Magic - page 2

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MiniMe, you are absolutely right. I don`t know any EA that worked more then a year. And thanks for this very interesting thread.

 

live vs Demo & Backtests

In engineering there are two way to solve a problem, theoretical and practical, sometimes we get lucky using only one method to solve a problem but mostly we need both.

For example, if we want to design an aircraft, we make all the designs on papers assume best conditions, and then step by step we introduce problems then at the end when we are satisfied with our mathematical approach we make a small design and put it in the wind tunnel for testing to simulate real live conditions.

Programming an EA is an engineering work and should not be different, I will introduce some facts to support my point of view:

- When designing an EA we don’t consider, the news where we have wide spreads and big market moves

- When designing an EA we rely on backtests results we can’t see the future nor and the market turning points

- When designing an EA we depend on the backtests results where our orders are always filled

Now lest see what the situation is on a live account:

- We are exposed to the market conditions, and we are affected by the price change during the news ( wider spread)

- We can see the future as there are known market turning points ( support and resistance ) Fib levels, and news events

- In live accounts the orders are not always filled even when the price hit, simply its supply and demand while on demo and backtests the orders are always filled

Another strange yet funny thing I found is that, there are some EAs that doesn’t use any indicators they work on the price change ( Like Grid EAs) , to have the same results for those EAs we need to start them at the same time with the same broker otherwise if there were 1 min difference we will get totally different results, yet, I see loads of backtests on forex-tsd.com, and honestly I don’t see any use for those backtests, they are misleading information.

From the above I hope it’s quite clear that any EA no matter how good the results were on demo or backtests, should be tested on a live account then modified according to the live tests, and honestly I found it very stupid for people to buy an EA based on demo testing or on backtests.

Not just that, an EA should be modified from time to time to cope with the future market conditions (what I refer to market turning points) as there are points in the market where we know the price is going to bounce, it would be quite stupid to leave the EA on buy and Sell if we know the price is going to bounce from these points.

I am having a bad flue, I will stop here, and next week I will talk about some of the market obvious turning points.

Wish you lots of pips.

MiniMe

 

Big Boys

Big Boys :

When i refer to the Big Boy, I mean Interbanks, Commercial / Investment Banks, Corporations, Global Funds, Fat Cats ( guys with more than 1M$ monthly Salary)

Interbanks are worlds largest commercial banks they deal directly with each other based on credit relationships, 75% of the trades in forex are between interbanks

Just imagine, if you want to win in forex, you need to be smarter than those guys , it's possible if you play by thier rules.

 
 

The channel in the first post video file was broken long time ago, as I still belive we are heading down with EU/US.

The line shown in the first video file was a market Turning point, thats why trading MiniMe/Blaser ( Channel trading for the last 30 days ) method won't work here, as we hit a stong monthly market turning point.

Please note just because the price has reached its all time high or its all time low, it doesn't mean it can't go further it only means it will be more diffiuclt to break previous levels, and on the monthly charts the chances are 70 to 30 it will bounce back from the level reached.

 

hi

hi

very informative thread thanks minime.

 

Thank you for your analysis. It seems so straightforward. Wish the sound was there or was there any?

TY and looking forward for some more insights

 

thx minime

thank u for sharing minime. Very insightful for me, being that im a newbie. the information u posted paints a more complete picture. Knowing where we're at, but not knowing where we're going is like being handicaped, in a way. and if we are aware of both the short term and long term then we are properly equiped. and able to addapt accordingly. and we will have the advantage over those who neglect the long term outlook. We will take their monies HEHE. well thats just me thinking, but ima noob. i havent even traded yet but one day i want to be a successful trader.

 

Questions for MiniMe

It been a few days since i initially read this thread and today i came across this webvideo that talks about how the big boys use alot longer time frames in their positions. well it also talks about alot of other things but its about using fibonacci retracement lines to find this information. Maybe some of u guys have seen this video.

here is the link http://www.jeff-parks.com/html/fibo_s_2.html

the video is pretty convincing on its usuage of the fibonacci lines.

what do u think of these fibonacci lines minime?

also minime i have another question here in the US if there is a resolution on the immigration issue. and also now that there has been an increase on minimum wage to $7.25/Hr, do u think that this could help out the dollar? that would be alota workers at $7.25/Hr. and also what if these two things happened and the US also pulled its troops out from iraq? would this help alot the dollar? if no... what are the problems with the dollar? minime these questions just for fun for me to learn more about how these things work.

thanks in advance! hope u havent forgotten about this thread!!

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