The EA continues to work (or not work) for the same reason your car engine continues to work (or not work). If you run out of gas, it's not the engine's fault, just like if you run out of margin, it is not the market's fault. It is not uncommon for people to have full awareness of some kind of truth and simply choose not to act on it. But that is usually fear taking advantage of our ignorance, and then perpetuates the fear and the ignorance. So we continue to make assumptions that the market somehow changes. Changes into what? The underlying market fundamentally stays the same. There are buyers and there are sellers and each come together at an agreed price. That price can either be higher than, lower than, or equal to the previous price. Mechanically, a trading strategy only needs the fundamentals in order to operate "successfully". Everything else is just opinion or a point of view, and is irrelevant to market price action. If someone was so adamant about their point of view, why not take action, place a trade (manually or automatically), and see what happens? In fact, more volume is better for the entire trading community. You never worry about the air running out of oxygen despite all of creation that depends on that oxygen, or the ocean running out of water despite how many mammals use it. Why worry about if the forex market will run out of money? Many conspiracy theorists love to boast about how one day the dollar will collapse. Fiat currency is a function of want; nature already provides you with everything you need. As long as humans have wants, fiat currency [in one form or another] is here to stay. I don't see humans giving up their wants anytime soon. The market truth is already there, just waiting for you to trade. I always recommend removing what is not true, which is all you can do at the level of the mind. Practicing "The Four Agreements" and eliminating "The Voice of Knowledge" [Don Miguel Ruiz] is my favorite tools for doing this.
I'm not telling stories about whole market running out of money. Don't forget that any profit one could earn is somebody else's mistake. So we have to think only about some small portion of the market, the loosers who trade our pattern in reverse way. No loosers - no profit. Do you know that every trading strategy have maximum capacity and that it can be calculated exactly? If you throw into some strategy more money than it can digest it will result in lower return on investment.
this is technically correct. The assumption here is that every market participant plays to "win". This sounds strange, but bear with me: In futures market, a farmer may be afraid the price of corn may fall lower than the amount of profits he is expected to make from future sales. So he can go short x contracts of corn to lock in profits. If corn prices rise, he makes money off of selling corn, and loses off of the futures contract If prices fall, he makes money off of futures contract, and loses on the sales price of his corn crop. forex and other 'cash settled' financial products work the same way. There are hedgers that are not always playing for profit, but to hedge risk. There are many things a larger corporation, banks, or countries can hedge from: inflation, taxes, exchange rates, interest rates across different banks, etc. I'm sure those in the banking industry could come up with better examples. The point is to demonstrate that there are plenty of people speculating / hedging for different reasons. Our goal as a price speculator is to profit purely off of the price movement. We're not really looking to hedge against any other "tangible" product. Sure. This is why I developed a spreadsheet so that you can see exactly how the cost averaging would work: required margin and total capital required, how many pips are needed to break even, how much distance (range) you can survive before blowout, etc. And the grid is fully adjustable, customizing the lot sizes, range of grid, etc so you can be ultra conservative or a martingale lover if you wish. This is why poker can appear tricky to newcomers, as many newbies assume everyone is at the table to win. Despite the best hands pre-flop or flop, the showdown is what counts and you will lose sometimes. So one would have to have enough money available to "survive" some losses until you can double up successfully.
When I'm telling about "loosers" I mean everybody who buy when we sell and v.v. It doesn't matter what do they have in mind while buying. They bought -> price goes down -> they have loss and we have profit. Hedgers or traders, its all the same.
Right. My point is that because different participants are in the market for different reasons, there will always be someone taking the other side of the trade.
a digitally coded EA will never be able to see and react to the subtle hints given for live market direction. lets put real money at risk using the latest $100.00 wonder hyped up on the net........duh. there is no cheap / free ride in trading and you have to learn to read the road maps supplied. it takes many years to get in sync. with the game, not have an opinion on direction and give in to the constant ebb and flow as it unfolds. if you cannot do the time, then walk away........ you are trading against the best there is and we will take all of your hard earned $. just the way it is ...... " Trend following is an exercise in observing and responding to the ever-present moment of now...." ed seykota once you get your head wrapped around all of the above, you may have a chance. cheers, s
One of the main problems I have with this type of statement is that it implies that there is some "hidden truth" in the market. As if the truth is not right in front of us. Why is time a factor? If one obverves the market without any outside opinion (including our own opinions), you can instantly access this truth yourself. And that is the biggest challenges, because we seek recognition and/or validation from others instead of trusting what is right in front of us.
.............................................................. that is why most fail....... 3rd party validation trading rooms / groups trade calling emails from a service. video talking heads and the political suits. all crap, none of it works........ to truly trade the game you have to work in a vacuum . the best EA avail. is the one between your ears. s
the " hidden truth " in the market is this......... the guys who move the game know how 98% of retail trades. where you put your stops. where all the retail pendings are clustered . your margin your trade your tp if they are sitting on a server, you have uncovered your butt. the admin. screen will show the entire retail playbook. like shooting fish in a barrel. s
this is the other side of your retail trade........ you think your order is being matched up with some other guy in jersey....? think again..... s