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Questions regarding EA/Automated Trading

  • #1
  • First Post: Nov 27, 2016 10:01am Nov 27, 2016 10:01am
Hello folks,
I am kinda newbie in FX Market. I know some basics but do not know who actually makes profit in forex.
Coming to point,



- Can EA be trusted ? Suppose I am not trading manually and I just want to run EA on VPS, will it be a good deal ?
- How much average returns I can assume using EA? I checked some EA and found monthly ROI over 150% ! Is it real or fake ? Needs guidance.
- I am beginner and I can't trade myself. Is there any way I can make profit in FX using PAMM ? If yes, please explain in detail.
- What will be better ? EA or managed funds?

I know many ppl will say that it depends on particular opinion, but I just want some clear info as I am planning to start Forex as a passive income stream. It will be great if you take your time to reply.

Thanks in advance
  • #2
  • Nov 27, 2016 8:24pm Nov 27, 2016 8:24pm
Quoting New93
Hello folks, I am kinda newbie in FX Market. I know some basics but do not know who actually makes profit in forex. Coming to point, - Can EA be trusted ? Suppose I am not trading manually and I just want to run EA on VPS, will it be a good deal ? - How much average returns I can assume using EA? I checked some EA and found monthly ROI over 150% ! Is it real or fake ? Needs guidance. - I am beginner and I can't trade myself. Is there any way I can make profit in FX using PAMM ? If yes, please explain in detail. - What will be better ? EA or managed...
No brother, automated system never make money and most PAMM account statement is fictitious and somewhat broker's own accounts to show 35000% return or higher. It needs time and real money to test the market and make living out of it.
Have you ever invested in equity,commodity or forex before and how much you lost ? It can take upto 7 to 10 years to become a good trader. Do you have time?
Never Gamble Forex
  • #3
  • Nov 27, 2016 11:22pm Nov 27, 2016 11:22pm
Hello

can some one create an Simple EA from the indicator

buy if MACD crosses the MA 50

and sell MACD crosses down The ma50
Attached File(s)
File Type: mq4 macd.mq4   4 KB | 432 downloads



plz if any one

i will be thankful to him
  • #4
  • Nov 28, 2016 1:36am Nov 28, 2016 1:36am
Quoting yesyoucan
{quote} No brother, automated system never make money and most PAMM account statement is fictitious and somewhat broker's own accounts to show 35000% return or higher. It needs time and real money to test the market and make living out of it. Have you ever invested in equity,commodity or forex before and how much you lost ? It can take upto 7 to 10 years to become a good trader. Do you have time?

Then why people sells EA ? And how they make so much profit from that ? I have not traded before. I know learning requires time and patience and earning is not guaranteed after that also. Only very few makes profit and most of them never share their strategy. I am looking for a passive income source where I don't need to look after any parameter. I want an earning without drawdown.
  • #5
  • Nov 28, 2016 2:55am Nov 28, 2016 2:55am
Quoting yesyoucan
{quote} No brother, automated system never make money and most PAMM account statement is fictitious and somewhat broker's own accounts to show 35000% return or higher. It needs time and real money to test the market and make living out of it. Have you ever invested in equity,commodity or forex before and how much you lost ? It can take upto 7 to 10 years to become a good trader. Do you have time?
I do not understand why no one who I know that good trader never use EA for trade...just using for signals...
What is is main reason ? I sure no different between hand trade and EA trade ...My mean EA work true but the result is fail
  • #6
  • Nov 28, 2016 3:46am Nov 28, 2016 3:46am
Quoting New93
{quote} Then why people sells EA ? And how they make so much profit from that ? I have not traded before. I know learning requires time and patience and earning is not guaranteed after that also. Only very few makes profit and most of them never share their strategy. I am looking for a passive income source where I don't need to look after any parameter. I want an earning without drawdown.
why people sell EA?
because it's sold for profits . There is still market for EAs , whether profit or loss will be realized later on.

Quote
I am looking for a passive income source where I don't need to look after any parameter. I want an earning without drawdown.

You are at wrong place. If you take this as part time income in form of trading or investment , both will face draw down. Be small or large funds you have, will face draw down and proper money management skills helps trader to manage or hedge risks at break even and make consistent profits out of it. Most successful traders/investors lost money in market,faced worse financial situations . If you aren't capable to loose money then this isn't right place for you. Try some other business where risk isn't that much compared to forex trading. Yes you can't gain all knowledge in forum , it requires life experience to learn and trade the situation so you need to risk money(real money not virtual money) to test parameters. You may fail in many occasions but will learn by time , btw apart from money you need to invest internet expenses, computer, electricity, sleepless nights and of course lot of time . You can browse many so called Gurus who teach you for fees but overall success depends on you , Guru can't make money for you rather can be fatty enough by tuition as his passive income. So no shortcut here...but there is no other business in the world which can be done sitting on computer except trading, yes gambling sites,pokers do but those are gambling not legitimate as this does.

