Phreaky Phorex Successful Manual EA Needs Coding Experts - page 14
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filtering out bad trades
I think he expects these kinds of situations because on an earlier post he mentioned he may get whipsawed 5 or 6 times in a row before he gets the move(s) he's looking for to make up for those losses.
That's why in a previous post I asked about trading the more volatile hours to avoid some of the sideways movement.
hope I am not putting words in your mouth Phorex Phreak.
Has anyone thought about testing this out on different time frames?
Maybe if a bullish cross occurs on lets say the 30 minute chart then we would only take bullish crosses on the 5 min chart...Just an untested thought, though
Hey Phreak, look at this chart. Would you sell? It crosses like you say to do. Do you have a way to filter out these bad trades?
Adam,
Your 5 min GBP/USD looks different than mine. I'm using TEMA2 set at 35 ema as in post #81, and VIDYA3 as corrected by by Michael post #101.
I think this is what Phorex Phreak is using as well.
Phorex Phreak, please correct me if I'm wrong.
Just did a manuel backtest for last 2 weeks, Wow! You are right Phorex, the money management is the key to this method.
Thank you for sharing. (see attached chart)
profit taking
If I opened up a long trade after a cross and the price shows 1.9064, I will pay 1.9066 to 1.9067...if the price reaches 1.9074, the market has moved 10 pips but if i exit then I will not make 10 pips...should I exit here or wait until my account actually grows by 10 pips?(This goes for the other targets, also)
I can see how this can make money
Looking at some charts i can see how this can make money...true there will be times when you will get whipsawed a lot, but the losses while they may be many seem to more than covered by the wins...
If you are someone who doesn't like to have losing trades(you are about accuracy)then this system may make you uncomfortable, but if you can hang around for the move that will eventually occur, you will make money!
I believe this methodology could be applied to any volatile market, not just forex.
survivor,
yes thats the same one i use.......
rick,
your absolutely correct about the little losses, if you cant handle a few little losses this business isnt for you.....money management applies to any market, well said rick.....
what changed my life was one little paragraph in a book called Market Wizards by Jack Schwager on page 166 at the bottom, the last question that he asks billionaire Mark minervini!!!!! here it is:
the author asks "How did you make the transition from failure to success?"
He answers: "My results were transformed when i understood that what counts isnt how often your right, but how much you profit on your winning trades versus how much you lose on your losing trades. On average, im only profitable about 50% of the time, but i make much more when im right than i lose when im wrong"
-keep on phreaking
profit taking
are profits taken when the price shown hits the target(s) or when your account has increased by that much...(spread factor)
trade the whipsaw too
On average, im only profitable about 50% of the time, but i make much more when im right than i lose when im wrong
m8, since the whipsaw for you system is great, what do you say if we implement martingale with it. let say we get whipsaw 15pips, we double the position(trailing stop is very improtant in this case).
eg.
long 0.1lot gbp/usd 1.9100
whipsawed 1.8985
long 0.2lot gbp/usd 1.8985
after track correction, market price jump up to 1.9120
profit for 1st position is 20pips x 0.1lot, profit for 2nd position is 35pips x 0.2lot
m8! you're making huge profit!!!! for false signal....hmmm...what do you say just close the position if it crossover again. think about his. i'm very experience on tweaking up lossing system, but i'm very experience as well to double up account in short term with a originally profitable system... muahahahahaha
p/s: this is currently meant for the manual trading system only, if you wanted to put the martingale in EA, that will have more to setup...
rick,
profits are taken in 10, 50 and 100 pip tp's, not in including spreads, so to make 10 pips the move has to go 13 pips!!! to cover the spread....
david,
i like your thinking, sounds very nice, but we must be careful of our capital reserve and leverage, so in that case our lots will have to start off a little smaller.......great idea, we shold implement it in the EA, what do you other traders think????.................keep on phreaking
I have been experimenting with cost averaging system. If you have enough capital, even cost averaging using random entry can profitable.
so in that case our lots will have to start off a little smaller
That's exactly what I think. I've briefly look at your system, most of the time the whipsaw wont get more than 30pips, am I right? Therefor, the capital preservation is still not affecting much, besides, we do close trade once the indicator crossover again. This is no longer blind betting, but its effective maximize profits money management. I belive this strategy works well if you dare to close the position with loss once the indicator crossover again(shows the previous cross is false signal).