DislikedThen it's up to us to design the ea complex enough so that it can handle everything the market spits out at us.Ignored
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DislikedThe thing is each moment in market is unique and you can not compare it with same situation in the past. Sometimes may react the same as before but not alwaysIgnored
Dislikedthat is why you need to find out which patterns are random and which are recurring with a certain statistical likelihood.
Once you identified those patterns it is rather easy to exploit them using an ea.
I think the difference in our perspectives is that you BELIEVE that the market is unique in each moment, while I KNOW through my statistical data that this is not the case.Ignored
DislikedIMHO it has been said that only 30% of forex traders are making money.Ignored
DislikedAs long as you do not expect all the patterns you find by your system, will not act as you predict and all of your positions with your EA have stop loss not more than 5% of the account and it is profitable, it's OK for me
but I never saw such an EA. may be you can helpIgnored
DislikedI think most guys are just not researching inefficiencies well enough. Cause most patterns are really just random occurences that sometimes have better odds of occuring and sometimes not. If they occured frequently in the near past, then they will become popular again. But by no means are they actual inefficiencies. Even random occurences also have sometimes trends.Ignored
DislikedNormally any rule you have can be coded, you just have to think how your rules can be formulated in programming language. (And yes, discretion can be coded as well, cause discretion are essentially rules that you didn't formulate yet.)Ignored
DislikedYes, I believe you're correct. Real inefficiencies must be robust enough to stand the test of time: several hundred trades and many years of changing markets. The best edges come from inefficiencies and patterns that are caused by deep-rooted, recurring market dynamics. A couple of possible examples: (1) macroeconomics cause exploitable trends on longer timeframes (there is generally always one currency that's weak or strong for a sufficiently prolonged period to create a decent move), and (2) pairing the strongest currency/ies against the weakest...Ignored
DislikedThis is very true...but most do not understand this! If you can quantify it, you can build it! The problem is that most can't figure out how to quantify their discretion. And of the ones that can, very few know how to code it properly.
However, I never understood the popular opinion that edges in the forex must be related to some inefficiency of the market. To me, the "secret" is identifying the EFFICIENCIES of the the forex market - the things that continue to happen over and over again.
Sure the forex market if chaotic, but it is still extremely...Ignored