Thank you Dominik!
I tried trading manually but it was emotionally too taxing that's why I came up with the idea to program the whole thing. Also trading is time consuming and computers are way faster and never sleep.
But since i am very interested to know what trading system was most profitable to use for you based on price action only?
What key recommendations would you make for designing one that would be simple and reliable?
Does it include indicators for relative price strength and direction or for example trading breakouts or grids?
Based on my own experience, I find that the most important aspect of having a consistent and profitable strategy, is how you handle your risk and your money. I would rate the importance of different aspects as follows:
- Risk & Money Management (maximum importance and most essential part of all the strategy rules).
- Exit rules.
- Entry rules (least important).
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Fernando Carreiro, 2022.06.10 22:50
As I stated, both at the same time may not be possible!
When I started with MQL, I was already an established software developer with 30 years of experience. But even then, I approached it the way I described. Even with my solid background in C and C++, MQL was not just about coding. It also had to do with the MetaTrader platform and trading concepts, and those were totally new to me.
Many of the strategies I had in the beginning eventually got bashed away by the reality that trading can differ totally from what one thinks it is in the beginning. I came up with very elaborate stuff, only for them to be ultimately thrown in the bin because I was naïve.
As I progressed, I realised that my trusted friend in coding, namely K.I.S.S. (Keep it simple, stupid!), is just as relevant in trading as it is in much of anything else in life. Complex strategies are useless and just distract us from what is really important.
As time went by, my strategies became simpler and my EAs become more refined. However, to my surprise, over time, money and risk management became the central theme of it all. It gradually became clear to me that entry rules were not all that important, but exit rules, risk and money management can make or break a strategy and became paramount for me.
In essences, almost any indicator gives approximately the same signals, given that they all derive those signals from the price action itself. So you might as well stick to the simplest and cleanest of indicators and concentrate on the exits, risk and management of the trades.
With that in mind, I decided that my code should be simple, clean and efficient, and focus on the risk and trade management and very little on the indicators and signals they generate.
This is my advice to you. Learn to code MQL and understand the platform and trading, methodically and properly, because as you do, you might find that your current strategy is going to end up in the trash bin.
NB! My journey with trading and MQL took me years (not months), to get to a level I could be happy with.
All you need is a Proven Strategy that has a Positive Expectancy, no need to think of the MOST profitable, but it's still hard. And don't risk more than 2% to 3% of your portfolio per trade. And you will go to the moon because of the leverage, just in case you found a proven positive expectancy strategy. Again, it's hard and you need to learn and try different trading techniques.
I am 5 months into this and I am still trying new things. I only trade 0.01 lots(occasionally 0.02) with my cent automated account. The best I could archive with my automated account was +8% when Yen was dropping, and that algo is not currently working after Jul.14th. And now my automated account is at -12%.
Hello friends,
I have been working on a forex trading bot this summer in the prospect of financial freedom for me and my family also because I like the challenge.
I have tried a few trading strategies which are mainly based (Exponential) moving averages combined with RSI on the 1 and 5 minute timeframe.
To me it seems the market is very much just random too random to actually make a profit, it never seems to have one direction and prices shoot around all over the place.
for example I tried the 8-13-21 EMA crossover on the 5 minute timeframe and it does not turn a profit.
Also the 25-50-100 EMA crossover on the 1 minute timeframe is not profitable so far running on demo accounts most of the day.
I looked up on:<Deleted>
For some examples and I noticed many expert advisors use gambling strategies like grid trading and martingale.
Now I start to wonder is forex trading actually gambling or is it even possible to write a profitable expert advisor without risking the whole account?
If it would be very profitable what kind of strategies are being used, what timeframes are being used?
Or is just all some kind of hoax because I have not heard of many people becoming rich because of trading algorithms?
Please let me know if you have some valuable information or view on this topic
It is certainly possible - Jim Simons could be considered one of the most successful people in this field and there is book about him: The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution. While it may not reveal exactly how to do it, it does give some insight into his journey.
Another person to read about is Rich Dennis, who bet his stellar reputation on being able to train novices how to trade using his method (rather than automated algo). He achieved it and it is even taught as a case study in some business schools. A book on that is: The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires
Fortunately for us, platforms like MetaTrader exist making the journey somewhat easier rather than having build from scratch (like Jim Simons), and there are so many books about trading in MT which can show you the way (just search Amazon).
So if you are willing to put in the long term effort, as mentioned by others above, you may well find what you are after
Thank you Dominik!
I tried trading manually but it was emotionally too taxing that's why I came up with the idea to program the whole thing. Also trading is time consuming and computers are way faster and never sleep.
But since i am very interested to know what trading system was most profitable to use for you based on price action only?
What key recommendations would you make for designing one that would be simple and reliable?
Does it include indicators for relative price strength and direction or for example trading breakouts or grids?
Hi Magus, you can build EA based on price action, but first you have to know how it works and what you are looking for, because price action is very discretionally method. Also please note that, market on different currency pairs/metals/indexes and time frames behave in different way, so own research seems neccessary. Regards Greg
Here is a strategy that you can code that's already been tested.
Robust systems have very few parameters to test.
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I have been working on a forex trading bot this summer in the prospect of financial freedom for me and my family also because I like the challenge.
I have tried a few trading strategies which are mainly based (Exponential) moving averages combined with RSI on the 1 and 5 minute timeframe.
To me it seems the market is very much just random too random to actually make a profit, it never seems to have one direction and prices shoot around all over the place.
for example I tried the 8-13-21 EMA crossover on the 5 minute timeframe and it does not turn a profit.
Also the 25-50-100 EMA crossover on the 1 minute timeframe is not profitable so far running on demo accounts most of the day.
I looked up on:<Deleted>
For some examples and I noticed many expert advisors use gambling strategies like grid trading and martingale.
Now I start to wonder is forex trading actually gambling or is it even possible to write a profitable expert advisor without risking the whole account?
If it would be very profitable what kind of strategies are being used, what timeframes are being used?
Or is just all some kind of hoax because I have not heard of many people becoming rich because of trading algorithms?
Please let me know if you have some valuable information or view on this topic