Reverse psychology?

Firstly I would just like to apologise if this topic has already been covered by someone else on FF, but I was just wondering about the following.

Is it possible to transform a losing strategy/EA into a winning one by simply taking the opposite signals to what the strategy/EA suggests?

The reason I ask is because although some traders have found a strategy/EA that works for them, most of us are still searching, and our search always consists of finding one that produces winning signals, though recently I have begun to think a bit differently as there are plenty of unprofitable systems out there, and so could it be as simple as to find the most unprofitable one and just reverse the signals?

I'm afraid I don't have enough experience to know whether or not it's that simple, but it certainly sounds good on paper!

I think you'll find many systems have correct entry signals, the part where people go wrong is when to exit, keeping this in mind, even if you enter in the opposite direction, if your exit is still bad, you will probably still be losing money.

But don't feel bad, we've all thought about it at one stage

I think you will find any system is profitable under certian market conditions...usually a trending market, but since markets trend alot less than they consolidate. all the money made trending is given back during consolidation when market coditions are not friendly to the system. you want to be a long term trader? learn to trade price action, you will adjust to any market condition

reverse trading is not a good method.

First of all, you need to have a system with a +ve expectancy.

Once you have that, you need to understand that there is no system that works all the time every minute of your trading journey. There will be times when the system performs less well. You just need to understand that in the long run, you will make money due to your +ve expectancy.

However the truth is, a lot of EA out there do not have a proper system. So there is no true edge. Irregardless of how you reverse your trades, you will end up a loser.

Next thing to understand is that exits are what determine your profits. Entries help increase that profit. You can try this experiment. Try to randomly enter a buy or sell trade on any pair at a random point in time. You will find that it is not that easy to lose pips. However, where people fail is knowing when to take profit or cut loss.

The other important thing you need to pick up is that money management will keep you alive. You need to lose less when you are wrong and make more when you are right. That is the only way to make money in this business. It is entirely possible for 2 people who trade exactly in an opposite manner to both be profitable. For example: if trader A buys at 1.5555, trader B will sell at 1.5555. You might be wondering how can both be profitable traders if only 1 person can be right at any given time... and that answer is money management. Seek it out. Learn it well.

One way to win and 99 ways to lose. If you accidentally catch this 1/100, congratulations.

I agree with Ivan, one way to win and 99 ways to lose.
You're thinking too much into this. You're following the foot steps of the many failed traders before you. With new traders, you guys put soooo much hope in a system developed by someone else without taking the time to learn your trade. It's as if everyone applies to a hospital to become a doctor right out of high school and it doesn't work that way. Scrap the "system". In there are no "systems" that will make you wealthy overnight. The "system" isn't real. What is real are the losses you'll take on if you don't properly learn this trading game.

The idea of trading is easy, it's the execution that get many traders in trouble. Trading is simple, choose buy or sell, and enter trade. What keeps traders in the game is not "system", it's what that trader know and how that trader reacts to the unexpected behaviors of the market. That is what makes a person a pro-trader.

I know it sounds like I'm preaching, but who cares ... I'm telling you this for your own good. Better I tell you this now than the market showing you this later. Take time to lean price actions, money management, order management, global economics, news releases, psychological aspect of trading, and many more. Don't waste no more time or money on systems. Spend that time wisely learning the market and how to trade the market.

preach it brother

I beg to differ. It is not the ONLY way.

It is hard to believe...and second...
any market keeps changing all the time.
The things that worked for you for 1 week and made you think that you are successful, on next week they work against you. Why? Because the market organized the "successful" traders and took all their money by going against them for they already increased their lots.

But beginners and simple traders keep and keep searching for profitable systems.
Everybody is free to do whatever...

Firstly I would just like to apologise for not responding sooner to any of you that have been kind enough to give your opinion on this topic, your comments make a lot of sense.

Secondly, I know there are some very profitable strategies out there, but I have decided that the only way to go is to learn how to trade properly, and so I am going to start learning the hard way, so to speak. I already have a basic knowledge but have not yet learned how to apply it properly.

I am going to start by reading John Templeton's, Trading in the Buff, as this has been recommended to me by someone on another forum, though I do not want to stop there and so any other recommendations would be more than welcome.

Thanks and good luck to all.

Old thread, but if I stumble onto it, others will do also. Therefore, a quick 'my two cents' on this topic.

In my opinion, if one was to only guess if price would move up or down over a specific period of time, this would be equal to 'gambling' and the odds would be around 50/50. Since about 90% of traders lose at forex, there seems to be something fishy going on: something (or better: somebody) is manipulating the 'natural flow' of the currencies (like watching over your shoulder during a game of poker). If this is true, then these cheats must really love the way we program ourselves to become predictable for them: they only have to wait for us at support/resistance levels, push price up or down a bit in order to trigger our indicators (trading systems), etc. - hell, they even offer free webinars and stuff to get you more 'educated' - and in the end you wonder why price just seems to move the other way, after you open a trade :-)

So, by all means, go ahead and learn how to trade properly, they will thank you for it.

The solution to all this is simple: break the habit of being predictable; stop jumping onto 'moving data', wait for price to break through support/resistance and only get into trades after it pulls back (if you're wrong, you'll only be losing a small amount of pips, 'cause your stop will be close to your entry). Of course 'they' know these techniques too, but the fun thing is: they'll have to spend their big money at some point, so no matter all the jig sawing and stop hunting, if you stay patient and disciplined enough and stay out off their reach (traps), you will come out a winner. That's why psychology is so important in this dirty game (as it is in all other areas of life, especially where there's a lot of money involved - a good example is the medical industry).

Hope my ramblings turn out to be useful for some of my fellow (would be) traders.

Cheers you all!