My story as a beginner forex trader - Is it even possible to make a steady profit with EA ?
This is my opinion and advice ... I will start with a question.
How many years does it take to become a good doctor (or engineer, or whatever the profession may be)?
The answer — a long time! And it's not only time, but also effort and dedication, to build up the skills and gain the necessary knowledge. The same applies here. There may be a few that "get lucky", but for the most part, it takes time and effort.
There is a reason why most traders fail, because they let "greed" guide them instead of common sense. In almost any profession, we embark on a long journey to become a good professional by building on knowledge and skill, but when it comes to trading, most just think of getting rich quickly and without effort.
Many EAs you will find are just plain useless, but there is a fair amount that are useful. However, they don't just work out of the box. They are tools, just like a chisel for a carpenter, or a scalpel for a surgeon, or a brush for a painter. Just having good tools does not make you a good trader. A master carpenter and his apprentice both use the same tools, but their resulting work quality is completely different to each other.
Using other peoples EAs is acceptable, but not ideal. The best EAs are the ones you code yourself, with your own strategy and knowledge, where you fully understand things and can adapt them as you wish.
This is my opinion and advice ... I will start with a question.
How many years does it take to become a good doctor (or engineer, or whatever the profession may be)?
The answer — a long time! And it's not only time, but also effort and dedication, to build up the skills and gain the necessary knowledge. The same applies here. There may be a few that "get lucky", but for the most part, it takes time and effort.
There is a reason why most traders fail, because they let "greed" guide them instead of common sense. In almost any profession, we embark on a long journey to become a good professional by building on knowledge and skill, but when it comes to trading, most just think of getting rich quickly and without effort.
Many EAs you will find are just plain useless, but there is a fair amount that are useful. However, they don't just work out of the box. They are tools, just like a chisel for a carpenter, or a scalpel for a surgeon, or a brush for a painter. Just having good tools does not make you a good trader. A master carpenter and his apprentice both use the same tools, but their resulting work quality is completely different to each other.
Using other peoples EAs is acceptable, but not ideal. The best EAs are the ones you code yourself, with your own strategy and knowledge, where you fully understand things and can adapt them as you wish.
That's the most perfect answer
Hi,
I'm a beginner trader from Norway looking for advice. I started trading XAUUSD manually two months ago with $1100 using TradingView connected to a Pepperstone account.
The first month was a disaster, and I lost 35% of my account in a few trades because I didn't set stop-losses. My second month has been much better, and I'm almost back to where I started ($1010).
Since midsummer, I've listened to the "Tradingnut" podcast and heard several traders claim to make a good living trading the forex markets, but only a few of them used expert advisors (EAs) or robots to assist them.
I downloaded MetaTrader 5 a couple of weeks ago and found the "Market" where you can download EAs and set them up for backtesting. According to the reviews, some of these EAs make big returns, but I can't replicate those results in my backtesting.
So far, every backtesting session using free EAs and demo bots has ended with my demo account blowing up or with a loss. I'm starting to wonder if something is wrong with my backtesting (or backtest setups) or if this is just a scam.
My knowledge level is still very low when it comes to backtesting, and I don't know how to use the optimization mode to create a better EA setup.
Where can I find setup files for different EAs? It would be convenient to load a setup file and rerun the backtest to validate the success rate of the bot, but so far, I haven't seen a single review of a bot (that claims it works) with a link to its EA setup file.
I appreciate any replies and advice.
Regards,
Newbie Trader, Norway
I highly recommend you thoroughly digesting the content available on the NNFX (No Nonsense Forex) website, with a primary focus on the valuable insights related to Trading Psychology.
How many years does it take to become a good doctor (or engineer, or whatever the profession may be)?
+1
Hi,
I'm a beginner trader from Norway looking for advice. I started trading XAUUSD manually two months ago with $1100 using TradingView connected to a Pepperstone account.
The first month was a disaster, and I lost 35% of my account in a few trades because I didn't set stop-losses. My second month has been much better, and I'm almost back to where I started ($1010).
Since midsummer, I've listened to the "Tradingnut" podcast and heard several traders claim to make a good living trading the forex markets, but only a few of them used expert advisors (EAs) or robots to assist them.
