I am a student majored in Math in China. Recent days I am interested in EA. I try some mehods post in forexfactory. What I have tested is a mothed as followed:
1.open a position either BUY or SELL at any price ,StopLoss=10Point,TakeProfit=40Point;
2.if TakeProfit,then stop trading until the next day.
3.if StopLoss,then open an opposite position at the stoploss price, with an bigger lot.
4.if Still Stoploss, goto 3;if takeProfit,goto 2.
This method is fit for daily trading.
I test this method in some day, and it works well.I thouht it a good systems to make big money.However,when I test it from 2000.01.01---2009.01.01,it works terrible. I loss more than 90% of my money.
The problem is that, it performs well in 90% of a year.However,it this good day,it profit little, about 5%% a day;And,At the bad day,it loss much more than 5%%.Then,one day loss, the profit of your last month is gone.
So I wonder if EA is available in trading . You can never know what will happen that aggainst to you, and if it happens, you can be badly hurt.How to avoid this hidden risk?
1.open a position either BUY or SELL at any price ,StopLoss=10Point,TakeProfit=40Point;
2.if TakeProfit,then stop trading until the next day.
3.if StopLoss,then open an opposite position at the stoploss price, with an bigger lot.
4.if Still Stoploss, goto 3;if takeProfit,goto 2.
This method is fit for daily trading.
I test this method in some day, and it works well.I thouht it a good systems to make big money.However,when I test it from 2000.01.01---2009.01.01,it works terrible. I loss more than 90% of my money.
The problem is that, it performs well in 90% of a year.However,it this good day,it profit little, about 5%% a day;And,At the bad day,it loss much more than 5%%.Then,one day loss, the profit of your last month is gone.
So I wonder if EA is available in trading . You can never know what will happen that aggainst to you, and if it happens, you can be badly hurt.How to avoid this hidden risk?