Quoting javad.111
{quote} I do not understand why no one who I know that good trader never use EA for trade...just using for signals... What is is main reason ? I sure no different between hand trade and EA trade ...My mean EA work true but the result is fail
See EA basically pre programmed strategy which can work automatically when situation appears. So you can run it on virtual server and you feel relaxed it will automatically buy sell for you and make profits.

sometimes EA works perfectly but this happen only in trendy markets time , during choppy sessions and side ways season EA generate lots of false signals and trade accordingly , cause draw downs. During high voltage news or something obscure situation if there is sudden plunge of 300 pips or higer EA can't decide what to do. ... and it's not possible to add human trading parameters to EA, in that case cost of EA will come at ridiculous price when it can't be marketable.

Have you seen in any business Robots do all sort of things , manufacturing , selling, taking payments? Obviously not. It's same at forex business. You can add part task for it but full automation isn't possible with profit.
Never Gamble Forex
  • #7
  • Nov 28, 2016 4:14am Nov 28, 2016 4:14am
I was "hand" trading for a while. But when i analysed my trading results i came to conclusion that my emotions are a big problem. I could be profitable for months but then one mistake based on my emotions - crash, revenge trade, crash again, loss of confidence, fear of trading, .... causing bad string.... you know how it ends.
I knew my strategy was profitable when used correctly. So i paired up with my friend (computer freak, analyst) and we made our own EA. That i think is one of most important points - you must know EA 100% before using it - even if not your product.

So i don't trade manually anymore. I think EA has some advantages before manual trading:
- 100% sticking to rules
- 100% sticking to money management plan
- less time consuming
- less stressfull
- ...

If you don't have your own EA or no capability to build it based on your strategy, then i suggest you to invest your learning time mainly in analysing other's EA performance statistics - get to know how to read them and what is important and what not. For example: profit % is not that important like sortino or profic factor, ...
Learn how to make good backtesting ... PAMM account manager is ever more popular choice of proffesion.
  • #8
  • Nov 28, 2016 4:44am Nov 28, 2016 4:44am
Quoting yesyoucan
{quote} why people sell EA? because it's sold for profits . There is still market for EAs , whether profit or loss will be realized later on. {quote} You are at wrong place. If you take this as part time income in form of trading or investment , both will face draw down. Be small or large funds you have, will face draw down and proper money management skills helps trader to manage or hedge risks at break even and make consistent profits out of it. Most successful traders/investors lost money in market,faced worse financial situations . If you aren't...
So the problems not for EA...its for us...our strategy ...EA works exactly we want ...
As a question I want to know brokers can see our EA code ?!
  • #9
  • Nov 28, 2016 5:24am Nov 28, 2016 5:24am
Quoting javad.111
{quote} So the problems not for EA...its for us...our strategy ...EA works exactly we want ... As a question I want to know brokers can see our EA code ?!
Yep. EA do exactly but market don't allow them to do . Broker can detect your EA but code? Nah don't think so.
Never Gamble Forex
  • #10
  • Nov 28, 2016 6:40am Nov 28, 2016 6:40am
Quoting yesyoucan
{quote} Yep. EA do exactly but market don't allow them to do . Broker can detect your EA but code? Nah don't think so.
Thanks Yesyoucan
  • #11
  • Nov 28, 2016 8:35pm Nov 28, 2016 8:35pm
Quoting New93
Hello folks, I am kinda newbie in FX Market. I know some basics but do not know who actually makes profit in forex. Coming to point, - Can EA be trusted ? Suppose I am not trading manually and I just want to run EA on VPS, will it be a good deal ? - How much average returns I can assume using EA? I checked some EA and found monthly ROI over 150% ! Is it real or fake ? Needs guidance. - I am beginner and I can't trade myself. Is there any way I can make profit in FX using PAMM ? If yes, please explain in detail. - What will be better ? EA or managed...
Any technical indicator used might make you money over a set of trades. In reality it is not the indicator that makes you money but the laws of probabilities. For example, if your EMAs give you a signal to buy at the same time that some big investment manager places a huge buy order that may cause the price to rise and put you into profit. The fact is it is not your EMAs that made you money but the IM who placed the massive buy order. Next time your EMAs give you a signal to buy the IM may do the opposite i.e. place a huge sell order and that may cause the price to fall and put you into a loss. Naturally you would think that your EMAs stopped working and try another indicator but the same thing could happen time and time again.