I downloaded MetaTrader 5 a couple of weeks ago and found the "Market" where you can download EAs and set them up for backtesting. According to the reviews, some of these EAs make big returns, but I can't replicate those results in my backtesting.
So far, every backtesting session using free EAs and demo bots has ended with my demo account blowing up or with a loss. I'm starting to wonder if something is wrong with my backtesting (or backtest setups) or if this is just a scam.
My knowledge level is still very low when it comes to backtesting, and I don't know how to use the optimization mode to create a better EA setup.
Where can I find setup files for different EAs? It would be convenient to load a setup file and rerun the backtest to validate the success rate of the bot, but so far, I haven't seen a single review of a bot (that claims it works) with a link to its EA setup file.
I appreciate any replies and advice.
Regards,
Newbie Trader, Norway
The MT5's tester sort of turns the market into a convenience rather than the shop with the solutions . What do i mean :
Its decent enough that you can search for your own strategy and when you find it search for the proper management and when you find it pack it and use it or sell it (like sellers do and it does not mean that if a seller finds a strategy that happens to be profitable currently they intend to scam you or smth).
Learning to optimize EAs (even if you constantly fail) will give you an overview of how the holy grails "come and go" . For instance after a session that decimates most of your free time you will start playing around asking questions like "What if i change the start date of the test?" "What if i widen the SL" etc.
But do that , become familiar with equity and balance curves and what they probably mean .
The only bottleneck is coding , and since you did not mention it unfortunately that is the convenience the market offers . The "ideas" are already coded .
Also caution on which type of price is used during your backtests.https://www.mql5.com/en/docs/runtime/testing#real_ticks
(regarding the absence of set files on market EAs many vendors elect to offer these set files in exchange for joining a private telegram group etc)
PS: Here is an example of testing and evaluating equity curves etc :
- www.mql5.com
This is my opinion and advice ... I will start with a question.
How many years does it take to become a good doctor (or engineer, or whatever the profession may be)?
The answer — a long time! And it's not only time, but also effort and dedication, to build up the skills and gain the necessary knowledge. The same applies here. There may be a few that "get lucky", but for the most part, it takes time and effort.
There is a reason why most traders fail, because they let "greed" guide them instead of common sense. In almost any profession, we embark on a long journey to become a good professional by building on knowledge and skill, but when it comes to trading, most just think of getting rich quickly and without effort.
Many EAs you will find are just plain useless, but there is a fair amount that are useful. However, they don't just work out of the box. They are tools, just like a chisel for a carpenter, or a scalpel for a surgeon, or a brush for a painter. Just having good tools does not make you a good trader. A master carpenter and his apprentice both use the same tools, but their resulting work quality is completely different to each other.
Using other peoples EAs is acceptable, but not ideal. The best EAs are the ones you code yourself, with your own strategy and knowledge, where you fully understand things and can adapt them as you wish.
Your insights are deeply appreciated, and I wholeheartedly agree with your emphasis on the time, effort, and dedication required to become a proficient trader or any other professional. The path to mastery is indeed a long and arduous one, demanding unwavering commitment and a willingness to embrace continuous learning.
Your analogy of EAs as tools is particularly apt. Just as a novice carpenter's handling of a chisel may yield less refined results compared to a seasoned craftsman, so too does the effectiveness of an EA depend on the trader's understanding and application of its underlying principles.
Your assertion that the most effective EAs are those crafted by the trader themselves resonates strongly. By developing their own strategies and intimately understanding the intricacies of their EAs, traders empower themselves with the ability to adapt and refine their approach as market conditions evolve.
While utilizing others' EAs may offer a semblance of convenience, it ultimately hinders the trader's growth and understanding of the underlying mechanisms at play. True mastery arises from the pursuit of knowledge and the ability to independently apply it to real-world scenarios.
I commend your dedication to fostering a culture of continuous learning and self-improvement within the trading community. Your guidance serves as a valuable reminder that the path to success in trading lies not in shortcuts or quick fixes, but rather in unwavering commitment to personal growth and the pursuit of knowledge.
