Is it good enough just to have the Best EA?
This is where most who attempt to trade online make the biggest mistake.
If we assume that having the best and most optimistic backtested EA means we are good traders this is the basis for the mistake.
Having a hammer does not make a person a carpenter.
So why in the world should having a well tested EA make the user a good trader....The answer is obviously because the User of the EA believes it does.
But believing something does not make it so. Dont get it wrong belief is an essential part of everything we do on the planet but we have to use our beliefs correctly. We cannot look at a plumber with a hammer in hand and confuse such a person with a carpenter.
It is the use of the EA that is important. Most people assume that an EA must be permanently in the market or they will miss opportunities this is where the MT5 analysis which shows the most profitable time of the EAS comes in handy. However we still have to use that MT5 analysis carefully as it does not show profitability by entry dates or times but closing dates and times.
So a trader must do their own homework to decide when is the best entry dates and times for the specific strategy they are using.
I am introducing something else that is still unheard of, it is the idea that you can use the revenue curve to decide on the timing of trade entry. Assuming the accuracy of the tick data from your broker you should be able to use such info as it is usually more reliable than the charts.
I agreed, good thoughts
I have to say that I like using an EA,
takes some of the emotion out of trading.
however it is true, you need to do your homework. just running an EA is a good way to wear down your funds.
I like that I can run my strategies with an EA, no emotion, it is what it is, will do what it is told to do with the information it has.
then I look at the results, look at where it failed on the charts. reassess the strategy, look at ways I can limit drawdown. if it was just a bad day for my strategy.
not every day will be the best trading day, I just hope I can limit large losses gain more pips then I give back.
Joe
I have to say that I like using an EA,
takes some of the emotion out of trading.
however it is true, you need to do your homework. just running an EA is a good way to wear down your funds.
I like that I can run my strategies with an EA, no emotion, it is what it is, will do what it is told to do with the information it has.
then I look at the results, look at where it failed on the charts. reassess the strategy, look at ways I can limit drawdown. if it was just a bad day for my strategy.
not every day will be the best trading day, I just hope I can limit large losses gain more pips then I give back.
Joe
To eliminate large losses we can do 2 things:
1)Widen our Timeframe meaning we could trade on daily timeframe instead of M15 or H1
2)We can reduce our pips target that way we are out before too long so we may take about 100-150 pips instead of going for the 200-300 volume.
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This is where most who attempt to trade online make the biggest mistake.
If we assume that having the best and most optimistic backtested EA means we are good traders this is the basis for the mistake.
Having a hammer does not make a person a carpenter.
So why in the world should having a well tested EA make the user a good trader....The answer is obviously because the User of the EA believes it does.
But believing something does not make it so. Dont get it wrong belief is an essential part of everything we do on the planet but we have to use our beliefs correctly. We cannot look at a plumber with a hammer in hand and confuse such a person with a carpenter.
It is the use of the EA that is important. Most people assume that an EA must be permanently in the market or they will miss opportunities this is where the MT5 analysis which shows the most profitable time of the EAS comes in handy. However we still have to use that MT5 analysis carefully as it does not show profitability by entry dates or times but closing dates and times.
So a trader must do their own homework to decide when is the best entry dates and times for the specific strategy they are using.
I am introducing something else that is still unheard of, it is the idea that you can use the revenue curve to decide on the timing of trade entry. Assuming the accuracy of the tick data from your broker you should be able to use such info as it is usually more reliable than the charts.