My ongoing love hate affair with Forex has been going on for the past 10 years. I began when I first started making some money early in my career and was looking for places to invest. I came across an FXCM ad on the internet and bought in to the clickbait. I opened a few demo accounts, immediately had some successes and then blew them up. Thinking I was smarter than the market I bypassed the learning curve needed and opened some real money accounts using the highest amount of leverage an American could get at the time (500:1). Needless to say I lost almost every dollar I attempted to turn into a large profit! I took some time away, read some books, researched what makes the currency market go round, and analyzed charts till my eyes were bloodshot. Over the past few years I have demoed some strategies, learned about coding expert advisors, and a good working knowledge of MT4. All of which, I had none of 10 years back when I began 'playing' with Forex.
Over the years, I have tried a variety of strategies and found that Larry Connors study of Relative Strength Index over 2 periods to find overbought and oversold opportunities to work the best for me. I also have the goal of keeping my full time job and using expert advisors to grow my wealth. I believe that I am finally close to a system that can work almost 24/7 while the markets are open and have consistent results over a long period of time. I have backtested this strategy on 17 pairs and all have a PF of 1.4 - 2.5, which 99.9 percent modeling quality (courtesy of tick data suite 2) and drawdowns under 10 percent. The goal of this journal is to help me finish the EA and really optimize it. I have goals and plans for this EA to really scale it up to where it can make a life changing amount of money, however I know that each day a new challenge will present itself and it will need to be adapted and reworked. Hopefully this journal can help showcase the flaws and errors that can be corrected to make the system more profitable in the long run.
I have found the best strategies to be simple and not complicated. It is simple: follow the trend above a 200 period moving average. If the trend is going up then you want to buy when the RSI 2 period drops below 5.0. If the trend is going down then you want to sell when the RSI 2 period rises above 95.0. I have found just like Larry Connors, the strategy has a great win percentage however you will have the occasional large loss (mostly news based) when the trend turns against you. I am attempting to find a way to minimize the large losses even though I know they are part of the 'game'. Perhaps the scariest thing about this strategy is that applying any type of stop loss or take profit will hurt the performance. The only real protection is that if the trend reverses to the other side of the 200 MA while a trade is open then it will close automatically, that loss can be small or huge though depending on the pair.
To start this thread off I am going to be taking a week of vacation! My issue in the past is watching my EA move along and thinking that I can override it or change something about it instead of letting the EA run its course naturally live, news or no news. I am trading very small positions at 50:1, .02 lot sizes and it runs on 15 pairs, however very rarely are more than 3-4 trades open at the same time and usually lasts for 2-4 hours. I will not be able to touch my EA while on vacation and will start posting each week on the positive and negatives of the EA for the prior week. I have about $10000 USD that I can invest however, I am starting extremely small with about $500 in an account with Oanda, this way if it blows up I do not lose all my capital! I will slowly scale up if we determine that it is indeed a winning strategy! I expect to have 30-40 trades to analyze each week and hopefully in the long run we are profitable! Wish me luck!
Over the years, I have tried a variety of strategies and found that Larry Connors study of Relative Strength Index over 2 periods to find overbought and oversold opportunities to work the best for me. I also have the goal of keeping my full time job and using expert advisors to grow my wealth. I believe that I am finally close to a system that can work almost 24/7 while the markets are open and have consistent results over a long period of time. I have backtested this strategy on 17 pairs and all have a PF of 1.4 - 2.5, which 99.9 percent modeling quality (courtesy of tick data suite 2) and drawdowns under 10 percent. The goal of this journal is to help me finish the EA and really optimize it. I have goals and plans for this EA to really scale it up to where it can make a life changing amount of money, however I know that each day a new challenge will present itself and it will need to be adapted and reworked. Hopefully this journal can help showcase the flaws and errors that can be corrected to make the system more profitable in the long run.
I have found the best strategies to be simple and not complicated. It is simple: follow the trend above a 200 period moving average. If the trend is going up then you want to buy when the RSI 2 period drops below 5.0. If the trend is going down then you want to sell when the RSI 2 period rises above 95.0. I have found just like Larry Connors, the strategy has a great win percentage however you will have the occasional large loss (mostly news based) when the trend turns against you. I am attempting to find a way to minimize the large losses even though I know they are part of the 'game'. Perhaps the scariest thing about this strategy is that applying any type of stop loss or take profit will hurt the performance. The only real protection is that if the trend reverses to the other side of the 200 MA while a trade is open then it will close automatically, that loss can be small or huge though depending on the pair.
To start this thread off I am going to be taking a week of vacation! My issue in the past is watching my EA move along and thinking that I can override it or change something about it instead of letting the EA run its course naturally live, news or no news. I am trading very small positions at 50:1, .02 lot sizes and it runs on 15 pairs, however very rarely are more than 3-4 trades open at the same time and usually lasts for 2-4 hours. I will not be able to touch my EA while on vacation and will start posting each week on the positive and negatives of the EA for the prior week. I have about $10000 USD that I can invest however, I am starting extremely small with about $500 in an account with Oanda, this way if it blows up I do not lose all my capital! I will slowly scale up if we determine that it is indeed a winning strategy! I expect to have 30-40 trades to analyze each week and hopefully in the long run we are profitable! Wish me luck!
