Interested in Mathtrader's new EA. I have been trading renko EAs for a while, I had a non lag dot renko EA developed a while ago but faced the same problems as previous renko EAs which is of course facing a ranging market.
My time trading these EAs live was mixed, one day I would make an extremely large profit, but the next it would just take one period of ranging to minimize those profits.
Although it looks like Mathtrader is trying to develop a way to filter these ranges that kill winning trades, I feel as if these renko EAs are best traded semi-automatically meaning you should only use them given certain conditions.
I.e, is there a big news event that would increase volatility and put the market into a ranging period before the release? A time filter, only trading the first two hours of opens? Avoiding trading near strong support and resistance since it usually ranges before choosing a direction? Also trading near weekly pivots, supports, and resistances because price also tends to range at these points before taking off.
Although most of these EAs (thank you Mathtrader) seem to be profitable, I do question how to move forward from there. I have been trying to toy with many filters for a while and have just come to the conclusion that most filters are too late when it comes to figuring out if the market is ranging. Also these filters are not dynamic meaning a "good filter" could reduce profit of other trades.
In my opinion EAs like this will be hard to find a filter for mainly because these filters are ignoring fundamentals as to why price ranges and enters trends. If one can rely on their own analysis to choose when the EA runs then I believe it will be very profitable.
For example if I was going to have this EA run I would perform some analysis before doing so. How much space is there between major S/R? Although determining which S/R is valid I assume most people here can find areas of S/R where the market ranges. I would set alerts so the EA would stop trading once within a 10 pip range of these zones. I would also only trade during the first few hours of the LO and NYO, and also avoid major news release days (these have killed profits in my experience of trading renko EAs) bid rates, non farm roll, major announcements etc.
I plan to forward test these EAs, semi-automatically and see if a little technical and fundamental analysis proves to be a better filter than an indictor of if I'm just spouting bs
My time trading these EAs live was mixed, one day I would make an extremely large profit, but the next it would just take one period of ranging to minimize those profits.
Although it looks like Mathtrader is trying to develop a way to filter these ranges that kill winning trades, I feel as if these renko EAs are best traded semi-automatically meaning you should only use them given certain conditions.
I.e, is there a big news event that would increase volatility and put the market into a ranging period before the release? A time filter, only trading the first two hours of opens? Avoiding trading near strong support and resistance since it usually ranges before choosing a direction? Also trading near weekly pivots, supports, and resistances because price also tends to range at these points before taking off.
Although most of these EAs (thank you Mathtrader) seem to be profitable, I do question how to move forward from there. I have been trying to toy with many filters for a while and have just come to the conclusion that most filters are too late when it comes to figuring out if the market is ranging. Also these filters are not dynamic meaning a "good filter" could reduce profit of other trades.
In my opinion EAs like this will be hard to find a filter for mainly because these filters are ignoring fundamentals as to why price ranges and enters trends. If one can rely on their own analysis to choose when the EA runs then I believe it will be very profitable.
For example if I was going to have this EA run I would perform some analysis before doing so. How much space is there between major S/R? Although determining which S/R is valid I assume most people here can find areas of S/R where the market ranges. I would set alerts so the EA would stop trading once within a 10 pip range of these zones. I would also only trade during the first few hours of the LO and NYO, and also avoid major news release days (these have killed profits in my experience of trading renko EAs) bid rates, non farm roll, major announcements etc.
I plan to forward test these EAs, semi-automatically and see if a little technical and fundamental analysis proves to be a better filter than an indictor of if I'm just spouting bs
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