Why backtesting doesn't work?
A pretty good and short(wheew) article about the pitfalls of backtesting in general.
The PG took a bad hit last nite and this morning on my settings
Allright! You da man!
New Feature Idea
Well, it looks like we all took a hit on the EA today because of the non-Farm report.
I was trying to think of a way to reduce the loss when NEWS times hits.
Here is a couple ideas to add to the code if possible:
A feature similar to a trailing stop except what it does is must move the stoploss to break even (or 1 pip profit) after a predetermined time. In other words, have a feature that says, when profit is (X- set amount of Pips, like 20), then move the stoploss to break even (or 1 pip). This way, when news hits, it won't just destroy all profits and hit your stoploss in like 5 minutes.
This idea might be a little more difficult do accomplish but would even be better than the first. I don't know if this can be done, but what about a feature that at a predetermined time each day (like say, 8-9 AM EST or 13:00 to 14:00 GMT) the EA checks to see if the profits are dropping at a predetermined rate (say like 10-15 pips) and if it is going against your position, it will automatically close out of the position. A feature that checks every minute and if the price has dropped X number of pips against you, close position.
I hope I am able to explain what I mean. If you have any questions, let me know.
Obsolete Setting Explaination
Many have wonder why I am so excited about the New Obsolete Feature in the EA. Here is why. Let me explain how this feature works. In my opinion, it should be stardard as a preset.
Obsolete Setting does not close the trade after 30M, here is what it accually does (which is VERY COOL).
Say you are in a position LONG on the EURUSD and you are up 30 pips (with a take profit of 40 and stoploss of 30). Sudden, the conditions of the market change and you start to lose your profits. What Obsolete settings does it check every 30M (or 15 or 60 or whatever you specify) to see if the conditions are still there for you to stay in your long position. If after 30 minutes it says, "Conditions have now changed, you should be in a short position now!" it immediately CLOSES your LONG position wherever you have it (say at this point you are only up now 5 pips) and opens a SHORT position in the opposite direction!!! That way, you do no lose ALL your profits and you don't have to take a stoploss either. Thus, you just made 5 pips on the trade and did not lose 30 that you probably would have. Plus, since you are now trading in the opposite directiion, there is a good chance you can capitalize on changing market rather then just losing money.
I hope this explains it clearly.
For me, the problem today with the EA was many bad entries. A simple way to prevent this on volatile days would be to create a true/false option with a variable input which says to the EA: Take trade only if conditions are met plus X pips. So when we expect volatility we could set to true and put in a high value like 20. This would have filtered alot of false entry signals today.
I would read this with pleasure. could u send adress of codersguru profit_protector thread.
This is the article I told you about:
Now, That's just darn right discouraging!!! But sure explains allot.
Does anyone else think, if true, this wreaks of racketeering??, but then, how would you prove it?
I made a pdf to keep, and attached a copy.
Here are some other links:
Was anyone trading back in the late 70's early 80's in the commodities and futures markets?
Back then their was a similar wild, wild west environment that was constantly stated it could not be regulate and the broker brought under control because of the world wide nature of the commodities markets.
Back then I open an account on a one page sheet I faxed in, and mailed the broker 1000.00 cash. (it was really different back then.)
Now I have to fill out 50 page legal docs, that has to be counter signed by a JOP/or some equal legal eagle, and the information that has to be provided is more that my mother knows about me.
I looks to me, these brokers have learned nothing, sooner rather than later the regulator boards around the world we come down on there's people like a ton of bricks and the only people that will get hurt, once aging, is the small trader, who will be squeezed out. Remember day-trading stocks, now you need 25k min.
Thous who say that forex can't be regulated, I say history says different.
My only question is, when will this will happen?
I know this is all a little off subject, but the details really matter.
Now back to our program, go get 'em guys!!