Still setting up the trading desk. But here's what I see with the ea.
It performs fantastic in sideways markets.
When there is trending the buys need to be buys and the sells need to be sells.
The inverse is what is good in sideways markets.
Big up and big down.
But trending, killed.
So it's the same bugaboo we ran up against with our Dragon ea. how the ea will know when the market is trending and when it is stalled.
Moving averages are too slow for this. They can confirm trend already in progress, lots of time they confirm when it's almost over an an ea will buy a top or sell a bottom.
Just from common sense we know when a major news or data release takes place it's likely trending will start just before and just after.
But how for the ea to know?
Like I knew today would not be good day for the inverse. Fed speak yesterday and surprise employment data from US. I left it up and running anyway, and sure enough the inverse took a loss and looks like it is going to take another loss for the 1 hour after NY open trade. It's on the demo.
If it had been set for forward trade and not inverse it would be doing great.
Trending or not trending, that is the question. It seems like that is always the question. Either market can be traded but how to know when one begins and the other ends.
That was what I wanted to see if volume would tell.
Traders have always looked for breakout of a range on high volume to try to catch the start of a trend. And recognize pullbacks on low volume as a sign of a retracement.
It performs fantastic in sideways markets.
When there is trending the buys need to be buys and the sells need to be sells.
The inverse is what is good in sideways markets.
Big up and big down.
But trending, killed.
So it's the same bugaboo we ran up against with our Dragon ea. how the ea will know when the market is trending and when it is stalled.
Moving averages are too slow for this. They can confirm trend already in progress, lots of time they confirm when it's almost over an an ea will buy a top or sell a bottom.
Just from common sense we know when a major news or data release takes place it's likely trending will start just before and just after.
But how for the ea to know?
Like I knew today would not be good day for the inverse. Fed speak yesterday and surprise employment data from US. I left it up and running anyway, and sure enough the inverse took a loss and looks like it is going to take another loss for the 1 hour after NY open trade. It's on the demo.
If it had been set for forward trade and not inverse it would be doing great.
Trending or not trending, that is the question. It seems like that is always the question. Either market can be traded but how to know when one begins and the other ends.
That was what I wanted to see if volume would tell.
Traders have always looked for breakout of a range on high volume to try to catch the start of a trend. And recognize pullbacks on low volume as a sign of a retracement.