Simple Explanation of Reactive Corrective - page 3

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autofx:
I'm not cheating on my forum, nah. I own/admin that forum, so can I cheat on myself?

This is not true.

UNLESS you lump the logic used to implement very simple trading tactics under Artificial Intelligence (AI), which I do not.

However, Expert Advisors (EAs) could be lumped under "Expert Systems", which to some is a form of Artificial Intelligence...

It's all just terminology.

What I'm referring to when I say AI and Genetic Algorithms is a very exotic type of software that is usually overkill and is trying to predict the future, or is being sold as something that can predict the future.

There are many ways to think about trading. I come against the school that says, "You have to be a very wise analyst who understands the technical, fundamental and psychological aspects of a market to trade it profitably." I say, "Bull hockey, I have simple software scripts that can trade profitably, and they are extremely simple...they implement effective trading tactics, don't get tired, are accurate, and react very quickly. They don't try to predict what will happen next, and they don't need to."

It seems this kind of talk gets some folks very riled up. Why? Because they have been making good money collecting commissions and fees from people whom they've convinced they are gurus.

autofx regarding, AI, expert systems, and simple logic scripts. i have to agree, that they are 3 different things. i like the idea of a simple logic script. to trade. this system ur discussing here is perfectly simple. thank u for sharing here. im learning mql4, and this looks like a good system to use on my first ea. autofx do u have EAs available for the members of ur forum?

 
elitecamper:
autofx do u have EAs available for the members of ur forum?

Do I ever!

 

Autofx there is a very simular system to this one on this forum, it is simular to it is not the same. or u might disagree and catagorize it completely different. it is different. but basicly on ur system ur buying low and selling high when market is ranging and then when it trends u buy into the trend and cut ur biggest losers from the ranging session. now the other system i saw trades the ranging within the trend. it takes both parts of ur system and infuses them into one. i think this has the possibility of cuting down on losses. again no TP and no SL here is the thread from minime where i originaly read about it https://www.mql5.com/en/forum/general

 

elitecamper, I'm sure there are many traders who trade some form of this idea. Dr. Zogg (seen on other forums) says he has a system very similar to what I described above. I continue to try to gather as much trading wisdom as I can. I have some of my own to share now, after a few years of trying many things and letting different systems run on my hard-earned money.

 
zupcon:
Clearly anyone who thinks that you can buy a system that automatically develops profitable strategies for 60K needs their heads examing LOL, then again, people think you can buy an EA from eBay for 80 bucks, go figure

I hope people are getting wiser. There are so many fx forums now that anyone who does their homework should be able to get a feel for what might work and what doesn't. It does require a big effort to do all the research though.

 

hi

autofx:
To detect strong directional action, use one simple indicator. Trade

in direction of indicator when strong directional action is seen. Take

no more than 3 trades in indicated direction, close any other

profitable trades that were opened during sideways trading. Close

winning trades opportunistically - watch for 10 pips in the good

during trends, use no stop nor take-profit orders. Take new longs on

5 to 10 pip pullbacks when the trend is in force, but do not exceed

three trades in that direction. If all profitable trades are closed in

strong direction, open one new one. Don't open another unless pullback

is seen with trend still in force.

When the indicator shows "neutral", trade on pure price action --

short on rises, long on dips. This is done per predetermined price

action intervals, using last-trade-level anchors as reference

points. Close winning trades opportunistically - watch for 3 to 5 pips

in the good during sideways action, use no stop nor take-profit

orders.

LOGIC and ACCOUNTING are the big keys. You have to keep track of how

much in profits you've booked in relation to the biggest losing trade,

and close that biggest loser when your recently closed winners have

exceed it by a certain amount (I like one-third of one percent of the

account).

This method is hard to trade manually, software is far superior for

executing it in the best way, because computers do not need to sleep,

react quickly, and are accurate. The logic is simple, but the nuances

are devilish to those who aren't accustomed to thinking

logically. Most software weenies are busy chasing "artificial

intelligence" and "genetic algorithms"...poor saps...simple but clever

tactics are much better.

You will not get rich quick with this type of trading, but steady

equity gains are possible, and slowly increasing lots in proportion to

gains has tremendous power. I like to trade with brokers who provide

very small lot size granularity, like nanolot (penny-per-pip) on mini

accounts and microlot (10-pennies-per-pip) on standard accounts, and

who also allow hedging. No hedging, no trading this way.

Of course, you could trade two accounts on the same currency pair, one

account for long trades and the other for short trades. This would

make life more complicated, but would be feasible, whether trading

manually or with software.

that's right it's hard to follow your system manually ..you've to watch your monitor all day long ....what happen into your account when suddenly there's a big news occured ...you can get a big floating loss if market against you..I think it's better to add SL in every position ...just my suggest ...

anyway , thanks for your good system

===================

Forex Indicators Collection

 

I don't agree about SLs.

 

Just a 5-period EMA on H1 or H4 charts.

Watch for the current value being 10 pips or so away from the value of 2 bars prior.

I assume your 5-period EMA is applied to close?

 
autofx:
I assume your 5-period EMA is applied to close?

It so happens that it is applied to the close, yes.

 

AutoFX:

Not sure if you're still monitoring this forum, but I had a couple questions if that's OK:

1. I noticed on the statement posted above that some orders are 10x the risk. May I ask what the rule/logic is for determining that?

2. How much DrawDown does the EA experience?

I don't know if you're even still trading this method, but I thought I'd ask.

Thanks!

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