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Question about EAs

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Luciano Ola
1007
Luciano Ola 2014.03.26 20:31 

I had this question before but the thread went off topic.

I back tested my EA against (by now) probably over 12 instruments, mostly currencies, my EA did well against most of them however on two instruments, Hang Seng and FTSE, my EA was hit pretty hard, my EA survived Hang Seng but the drawdown was too large for Hang Seng to sensibly be considered as an Instrument for the EA to trade on (despite the fact that the EA survived and recovered from a losing spree that spanned a year+), as for FTSE the strength of the movements (a movement of the a certain size did 3-4 times as much good/bad as it would have done on other instruments) and the ostensible arbitrary behavior of FTSE was too much for my EA to withstand.

From observing my EA actually interact with these markets I can honestly say that in each case the very nature of the markets themselves were incompatible with the EA (I'm not referring to the markets doing certain things, I mean actual attributes, such as the significance of FTSE movements in terms of loss and profit and the something quite peculiar about Hang Seng that I cannot quite but my finger on).

I was just wondering if the behavior of one market can be mimicked on any other market, that is to say, if an EA fails on one instruments it shall fail on them all.

I strongly believe that with FTSE my EA would do better on a weekly time frame but I cannot be sure as weekly backtests are not a function of MT4 and MT5 is incompatible with my EA.

So if an EA is defeated by on instrument will it be defeated by all instruments?

qjol
3243
qjol 2014.03.26 20:44  
Luciano Ola
1007
Luciano Ola 2014.03.26 21:29  
So is that a yes?
qjol
3243
qjol 2014.03.26 21:50  
people are studying market correlation for months > and you want it in one word
Luciano Ola
1007
Luciano Ola 2014.03.26 22:01  
qjol:
people are studying market correlation for months > and you want it in one word


In a general sense, if an EA fails on one currency will it fail on another, are you saying yes, no or it depends (research market correlation)?

SYED NAUFAL GADDAFI
1401
SYED NAUFAL GADDAFI 2014.03.26 22:10  
MetaNt:


In a general sense, if an EA fails on one currency will it fail on another, are you saying yes, no or it depends (research market correlation)?


It depends.
Luciano Ola
1007
Luciano Ola 2014.03.26 22:32  
deysmacro:

It depends.

I'm not talking about one market affecting another, I'm talking about a markets capacity to behave in a certain way.
qjol
3243
qjol 2014.03.26 22:49  

the answer in short:

investigate some of the currencies (a few majors a few crosses and a few exotics) some of the indices on a tick chart in two dates

the first date: May the 6th 2010 (called flash crash)

the second: Apr the 23rd 2013

and find out how and if markets are correlated

James Hodges
3216
James Hodges 2014.03.26 22:59  

"So if an EA is defeated by on instrument will it be defeated by all instruments?"

The answer is no.

Do your homework and study market correlation as suggested.

Having non-correlated pairs is a key part to surviving.

"In a general sense"?.. there is no such thing in forex.

If we had any general sense we wouldn't be here......LOL

SYED NAUFAL GADDAFI
1401
SYED NAUFAL GADDAFI 2014.03.26 23:06  
MetaNt:

I'm not talking about one market affecting another, I'm talking about a markets capacity to behave in a certain way.

If market is that simple, we all gonna be rich real quick.
Luciano Ola
1007
Luciano Ola 2014.03.26 23:34  

Allow me to rephrase my question because I think I am not putting the question across correctly.

Is any one market restricted in its capacity to behave in a certain way, or can any market behave like any other market, not necessarily on the same time, but at any time in the markets existence.

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