OK, for the last few days I have debated with myself about whether or not to run a journal for this test mainly because I doubt it will provide much if any benefit to members of this forum. This is mainly because I will not be posting the EA or much about the trading system. About the only benefit I can see is that if successful it would provide hope for those who are struggling. So with that in mind I decided to start the journal.
I was told early in my investment career that the best strategy is to do exactly opposite of what the masses are doing. I took this concept and after sifting through FF posts for the last few years there are several "truths" that people push as gospel that I have decided to do just the opposite of to prove the opposite of the masses concept.
1. "It is impossible to make money with an EA." So this will be an EA trading.
2. "You must trade longer time frames for success." So this will trade on the 5 min chart.
3. "You need multiple indicators on multiple time frames to line up to make a trade." OK, so this EA will run only on the 5 min using just 1 indicator.
4. "You should have a risk reward ratio greater than 1:1 before taking a trade." Sigh...... this would imply you know exactly what the market is going to do, ok, some are good at prognosticating where price is going. But it really isn't necessary. Technically, the way my EA is set up, this method has about a 4:1 risk to reward ratio initially. In reality it won't ever reach that level unless there is a catastrophic failure of my computer in which I cannot get back online to restart the EA. Not likely to happen.
5. "The only way to trade is....E.W. VSA, trend lines, stochastics, etc etc etc." While I am a firm believer that every trader needs to find the method that best suits their trading style, I also believe that we as humans spend a huge amount of time taking something simple and over complicating it. So, the EA trades only with a simple moving average. Just one. Not a moving average cross, but just candles closing over a simple moving average.
6. "Every great system has some level of discretionary trading." So, it's an EA, it either is or it isn't, period. It cannot look at a situation and go... "Yeah, that's pretty close so let's go ahead and make a trade." If it doesn't fit the rules, it will not make the trade.
7. "You need at least $10,000 U.S.D. to start trading." So this has been set up with $1,004.95 in a live account for trading. Why that amount? Because that is what was in another account I had with this company. It was just sitting there, so I decided to make it go to work.
8. "You cannot make any money with a bucket shop." So this account is with a bucket shop. Who doesn't really matter. I will let people know after the test is done. Good or bad.
There are probably others but I can't remember them right now. If I think of them I will add them to the thread. If you think of one post it here and I will let you know if the EA goes along with or against it.
Once the EA has been started there will be NO INTERVENTION allowed at all. If it bombs it bombs and I am ok with that. I have been testing it on demo for the last 3 months and the results have been really good.
It will be running on EU, EJ, GJ, and GU. No other pairs will be traded during the test. Risk is set at 2% per trade. Target is around 2% growth per day, roughly.
The 4 pairs were chosen because at least one of them has a good movement every day. So if EU,EJ and GU are just sputtering around, GJ is probably having a good day and will pull through for the rest of the losers. LOL!
The EA sets an initial hard stop, but this is only there in case the computer crashes or whatever unforeseen catastrophe shows up. It does have a trailing stop feature built in, but it is rare for it to actually end the trade.
I will TRY to update the results daily with a regular post but this is not guaranteed. I will only post account statements around one time a week, the rest of the time it will just be me posting what the results were for any given day.
I guess the main goal is to show people that it really doesn't have to be complicated to trade Forex.
I will probably start the EA either Monday night or Tuesday night. I want to test a small change I made to it over the last few days before switching over to the live account.
I was told early in my investment career that the best strategy is to do exactly opposite of what the masses are doing. I took this concept and after sifting through FF posts for the last few years there are several "truths" that people push as gospel that I have decided to do just the opposite of to prove the opposite of the masses concept.
1. "It is impossible to make money with an EA." So this will be an EA trading.
2. "You must trade longer time frames for success." So this will trade on the 5 min chart.
3. "You need multiple indicators on multiple time frames to line up to make a trade." OK, so this EA will run only on the 5 min using just 1 indicator.
4. "You should have a risk reward ratio greater than 1:1 before taking a trade." Sigh...... this would imply you know exactly what the market is going to do, ok, some are good at prognosticating where price is going. But it really isn't necessary. Technically, the way my EA is set up, this method has about a 4:1 risk to reward ratio initially. In reality it won't ever reach that level unless there is a catastrophic failure of my computer in which I cannot get back online to restart the EA. Not likely to happen.
5. "The only way to trade is....E.W. VSA, trend lines, stochastics, etc etc etc." While I am a firm believer that every trader needs to find the method that best suits their trading style, I also believe that we as humans spend a huge amount of time taking something simple and over complicating it. So, the EA trades only with a simple moving average. Just one. Not a moving average cross, but just candles closing over a simple moving average.
6. "Every great system has some level of discretionary trading." So, it's an EA, it either is or it isn't, period. It cannot look at a situation and go... "Yeah, that's pretty close so let's go ahead and make a trade." If it doesn't fit the rules, it will not make the trade.
7. "You need at least $10,000 U.S.D. to start trading." So this has been set up with $1,004.95 in a live account for trading. Why that amount? Because that is what was in another account I had with this company. It was just sitting there, so I decided to make it go to work.
8. "You cannot make any money with a bucket shop." So this account is with a bucket shop. Who doesn't really matter. I will let people know after the test is done. Good or bad.
There are probably others but I can't remember them right now. If I think of them I will add them to the thread. If you think of one post it here and I will let you know if the EA goes along with or against it.
Once the EA has been started there will be NO INTERVENTION allowed at all. If it bombs it bombs and I am ok with that. I have been testing it on demo for the last 3 months and the results have been really good.
It will be running on EU, EJ, GJ, and GU. No other pairs will be traded during the test. Risk is set at 2% per trade. Target is around 2% growth per day, roughly.
The 4 pairs were chosen because at least one of them has a good movement every day. So if EU,EJ and GU are just sputtering around, GJ is probably having a good day and will pull through for the rest of the losers. LOL!
The EA sets an initial hard stop, but this is only there in case the computer crashes or whatever unforeseen catastrophe shows up. It does have a trailing stop feature built in, but it is rare for it to actually end the trade.
I will TRY to update the results daily with a regular post but this is not guaranteed. I will only post account statements around one time a week, the rest of the time it will just be me posting what the results were for any given day.
I guess the main goal is to show people that it really doesn't have to be complicated to trade Forex.
I will probably start the EA either Monday night or Tuesday night. I want to test a small change I made to it over the last few days before switching over to the live account.
