DislikedWe have been watching interest rate news closely since the dawn of 60x90 EA, just wondering if the interest rate news could be as important for newer EA like 180x100 and 40MA BB 200x200 as the trading range has increase significantly. Any thought/comment on this?Ignored
One of the things I did was go over my big losing trades last year. I saw one contributing factor almost every time. Interest rate change. I take those trades out and I would have had a great year. So for me I have learned my lesson:
1. dont trade them
2. If you do and they change, just get out and take the loss.
To me my EAs will keep knocking down profits and the 15 or so days out of the year I dont trade are worth my account sanity.
So in conclusion, The 180x100 and 200x200 are much better designed to ride out a rough patch. Dont know if they can take a major interest rate change but probably can handle small changes. The other part of interest rate change and the guys in the aud/nzd thread know about this. The rate change news may not move the market enough to beat the EA but auxillary news that comes out hours after can kill you. So if banks and/or the govt change rates and then some big trader (Buffet), bank board, Bernanke, Trichet, bond rating company, ETC. comes on two hours later and open their mouths, then some real damage can be done. Then all of a sudden weeks of profit can be gone in a few minutes of time. I have experienced this too many times to want to go through it again. One of the major reasons I only do 2-3 levels is they may damage my account at some point but I am protecting my principal against a wipeout.