Just as a side discussion I've been thinking about the "no matter ea" some more.
In discussing the extremes of trading, in this thread it's about tackling extremely small profits with high success rates, a lot of truths of trading begin to reveal themselves. In this instance, unless a different stop loss strategy or 100% succes is achieved, the truth revealing itself is that it doesn't matter how many times you win if you lose end up losing more. Duh right?
There's two ways of looking at it though. The first lesson is to not put too much into any one single play. The other is to make sure you have a system that can severely outweigh the losses. Those are both lessons we hear all the time. Why am I bothering to post this then?
I'm posting because of the idea the "no matter ea" presents. Would a random entry into a certain chart give us a 50/50 chance at success? That's all we really need right? Even 30% success can be successful if the losses dont outweigh the wins.
So how successful is random? Stop losses seem to play a huge part in a systems success, both in preventing it and insuring it. Do we just need to find a correct pip target and stop loss? Would a 40 TP with a 20 SL inherently just produce a successful EA? If not, why? Because the stops outweigh the TP instances.
People are constantly coming out with systems that try to make the system more accurateby looking at indicators, S/R, waves, etc.. Has anyone ever tried making a system where it is randomly entered and the only variables to change the success of the system are the stop loss and take profit values?
How often does a system with 40 TP and 20 SL achieve success? Does a trailing stop really protect profits or limit them in something like this where it could go to 38, retrace 15, then run again? Does a system that enters 3 positions with exit strategies at different pip levels really increase pip profits?
How much does something as simple as having RSI values designate what position is opened on the random entry? Using the indicator as a decision to which side to take rather than when to open the trade. I've mentioned that before. But if that gives us 50/50 success rates with a certain SL and TP combination would it not be successful in the long run? Really need to get going on those EA skills. Matt
In discussing the extremes of trading, in this thread it's about tackling extremely small profits with high success rates, a lot of truths of trading begin to reveal themselves. In this instance, unless a different stop loss strategy or 100% succes is achieved, the truth revealing itself is that it doesn't matter how many times you win if you lose end up losing more. Duh right?
There's two ways of looking at it though. The first lesson is to not put too much into any one single play. The other is to make sure you have a system that can severely outweigh the losses. Those are both lessons we hear all the time. Why am I bothering to post this then?
I'm posting because of the idea the "no matter ea" presents. Would a random entry into a certain chart give us a 50/50 chance at success? That's all we really need right? Even 30% success can be successful if the losses dont outweigh the wins.
So how successful is random? Stop losses seem to play a huge part in a systems success, both in preventing it and insuring it. Do we just need to find a correct pip target and stop loss? Would a 40 TP with a 20 SL inherently just produce a successful EA? If not, why? Because the stops outweigh the TP instances.
People are constantly coming out with systems that try to make the system more accurateby looking at indicators, S/R, waves, etc.. Has anyone ever tried making a system where it is randomly entered and the only variables to change the success of the system are the stop loss and take profit values?
How often does a system with 40 TP and 20 SL achieve success? Does a trailing stop really protect profits or limit them in something like this where it could go to 38, retrace 15, then run again? Does a system that enters 3 positions with exit strategies at different pip levels really increase pip profits?
How much does something as simple as having RSI values designate what position is opened on the random entry? Using the indicator as a decision to which side to take rather than when to open the trade. I've mentioned that before. But if that gives us 50/50 success rates with a certain SL and TP combination would it not be successful in the long run? Really need to get going on those EA skills. Matt