take the opposite trade solution

Maybe you could create a "growth chart EA", which automatically reverses the trade of the price EA when certain parameters are specified. lol.

http://i627.photobucket.com/albums/t...atso/silly.png

*EMAs in this example are fictional and for illustration purposes only.

Interesting article here, titled How to reverse a losing MT4 expert advisor into a profitable forex trading system?

Their conclusion: "Our conclusion is that finding a consistent loser for a reverse trade strategy is as challenging as finding a consistent winning EA."

With EA at least you know that system/rule is all obey without emotion and because of that "advantage" when you reverse most losing EA you get "temporarly" small win profit for a certain period of time.

But when it come to "human talent in losing" reversing signal will never succeed because human emotion alway get in the way, it's likely you will stop reversing your signal the first 20 trade. You will come to a SHOCKING realization that "you reverse the 20 talent losing signal" and STILL LOSE ...Which can only MEAN one thing... "drum rollllllll" ---> " You actually have a talent in WINING "


But all these talk if people doesn't realize it by now is very heavily depend on "psychology" skill....
Controlling/believe your EA will win in the future require "psychology"
Even if you have a FIX mm system, fix sl and tp system... It still require "Psychology" to stick with what you believe UNTIL THE END of your LIFE.

The problem I see is that most people do not 100% believe in anything that they haven't actually successfully DONE in real life and that take time.

So ask your self, building a CAR is not hard, companies already build car so you already know that. You think that sure it's not impossible.
But until you actually "build a car" yourself. The LOGIC of you being able to build a car because people have DONE ... is impossible.

It's a big hurdle to master psychology.

Psychology doesn't have to be a problem.

People make it a problem because they overleverage themselves emotionally. Many traders want to make a sizeable income too quickly, and/or they find demo or microlots (10c/pip) too boring. However, they should persevere with microlots, and then only increase position size when both their account size, and their belief in themselves and their strategy, justifies it. Rushing into trading lot sizes that are too large, and with less than absolute confidence in a strategy, is simply asking for trouble.

Secondly, by applying a little intelligence and self-honesty, it isn't hard to determine whether one's biggest emotional problems lie with entries, or exits. For most people, it's exits, and understandably so, because that's when there's money at stake. Hence it's arguably better to plan the trade ahead of time, including predetermined SL and TP levels, when emotions are less compelling. Subsequently, unless it can be shown objectively that market probabilities have meanwhile altered, there is no valid reason to adjust these levels while the trade is in progress. Hence if exits are a problem, simply set a TP or a trailing SL, and walk away from the computer.

Thirdly, traders should trade only with money that they can afford to lose. As the saying goes, "scared money never wins". Know the risk before entering a trade, and if it causes feelings of discomfort, either decrease position size or don't take the trade.

Also, setting targets can create problems. For starters, income from trading doesn't necessarily come in a consistent amount of $X per week or per month. If a target is not being met, the trader is forced to overleverage himself, or overtrade (i.e. deviate from his trading plan).

Most importantly, if a trader doesn't have 100% confidence that his strategy (both entries and exits) is profitable, he will never be able to trade it consistently, especially if he encounters a few losses.

The bottom line is that we can make trading psychology as simple or as complex as we want to. But we must not fool ourselves: only after proving that we have a real methodological edge should we ever start to look at emotions as the primary cause of any trading failure. If we don’t know how to trade profitably, then no amount of discipline, positive thinking or psychotherapy is going to suddenly make us a winner.

Bubayaga, IMHO, your stop loss is too small. It will get hit 95% of the time and drain your account.
Such small stop is only for really, really goooood traders.
You should spend time reading tape. Only you can find your own time frame and pace of trading.

Good luck

I wish 95% had been the case because then swapping the tight stop levels for tight tp levels might have been successful.
I think I'll leave the straddle idea alone for now. might revisit it later. or not.

That's a good call..not that exchanging positions has not worked for a few traders but they have the required trading experience ..good luck.

OK SO why market makers use reversal trading to make millions usd???

Hey Buba, did you ever end up trying it?

It's really cool that you are using this strategy of yours just on demo. If you use it on your real account - well, you will be surprised for sure