Brokers feeding all the bull one can bear!

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Market volatility is caused by buying demand & supply/selling pressure! And we are led to believe, and fed all the bull, of following reasons:

  • Macroeconomic statistics, such as inflation, have the greatest impact on forex markets.
  • Stock, bond, commodity, and other capital markets also have a strong influence on exchange rates.
  • International trade numbers, such as trade deficits and surpluses, play a vital role in forex markets.
  • Political news can also be important for forex traders, especially when unexpected outcomes occur.

The reality is however very artificial, manipulated & quite brutal.
Market volatility is a result of interbank & market maker's "real-time feeding frenzy on traders opening positions"!
Here brokers play a central role by offering low liquidity/carrots/peanuts, a probable signal with potential to profit as a trap and traders get sucked in! Beware, underneath there's a devious collusion at play!

Ever wondered why an EA with solid profit performance (SR > 1) on backtesting fails miserably when it goes "live"??? Because, backtesting feature & service (part of carrots & peanuts gives a false sense of potential profit/hope) is blind to these institutions, but the moment that EA places/excutes a trade, their real-time "trained systems/agents" make U-turn to take out those positions. If one were to close a loss making position, the price would freeze and change, otherwise SL hit is 100% guaranteed.
Also, if one uses VPS or cloud system for backtesting, the data provided is manipulated through fake spread and/or quality and hence the difference in results obtained, as compared to the backtesting done on home PC!

If you do manual trading, then ever noticed the sudden price freeze & jittery zizgaz to create new resistance around and then instantly rapid change of price direction, these clues/giveaways are enough to confirm how trading is "gamed and designed to take out as many live positions as possible or spook one into closing in loss"! This ensures colluding parties always wins!

"Brave traders" who do not put SL (the only viable strategy to survive & thrive) have to weather a lot margin on every trade to eventually take the meagre profit!

P.S. This is based on personal observation and so brutal opinion of the state of forex affairs that led to account blown!

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  1. Most back testing results in over optimized parameters. The past does not repeat (it does tend to rhyme).

  2. Risk depends on your initial stop loss, lot size, and the value of the symbol. It does not depend on margin and leverage. No SL means you have infinite risk. Never risk more than a small percentage of your trading funds, certainly less than 2% per trade, 6% total.

    1. You place the stop where it needs to be — where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.

    2. AccountBalance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the spread, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)

    3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
                MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum 2017.10.10
                Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum 2018.02.11
                Lot value calculation off by a factor of 100 - MQL5 programming forum 2019.07.19

    4. You must normalize lots properly and check against min and max.

    5. You must also check FreeMargin to avoid stop out

    Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5 or 0.1 Lots maximum.

 
Therefore, in addition to defeating the market, the trading strategy we designed must also defeat the broker and trading rules. Only in this way can we have the opportunity to continue in the trading market.
 
What are you talking about? There are a lot of live signal that is profitable which get profit more than deposit. But of course there are also a lot who lose in forex because of mediocre or risky strategy.
 

Instead of no SL, should have said SL that would never ever hit, otherwise defeating live FX market is just a pipedream!

Backtest performance would never be replicated in real-time live trading, as the market is armed with real-time pricing and market making "trained agents" deployed to take out as many live positions as possible, akin to feeding frenzy of hungy sharks and that's what drives market volatility. Sometime one gets lucky enough to ride the trend, but soon you would be caught up, no matter how dynamically one optimises the EA trading parameters.

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P.S. We are trading in their playground and the rules keep changing real-time as it favours them!
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