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General Discussions about Forex and trading
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Old 2008-10-18, 01:06 PM   #1 (permalink)
Pip Sergeant
 
Posts: 331


Default General Forex EA discussion

Amazing discourse, I accually learned from it. Thanks.

I believe the reason a seller recomends one brokerage over all others is an affiliate arangement where as an introducing broker they get a kickback. Nothing wrong with this, but it should be stated.
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Old 2008-11-01, 04:58 AM   #2 (permalink)
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Quote:
Originally Posted by Ken Long View Post
Amazing discourse, I accually learned from it. Thanks.

I believe the reason a seller recomends one brokerage over all others is an affiliate arangement where as an introducing broker they get a kickback. Nothing wrong with this, but it should be stated.
Definitely - as my site says, I am an IB for MIG
I like their service, their data feed is fair to EA's & my managed account clients like having their money in Switzerland
Some other brokers have a data feed that is soooo different I cannot get any EA to work properly
Downsides of MIG are min $5000 to open & no micro/nano accounts...

As you say, some EA sellers appear to have unstated links with brokers, but hey, if the EA makes money, frankly who cares?!
A far bigger problem is the marketing of hopeless EA's to Fx newbies
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Old 2008-11-02, 10:27 AM   #3 (permalink)
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BB,

As I stated, I have nothing against an affiliate arangement if it is fairly stated. This goes for brokerages and software. I really find it measures the mark of a person by what their willing to endorse.
There are so many affiliate marketing hacks out there, that are willing to endorse every piece of new or, has been software that comes around the wheel. The only solution is to block their e-mails. They are really no different than all the newletter writers and stock pumpers who want to push their ideas.
Still, I've found it benefits me to be fairly trusting with my e-mail address. I've found a few people with good information and advice, free reports, EA testing results, etc. Sometimes its necessary to give them a litle leeway, thats is how they pay the bills. Personaly, I dont care for sales and marketing. I would prefer to trade for a living, manage some robots, and maybe even write a few. The robots are still new to me. Mostly I enjoy learning and sharing. Its good karma.

Don Steinitz, in one of his postings on the FPA forum, explained his broker relationship. He recomends a prefered brokerage, and gets a kickback on trade volume as an introducing broker . He has an arrangement where if you use his prefered broker he splits the proceed with you through regular payments on your PayPal account. I think this is very fair.


A lot of hopeless traders want hopeless EA's. It supports their hopelessness. Like any subconscious dilema, its very hard to break that reaction. For many of us, becoming a competant trader requires a massive subconscious change. Very few of us are trained to handle this sort of endeavor, and only a few are willing to subject themselves to that sort of change.


On anouther topic, I have noticed that you have what you call discresionary EA's. This interests me. Most commercial EA's are black box systems, even the freeware thats available has a very limited user interface. This is what attracts me to an EA such as the Steinitz. It has an absolultely massive user interface. If one takes the time to get to know it, they can truly use the EA as an extension of their own trading. This I think is the goal, or at least my method. There are a lot of robot users who put forth the idea of running a portfolio of robots, hoping the diversification averages out. This may work, but it reminds me of something Warren Buffet said, “Wide diversification is only required when investors do not understand what they are doing,” and "Diversification may preserve wealth, but concentration builds wealth."

I am looking for one or two great EA's that I totaly understand and agree with, that I can self manage. Unlike Warren's quotes on management, I dont believe a pure mechanical system can truly self manage. I believe that in the case of many of these robots, a little human intervetion and direction could improve the results drasticaly.
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Old 2008-11-02, 06:30 PM   #4 (permalink)
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Ken
> discretionary EA's
aka 'semi-auto' robots
The EA follows the entry rules & places orders during the permitted hours
The user can then cancel the order early if it turns nasty, or widen TP if there's room to run
Has many advantages to the manual trader, e.g. consistently precise entries, gets you over the yips if you've had a bad previous day/week/month, etc
See here for just one example http://www.selectfx.net/sa_mcl_eurjpy_100.htm
And this similar but more sophisticated fully-auto EA http://www.selectfx.net/a_mcl_eurjpy_100.htm
has an extern that will switch it to semi-auto mode.
Future semi-autos from SelectFX will trade off support & resistance lines manually placed on the chart & then go on to automatically manage the stops of the resulting orders
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Old 2008-11-04, 07:00 AM   #5 (permalink)
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> Diversification may preserve wealth, but concentration builds wealth

Well even Warren has been <Buffeted> this last week or so !

I use similar systems on the three main Fx sessions, just on different pairs (AUDJPY then EURJPY then USDCAD)
Additionally I have separate systems on GBPUSD during the European session
I see this as basic taking of opportunity - I'm not adding to any one risk...
Any one system can go through a bad spell, so I think it makes sense to spread the load, especially around the 24/7 Fx market
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Old 2008-11-04, 05:38 PM   #6 (permalink)
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BB,

Thats not quite what I meant by wide diversification. Thats actually pretty focused. I think what Buffet was refering to is the textbook idea of diversification. A broad base of investments, so in the end, the good balances the bad. I've seen a few people talk about putting together a portfolio of robots like this. So in the end the group balances out.

I'm working with the Demark Lines bot this week. Using it in a directional manner, on different time frames, manually adjusting the targets and stops on individual trades. Still learning the intricacies of MT4, and these robots. Its only been a few weeks.

But even so, a robot like the Demark is a big benefit to me. With a little direction bias, it gets me into trades while I'm doing something else, then I can just check on them and manage the results.

Ken
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