The top tenets of mechanical trading - page 11

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Nice list of rules

Have to check them soon again! Some of them are really for real, worth to print and post it :-)

A quastion to point 11

"The only EA's that will be profitable are the ones that are cleverly designed to out-fox the brokers and other insideous market forces by resorting to tricks, gimmicks, and smoke & mirrors tactics."

Which EA are the best ones? Are these all EAs?

Alpari UK

Broco

CMS

Dukascopy

Forex.com

FXCM

FXDD

FXOpen

FXPro

GoMarkets

Instaforex

MB Trading

MIG

NordMarkets

One Financial

Tadawul

I heard something about Buru. Is this an EA or a trading software?

Which one should I use in future?

Do you have more rules like those before?

Thanks a lot for your help! Looking forward to have some good advices to boost my trading.

Cheers

 
rocks1ar:
Hey guys, im new here so hello one and all.

Im sorry my first thread is a negative one but I just want to know why you guys are always looking for an EA that has consistent profits month on month, I have never come across a reliable EA that makes even 10% a month, also the only ones that come close to working, you seem to need a minimum of $10'000 to start with.

I would love you guys to prove me wrong, but don't you think that if anyone did find such an EA it would spread across the internet so fast that everyone would be using it making it pointless.

sorry rant over

as you were

The main point of using an EA, beside it can save you screen time, is to eliminate the chance to make emotional decisions which most human being do. If an EA is not profitable, it's not EA's fault, it's just the strategy is not profitable.

Another distinct advantage EA offers is the ability to back test. You can say something the result is off based on data, but it's still very much an advantage compared to manual testing.

 

Interesting system! Watch it

 
scottfx99:
Knowing when not to trade is as important as knowing what EA:s you should use and what to settings to use. In general, during high impact news, markets tend to be very volatile and unpredictable. This is when Expert Advisors tend to lose a lot of money. Avoiding to trade during these periods can help you to significantly improve your trading performance.

So, when should trading be avoided? I would like to highlight two particular reoccurring news events, the release of the US unemployment statistics (NFP) and the presentation of results from the Federal Open Market Committee (FOMC).

Non-Farm Payroll (NFP)

If there is an economic indicator that has a direct and powerful impact on the U.S. dollar so it is Non-Submitted Payroll, the U.S. unemployment figures. This important piece of the puzzle and try to analyze appreciated by the world's economists. News services such as Bloomberg news then collect these estimates, which are "market expectations". Is it so that the actual figures differ substantially from the expected result, we significantly changed the world currency pair, as many investors acting on economists' estimates.

What is NFP? Each month brings together U.S. Department of Labor data from 160 000 private employers and governmental organizations. These 160 000 employers equivalent to approximately 400 000 unique sites. Data excludes individuals who work in government, private households, non-profit organization and farmers, producing a total of individuals included in the NAP 80% of U.S. GDP.

NFP is usually presented at 8:30 a.m. EST on the first Friday of every month. It�s a good idea to shut off your Expert Advisors the day before and on the NFP day since markets tend to be very unpredictable.

FOMC

The Federal Open Market Committee (FOMC) is the monetary policymaking body of the Federal Reserve System. It is responsible for formulation of a monetary policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments. The FOMC in its current form was created by the Banking Act of 1935. The FOMC sets monetary policy by specifying the short-term objective for open market operations--purchases and sales of U.S. government and federal agency securities. Open market operations, the principal tool of monetary policy, affect the provision of reserves to depository institutions and, in turn, the cost and availability of money and credit in the U.S. economy. Currently, the objective is a target level for the federal funds rate (the rate that depository institutions charge on overnight sales of immediately available funds among themselves).

The release of the FOMC meeting statements is one of the strongest market movers. It is highly recommended not to trade a couple of days before and after these events. The remaining 2010 FOMC Meetings are scheduled on the following dates:

April 27-28

June 22-23

August 10

September 21

November 2-3

December 14

So to conclude, avoid trading during these days and also shut off your expert advisors on the first Friday of every month, and the day before.

These suggestions will not make you rich alone, but if you incorporate them in your current automated trading strategy, you should see a nice improvement in profitability over time.

Very well said! I would include other news too, but these are simply the ones you can not miss to avoid. This helps more than just saying to people that they should not invest in Forex if they are not machines (because I doubt anybody can meet the requirements stated by other members here). Forex should be affordable to everybody, especially in the kind of economy that is left nowadays, when you can not trust investment banks, banks or even governments to take care of your hard-earned money. It is not a crime to dream of a better life (or simply a safer future) by making money on Forex. If there is a way to do it without so much effort, I don't see what is the problem. Most people have other jobs to do. That said, I agree that people should make some effort to understand the rules of the game for their own good. Just not as a "do it or die" kind of thing.

 

The most EA's are good for low profit...

 

The above youtube video does not exist....

 
webstakes:
The above youtube video does not exist....

It happens when youtube removes it

 

The worse thing happening is the power of CBs - a bunch of morons that are along with politicians and bankers leading us over the edge - and we are like stupid lemmings running over the cliff following the "bright minds"

 

Well, CBs are a problem for any trading. But since the became political it is just getting worse. I don't think it will ever get better

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