Is it possible to write a profitable EA based on Technical Indicators? - page 2

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MarketArt:
Definitely possible, but not easy.

I agree with you


 
Weedjo: I miss curves, that earn (little) profit, but constantly over a longer period! 
check my admission :)
 

Yes. But ( My personal view ) the best chance of building an EA that can make consistent profit over a long period of time is to first understand the long term price behaviour of the security in question. Concentrate on a specific pair or small group and understand how they move, what happens at specific times of the day, etc...  You might find that you don't need 'exotic sounding' indicators to work with your observations... Keep it simple.

You might also find this link interesting:

http://www.forexticket.co.uk/en/tools/01-01-correlation

And enjoy it ! 

Forex Correlation
Forex Correlation
  • Forexticket
  • www.mataf.net
The following tables represents the correlation between the various parities of the foreign exchange market. The correlation coefficient highlights the similarity of the movements between two parities. If the correlation is high (above 80) and positive then the currencies move in the same way. If the correlation is high (above...
 
Chris_V:

Yes. But ( My personal view ) the best chance of building an EA that can make consistent profit over a long period of time is to first understand the long term price behaviour of the security in question. Concentrate on a specific pair or small group and understand how they move, what happens at specific times of the day, etc...  You might find that you don't need 'exotic sounding' indicators to work with your observations... Keep it simple.

You might also find this link interesting:

http://www.forexticket.co.uk/en/tools/01-01-correlation

And enjoy it ! 

Thanks for the useful link!
 
Chris_V:

Yes. But ( My personal view ) the best chance of building an EA that can make consistent profit over a long period of time is to first understand the long term price behaviour of the security in question. Concentrate on a specific pair or small group and understand how they move, what happens at specific times of the day, etc...  You might find that you don't need 'exotic sounding' indicators to work with your observations... Keep it simple.

You might also find this link interesting:

http://www.forexticket.co.uk/en/tools/01-01-correlation

And enjoy it ! 

fully agree.

 
phi.nuts:

I don't think trading is equal or even similar with gambling - not even close ;D. Those rich list from trading the market (Warren Buffett, George Soros, et al) are never gamble the market.

Trading, mainly is buy and sell something with a plan, while gambling does not buy or sell something even with a plan.

Say for example a fruit seller who sells Apples, Oranges, Bananas, Grapes, etc.. Fruit seller maybe buys fruits on Friday, hoping he can sell it on weekend before the fruits goes rotten. On weekend his Apples, Oranges, and Bananas are sold out, but not the Grapes. So on Monday he have to sell the Grapes below its buying  prices - unless he wants a rotten Grapes - so he sells the Grapes at a loss. At least the Fruit Seller can make the capital back and keep his fruit business running.

If JPAlonso is a Ice Cream seller. I don't think he will make much of profit (will certainly makes more loss) selling ice cream in Winter compare than selling ice cream in Summer.

In gambling, a gambler buy and sell nothing. Well, actually a gambler create himself a hope for himself and sell his money to buy that hopes.   

In Fruit and Ice Cream example, a marketing and selling is a good plan before trading. In trading the market and exchanges, good reading on indicators and all trading possibilities is one-third good plan, making firm trading decision is another one-third good plan and another third lies in executing it.

A good EA is the one which reads the indicators and all possibilities, "read" it's plan and executing the plan.

Agree with your statement about Gambling and Trading..

Surely there are a good EA out there which can produce a good profit but I think we can't just count on EA itself..

Since we know EA was made only from a bunch of static human Logic and Strategy.. :)

 
Yes its possible. But tge problem is that we humans tend to make things so complex while the answers are so simple. I have had it happen that the more lines i removed from the code, the more profit it started to generate. I ended up calling just one indicator and a few lines of code that worked best. The utmost important factors are the settings you put in you need to know where the edge is at and you can discover this by running many,many simulations and tweaking one of the settings slightly to see if profit goes up or down much like fine tunning the ignition of a formulae one racing engine if the setting is off by just one it can and will make your code from a winner into a loser by running many simulations you find sweet spots those are your foundation and from there you build up your strategy. At first 1000 profit amazes you and gets you goin but shortly after, seeing millions becomes normal.
 

Bases on my experience, writing a profitable EA for MT4 platform is possible;
but it's difficult for MT5 platform, because the FIFO rule of MT5 platform.

 
tradelife:

Bases on my experience, writing a profitable EA for MT4 platform is possible;
but it's difficult for MT5 platform, because the FIFO rule of MT5 platform.

Just open another account to manage the FIFO rule. MT4 MT5 its all the same.

More feature in MT5 trading is a lot easier.

Getting a broker that supports MT5 with good rates HORRIBLE.. MT4 Broker reasonable rates. Just in the United States

Out of the United States.. Reasonable rates... for MT5

 
wehsnim:

Just open another account to manage the FIFO rule. MT4 MT5 its all the same.

No, it's definitely not same.
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