A profitable trader made 35 more pips last week , after a string of 7 losers ....................and this extra profit is achieved regularly after a string of losses.Instead of trading one instrument and risking 2 % on one instrument , the risk is spread over 4 instruments at 0.5 % each.This is sound risk management.
What profitable trader are you talking about? BTW, most liquid instruments are so correlated nowadays that trading them all is borderline useless.
This is a gambling strategy with EA's because no one knows when it will stop working. The strategy makes sense, but only because of the lack of control in EA - you don't fully know why they fail. I know 1st hand because I did the exact same thing in gambling using EA's before I learned the "how to" from a pro. But when I started trading I went though a period of using EA's and then when I stopped using them I monitored performance for about 2 years via a broker who ran a top 20 list and rotated them as they dropped off. Good EA developers rented them to him for a cut but it was always the same old story that they worked and didn't work so you needed a basket of them to try and make it safer. It is still enormously vulnerable to a sudden change in market conditions. Proper trading is a world apart from that and the stats you use from EA's direct your belief system in a way that is not conducive to trading. It fools you into thinking you know what is happening and why. I got the tee shirt on this. Now If I did 7 losses in a row I'd be looking for the nearest window. Increasing stakes after a string of losses is guaranteed to fail in time and you'll get hit, even limiting it to 4%. Here's the smart way: get control and increase stakes because of profits, not because of losses. Never increase stakes because of losses. If you are making losses something is wrong and needs the brakes applied immediately. And I agree with you that TA works and nothing always works (I've been trying to get you to say that all along)... but if TA works it isn't junk then... correct? So are you up for the deal on principle (that we agree terms and) that I show you consistent control and profits? I get you your 100pips min pw on 50/50 split and you start up a thread that TA works if a trader knows how to use it? That will shut a lot of naysayers up and we might get ET back to discussing trading that works.
Even outside of RTH, when folks in that time zone are asleep, their home market reacts instantly to what is happening on the other side of the world. We all trade each others markets now.
Yup, we know it perfectly, that during European session ES follows European stocks, vice versa as US session kicks in etc. with most other markets following their correlations typical for global 24 hour trading of our times. Somehow Oil and FX Pro doesn't know that simple fact, maybe cause it's not so in the dream world.
Aren't high frequency traders utilizing technical analysis? Isn't what they do considered TA? Aren't they successful??
Exactly. Good method with an edge is perfectly compounded, which is effectively icreasing size after winning, not after losing. And if there's no edge, adding size after losses will only make the drama worse eventually.
Well, I don't know about the rest of you, but I'm fairly convinced that oilfxpro can't make money using anything that may pass for TA by definition.
Different instruments have different volatility , but people assume they are the same ....they are not.It is dumb to put all eggs in one basket. Each instrument produces different equity curve daily , and there is no similarity in distribution of profits and losses.