What are the steps to find my trading system?

F.Black
293
F.Black  
Hi given that this forum is called trading systems, I would like to ask you for help on how I look for my profitable trading system that I can later automate

So far I only know about the "Observation" look and see what pattern is repeated and then do "backtesting" but beyond that or some other method to carry out that search in an adequate way, I do not know what book would you recommend or if it is so easy to write it down in a few steps.

Thank you very much in advance.
Sergey Golubev
Moderator
119015
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

GENERAL EA

Sergey Golubev, 2020.10.01 19:26

It depends on the trading system.
Because every EA is the trading system tested/traded by the user/coder/trader/etc.
Of course, there are some complex EAs which were created based on some complex raw idea.
But many (may be - most of) EAs are the former manual trading system traded by someone (means: developed idea).

So, everything depends on the trading system.

Sergey Golubev
Moderator
119015
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Can't Find Any Profitable EA on MQL5 in past 5 years.

Sergey Golubev, 2019.04.14 08:04

I have beed in forex since last century so I better know :) what's scam and how to create profitable EAs from the profitable manual trading system (and I am not a coder):

  • because some people were/are creating the manual trading systems, traded this system manually on demo for few months/weeks and on real live accounts for few months/weeks with several brokers, and after that - they defined the rules for this system, and finally - they asked for coder (they paid to the coder, or coder created EA for free) to code EA for them according to their profitable manual trading system (profitable for them) - which they traded on demo and/or live for few months with proven results;
  • and the other people are just waiting when all the job will be finished to ask: "Can you give me your profitable EA? Because I do not want to spend my money and my time to create the system and to ask the coder after that."
I am talking about public systems.

Sergey Golubev
Moderator
119015
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Can't Find Any Profitable EA on MQL5 in past 5 years.

Sergey Golubev, 2019.04.14 08:26

There are Raw Ideas. It is the ideas about the following: attach indicators to the chart and see that it may be profitable.

There are Elaborated/Proven Ideas. It is when someone was trading this indicators' setup during the several days/or weeks/or months on demo account (and, in some cases - on real live account). I am not talking abouty backtesting. Raw idea became to be a Elaborated Idea by trading (at least - on demo).
Why to trade? To define the trading rules, and to know: when the system will let you win, and when you will lose by using this system (and why).

  • Some people prefer to do it in public threads (raw idea - next is indicators uploaded to the thread - next: trading with one broker - trading with the other broker - next: elaborate the rules of the system - ask for coders), receive EA based on manual trading system (some coders may code for free using the public threads: some coders will never code for free ... up to them), optimize the settings, find the settings for some timeframes and more. And some people prefer to post/iupload everything on their public threads.
  • The other people are doing in privately (with no one can see it). In this case - he believes in his results and in his words such as "it is profitable EA, please use it", but we do not believe in his results and do not trust hin in general.
  • And the other people do not do anything. They just ask: "did you finish your great job here? did you spend your money to find the settings, did you spend your time to trade this manuall system on demo or live, right? So, for now - you should give this profitable EA to me and explain all your system to me (for free of course!".

Dua Yong Rew
5767
Dua Yong Rew  

I scan actual charts on reversal candlesticks pattern and automated it.

Look on back testing chart and look for candlestick patter that should make the trade exit better or enter better and repeat.