion in 'Forex' started by tonyzhou, Nov 11, 2006.

  1. Well thanks for the slap in the face and thanks for taking a look.. I guess I am not such a good writer after all.

    I know you find this hard to believe...backtesting is not the end all...its just not that easy.

    Michael B.

     
    #21     Nov 11, 2006
  2. As I see the daily moving average does not work very well, (I really think trend indicator is very good for daily system), I looked into 1 hour chart.

    The 1 hour chart's problem is sometimes, the heavy up/down will happen in 1 minute, say 60-80 pips in 1 minutes.

    ok, now the trend indicator cannot work in 1 hour chart. So i guess we cannot detect those sudden up/down to profit. And the only way to prevent it is to use stop loss/trailing stop.

    However, we can guess after those sudden up/down, there will be probably a correction there.

    So I use simple RSI, and a combination of stop loss and take profit.

    In 1 and half year, profit 4082 pips, relative drawdown 280 pips.

    OK, for 20% fund loss tolerance, it requires $1400 in mini account, and profit is $2700 a year, so the annual return is 190%

    But i am not feel good for 70% loss trade and 30% win trade.
     
    #22     Nov 11, 2006
  3. Also the graph.

    Any comment on the simple RSI?
     
    #23     Nov 11, 2006
  4. :). English is not my first language. Frankly speaking, reading an English book is not so difficult to me. But reading forum is more difficult to me.

     
    #24     Nov 11, 2006
  5. Are you Japanese? just curious...


     
    #25     Nov 11, 2006
  6. No. :)

     
    #26     Nov 11, 2006
  7. traderob

    traderob

    The only success I have is with Forex. Lost big money in futures and small in stocks.
    I like reading these threads where it seems almost no one has a clue, it makes me think forex will continue to be the market to study.
     
    #27     Nov 11, 2006
  8. Well if he is not Japanese then what nationality might he be ...:)

     
    #28     Nov 11, 2006
  9. ElectricSavant, do you know IB is a dealing desk or non dealing desk broker?
     
    #29     Nov 11, 2006
  10. From what I understand Idealpro is what they use. I think there are Marketmakers within Idealpro and I believe Idealpro was created by IB.

    I cannot answer you directly, but I believe the ECN model might be the comparative model.

    I will say that any dealer who accepts orders from their clients with minis (10k units) or anything under lots (100k units) would have to collect enough orders to trade lot size...directly with the Banks. IB allows single unit increments over a certain amount causing in Forex what would be comparative to odd lots...I am not familiar with the arrangement that IB has with the various Banks and you will need to ask them. They are active in ET and frequent it often and they are a sponsor here.

    Michael B.


     
    #30     Nov 11, 2006