The best strategy is to try an indicator or whatever method for a set of trades - Mark Douglas strongly advises 20 - 25 trades - and see if it works. If it does keep the method and try the next 20 - 25 trades. If not check why it fails and tweak your variables or change your method.

Start small, some brokers offer as little as 10 cent per pip, and make sure your account can withstand 20 - 25 losses although the chances of getting 20 - 25 losses on a row is very unusual.

Good luck
  • #12
  • Nov 28, 2016 9:52pm Nov 28, 2016 9:52pm
it has been years since i was last on the ff forum and i am not familiar with it anymore, but i think it used to have .mt4 source files available for downloading, are they no longer available? or how & where do i find them?
  • #13
  • Nov 28, 2016 9:58pm Nov 28, 2016 9:58pm
say no more

Attached Image
Holy grail, pls pm
  • #14
  • Nov 28, 2016 10:18pm Nov 28, 2016 10:18pm
above all, one should UNDERSTAND how prices are working. the spread can lead to some dissasterous consequences. here is an example of 30 pips SL/TP. it clearly states the spread stopped from opening some trades, therefore there are just 5 TP vs. 10 SL. this is just visual example. in real trading conditions it is similar. not exact, but similar.

99.9999% of all EAs are not prepared for this price challendge! that is why, these EAs are super profitable at backtesting and end up as net losers at live trading.

in trading this should be your lesson no.1! everything else could wait...
Attached Image (click to enlarge)
Click to Enlarge Name: image.jpeg Size: 328 KB
Maadik Hugiis. IQ 69.
  • #15
  • Nov 28, 2016 10:23pm Nov 28, 2016 10:23pm
As mentioned, EA's aren't the problem, it's the strategy behind them. If you know how to trade and can get consistent results over time with that strategy then it can be made into an EA. But you're unlikely to find what you're looking for in the market place available to buy. People just don't sell profitable systems...ofcourse I could be wrong, maybe an EA out there does work well, but you've gotta spend a heck of a lot of time and money finding it!

Honestly, if you have some money to invest then look for a fund manager or buy a property to rent out for that extra income. Trading is a full time business where you are up against the best brains of the financial world. Doing it on the side isn't really an option, unless you're a genius or on NZT

Dom
  • #16
  • Dec 1, 2016 4:43am Dec 1, 2016 4:43am
- It totally depends on the strategy your EA is using. If you are using a right EA which has generated returns, definitely then it can be trusted and you can run it.
- Well return also depends on the leverage your EA is demanding. EAs using higher leverage can give return around 150% when trend goes in your favor, while normally without considering leverage factor, the average return tends to be 5-10% which is quite good.
- Yes you can make profits in FX using PAMM but yes it also depends on the strategy used by your manager. As he will be monitoring your account and there will be no conflict of interest and mostly MAM commissions are generated from the profits made, so it can be beneficial for you.
- As such both are equally good only automating trading in your account. however, sometimes EAs can still add positions in your account even if Trends moves against you which can lead to huge losses in your account as EA its just a script you run on your account which can malfunction as well sometimes. While, In case of PAMM, the manager itself will be monitoring your account so it can lead to comparatively less losses
  • #17
  • Dec 1, 2016 6:59am Dec 1, 2016 6:59am
Forex is a massacre and its 2/3 handled from automatic systems. Finding a good expert advisor is the hard part . And it needs a lot of testing before and a lot optimizing afterwards. Its never a set and forget kind of thing as the most people think.
  • #18
  • Feb 11, 2017 5:54pm Feb 11, 2017 5:54pm
Trading with an EA could save your time (if you are a scalper), EA are based on some sort of strategy. So, if you trading with someone else’s EA then make sure you know the risk and his strategy and how EA works (functions). There are a lot of EA out there those advertisement looks so nice but I suggest you to build your own EA with your won strategy.
I use my own EA (based on Price Action) sometimes.
Oh! And make sure your broker allow EA. Mine is no problem (Hanseatic Broker)
  • #19
  • Last Post: Feb 11, 2017 6:30pm Feb 11, 2017 6:30pm
Quoting cityrohit
Hello can some one create an Simple EA from the indicator buy if MACD crosses the MA 50 and sell MACD crosses down The ma50{file} plz if any one i will be thankful to him
I am pretty sure mt4 has a MACD EA. Make your fast 1 and your slow 50 and good luck. Or, if you somehow have a MACD on your chart with the 50, I guess like an Ichimoku or something, then leave fast 12.
You cannot be extraordinary by being normal
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