Quote:
Originally Posted by new2ea  even though Expert Advisor is great in make trades for us automatically,
after some time, i still feel that manual trading is better.
Having tried on quite a lot of EA that sound promising, but at the end the EA lose my money automatically.
Recently, my manual trading almost double my account balance from 2600 to 4488 with floating profit 326 within 1 week.
This even enhance my opinion that manual trading is better, even though you have to put a lot of effort and time to learn.
I also found that nowadays, most of the EAs having a few similar features:
using scalping strategy & trading during off market hours- this is because this kind of strategy having high success rate, so that to attract customer by showing the back testing results. But it's killing your account when it hit the stop loss.
if you think carefully, if the spreads on the currency pair is 2 pips, and you are target for 10 pips, then the "cost" of your trade will be 20%. if the stop loss is 50 pips, then you are risking 50 pips for earning 10 pips. Personally i don't think the risk/reward ratio is great. My advice is stay away from those scalping EA that do not set stop loss!!!
I'm more interest in swing trading, and trying to catch the whole trends. During recent volatile market condition, you can easily catch 100+ pips profit.
Anybody can suggest some great swing trading EA? |
But, as you mentioned the other half of the risk/reward ratio is the win/loss rate. If you can mantain a high 90+% win/loss rate, with very few consecutive losses, than using a higher SL than TP can work, at least theoreticaly. The problems seem to come from assuming too much reliability and setting a high risk level. Sooner or later any system will take a series of losses, and these scalpers could easily wipe out an account if your not prepared.
That said, I think these scalpers, and this EA in particular, are fine toys to add a few pips during an otherwise slow trading period. However, I can not think of them as stand alone money makers. As new2ea has mentioned, the majority of my trading profits also come from capturing swings and short term trends.
I dont know how you could mechanicaly automate the entire proccess as a good percentage requires discretionary choices, candlestick analysis, chart patterns, and multiple time frames. However, once the trading world gets over the idea of paying for fully automated EA's, as if they ever will, what is really needed is a semi automatic trading platform that can execute and manage manualy chosen trades. Something beyond the simple SL, TP, and Trailing Stop settings. This could be as simple as setting an entry point based on a breakout or reversal, with confirming oscillator and moving average, and several filters, and then following it with a manualy trailed SL and a TP.
If you can write an EA to manualy trail a stop based on a combination of support/resistance, fractal positions, moving average trend lines, and individual bar sizes, and automaticaly adjust its method of trade managment to allow for an oscillating trend or to capture a parabolic move, you might have something.
If you could then analyze the current risk, and add to the position as the stop rises, maintaining a maximum risk level, and holding several open orders, taking partial profits by closing some orders at ATR targets, and holding others on the trend line. Constantly adding to, and taking profits as the trend oscillates, untill it eventualy breaks down and closes all the position, or possibly goes parabolic triggering a different strategy involving a shorter time frame and tighter stops.
If you could write a program to do this automaticaly, or on a semi automatic basis where the user specified the trend and trend line to follow, and the EA picked out the different sorts of breakouts to initiate and close trade segments on. This would certainly be interesting.