The EA method, you say? Yep, the EA aka Experts Advisers method.
Before, I go on to propose the "Method" , I would like to add my thanks to two people from here on Forex factory:
1. Ronald Raygun:
He is the man who gave me this idea. He might balk when he reads this, so, let me explain. His profile has one line which inspired me:
"I trade with 37 different systems, 34 of which use an EA, and 32 of those EAs can be found here on ForexFactory. "
Why and how? Coming up in the post.
2. SamuraiPower:
On forexfactory we have an EA, works great but has serious DD issues. Name is "Firebird". This guy worked out a way to generate huge number of pips by tweaking the use of the EA.
We all love free money. Who doesn't ? And EA's seem to be the best way to achieve it.
Let the EA run and then just go about your having fun, the EA pulls up pips after pips and piles them up. We become a millionaire and live happily ever after.
Does it go this way? "NO".
Every EA has a different issues. From DD to entries, problems galore.
I have seen many people, trying to bend systems/entries/exists to make the EA just a tip better. They feel, if the system was working great manually, it will work great on EA too. They tend to forget one factor, the human factor, which makes us not to take a trade even if the market has lined up properly in accordance to our systems.
So, what is this thread all about?
It is about identifying potential EA/Systems and understanding the market conditions to "when and which" they work.
Some might work in trending markets, some in ranging, some news based etc.
So, we will be properly analyzing the market and not the entries/exits/input values of a particular EA.
(Herein, Ronald Raygun comes in as an inspiration. This guy has 32 EA's which as he says turns off and on in accordance to the market. That is the real inspiration)
How to go about this?
We will be following a procedure.
Step 1:
Identify a potential EA/System. Nominations from the members are welcome. At one point of time, we would be testing out a max of 5 EAs.
Step 2:
A comprehensive backtest of atleast two years. This will give us all the good/bad days for an EA. The points in our charts to be analyzed.
Step 3:
Proposing the good/bad conditions for an EA based on the backtest.
Step 4:
Forward testing the conditions.
Secret Step:
If all fails, begging Ronald to help us out. Just kidding.
So, everyone round up your favourite EA/System so that we can start testing.
PS: This a collective intiative so dont just hand over your EA to me and expect to me to work magic.
Sorry, if you are having trouble understanding my english, well I am not good writer.
Before, I go on to propose the "Method" , I would like to add my thanks to two people from here on Forex factory:
1. Ronald Raygun:
He is the man who gave me this idea. He might balk when he reads this, so, let me explain. His profile has one line which inspired me:
"I trade with 37 different systems, 34 of which use an EA, and 32 of those EAs can be found here on ForexFactory. "
Why and how? Coming up in the post.
2. SamuraiPower:
On forexfactory we have an EA, works great but has serious DD issues. Name is "Firebird". This guy worked out a way to generate huge number of pips by tweaking the use of the EA.
We all love free money. Who doesn't ? And EA's seem to be the best way to achieve it.
Let the EA run and then just go about your having fun, the EA pulls up pips after pips and piles them up. We become a millionaire and live happily ever after.
Does it go this way? "NO".
Every EA has a different issues. From DD to entries, problems galore.
I have seen many people, trying to bend systems/entries/exists to make the EA just a tip better. They feel, if the system was working great manually, it will work great on EA too. They tend to forget one factor, the human factor, which makes us not to take a trade even if the market has lined up properly in accordance to our systems.
So, what is this thread all about?
It is about identifying potential EA/Systems and understanding the market conditions to "when and which" they work.
Some might work in trending markets, some in ranging, some news based etc.
So, we will be properly analyzing the market and not the entries/exits/input values of a particular EA.
(Herein, Ronald Raygun comes in as an inspiration. This guy has 32 EA's which as he says turns off and on in accordance to the market. That is the real inspiration)
How to go about this?
We will be following a procedure.
Step 1:
Identify a potential EA/System. Nominations from the members are welcome. At one point of time, we would be testing out a max of 5 EAs.
Step 2:
A comprehensive backtest of atleast two years. This will give us all the good/bad days for an EA. The points in our charts to be analyzed.
Step 3:
Proposing the good/bad conditions for an EA based on the backtest.
Step 4:
Forward testing the conditions.
Secret Step:
If all fails, begging Ronald to help us out. Just kidding.
So, everyone round up your favourite EA/System so that we can start testing.
PS: This a collective intiative so dont just hand over your EA to me and expect to me to work magic.
Sorry, if you are having trouble understanding my english, well I am not good writer.