Disliked{quote} If its true that random entries could work just as well, it'd be a simple matter to test via EA back testing. Just build one with a totally random entry with 5 SL and 5 TP. Of course due to spreads the account has a negative expectation, but we'd purely be focused on the win/loss rate. The "wins" in this EA would be entries with SL moved to break even.If the entry has a tradeable edge, then it should have a better % than the random EA, without optimization, and across multiple tests with different date ranges.Ignored
Thank you for discussion. I did an EA which did something similar and got very interesting results. Curve was amazing. Problem was that inclination was negative, but very smooth. On the other hand I use EA which have random entries but sophisticated (actually not so much sophisticated) exit. It work on lose small, win big principle. Using random entry and very tight SL you can be almost sure you hit SL often. More than 50%.
It might appear that chance is 50% minus some spread. This is not so simple, unfortunately. Situation changes drastically when there is enough room to breathe for position but it doesn't make sense using this method.
Random entry method trades in every situation which is not very good for system itself. Trader can pick tops and bottoms quite easily with couple of years of training. There is very good thread here on FF (unfortunately I don't remember its name) where institutional trader was explaining how big guys place orders. Goal was to place an order with tight SL and taking profit on first S/R level. This is what I did for very long time. I've never thought of letting it grow so much as it worked very well but then Fez came and offered me eye-opener.
I'm pretty sure you can find very precise entry method with very low risk. To make it perfectly took around 2months of training in forextestester and another 2-3 months on real account.
The point is you can lock many trades on BE. You'll collect loosers and BEs and your winners will be still virtual as profit will be still open. It is probably reason why so many of traders are afraid of this method.
I need usually 2 attempts to get into position. I find entry on H1 and I need to shot first bullet to find where is the balance and second time I'm able to shot accurately. This is not possible to do with EA. Your gut is much better than some code...
Lose small, win BIG