I highly recommend you thoroughly digesting the content available on the NNFX (No Nonsense Forex) website, with a primary focus on the valuable insights related to Trading Psychology.
I extend my sincere gratitude for your insightful recommendation to delve into the NNFX (No Nonsense Forex) website, particularly the sections dedicated to Trading Psychology. I am deeply appreciative of your willingness to share this valuable resource, as it undoubtedly holds the potential to significantly enhance my understanding of the intricate world of forex trading.
I have already begun exploring the NNFX website and have found the content to be both informative and engaging. The emphasis on Trading Psychology aligns perfectly with my belief that mastering the mental aspects of trading is crucial for achieving sustainable success.
I am particularly intrigued by the website's exploration of topics such as emotional control, discipline, and risk management, all of which are essential components of a successful trading strategy. I believe that by thoroughly digesting the NNFX content, I will gain a deeper understanding of these critical concepts and be better equipped to navigate the challenges and opportunities that the forex market presents.
+1
The MT5's tester sort of turns the market into a convenience rather than the shop with the solutions . What do i mean :
Its decent enough that you can search for your own strategy and when you find it search for the proper management and when you find it pack it and use it or sell it (like sellers do and it does not mean that if a seller finds a strategy that happens to be profitable currently they intend to scam you or smth).
Learning to optimize EAs (even if you constantly fail) will give you an overview of how the holy grails "come and go" . For instance after a session that decimates most of your free time you will start playing around asking questions like "What if i change the start date of the test?" "What if i widen the SL" etc.
But do that , become familiar with equity and balance curves and what they probably mean .
The only bottleneck is coding , and since you did not mention it unfortunately that is the convenience the market offers . The "ideas" are already coded .
Also caution on which type of price is used during your backtests.https://www.mql5.com/en/docs/runtime/testing#real_ticks
(regarding the absence of set files on market EAs many vendors elect to offer these set files in exchange for joining a private telegram group etc)
PS: Here is an example of testing and evaluating equity curves etc :
I appreciate you sharing your insights on using the MT5 tester and optimizing EAs. Your observations about the tester turning the market into a convenience rather than a shop with solutions are quite accurate. It's true that the tester allows us to experiment with different strategies and parameter settings in a controlled environment, without risking real capital.
The analogy of the holy grails "coming and going" is also fitting. As you mentioned, strategies that perform well in one period may not hold up in another. This highlights the importance of continuous evaluation and adaptation in the ever-changing forex market.
Your advice to familiarize ourselves with equity and balance curves is sound. These metrics provide valuable insights into the risk-return profile of a strategy and can help us identify potential red flags.
Regarding the coding bottleneck you mentioned, I agree that it's a significant challenge for many traders. While there are numerous pre-coded EAs available, developing a deep understanding of coding can empower us to create and customize our own strategies.
I appreciate the caution you provided regarding the type of price used during backtests. It's crucial to ensure that the backtest is conducted using the same type of price data that the EA will be trading on in real time.
Finally, the example you provided of testing and evaluating equity curves is very helpful. It demonstrates how to visualize and interpret these metrics, which are essential for making informed trading decisions.
I found your insights to be insightful and practical. Thank you for sharing your knowledge and experience. You got a new subscriber on your Youtube channel.
Cheers,
In my opinion, your chance of becoming a good trader after working for many years is lower than your chance of becoming a good doctor in the same period of time.
Some may object ... but the FX market has a lot features in common with a gambling table ... be a scalper, day trader, swing or trend trader ... it doesn't matter at all.
As a trader ... in FX or in any other market, from a technical point of view, all you can do is to look for price patterns ... and pray that past realizations will occur in the future.
But it never happens like that, not that simple.
As someone who has been actively trading in various markets for many years, my advice to you is to become an investor in the stock market.
This way, you're more likely to find yourself making more money in the long run.
... and you can be a good doctor in the remaining time.
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Hi,
I'm a beginner trader from Norway looking for advice. I started trading XAUUSD manually two months ago with $1100 using TradingView connected to a Pepperstone account.
The first month was a disaster, and I lost 35% of my account in a few trades because I didn't set stop-losses. My second month has been much better, and I'm almost back to where I started ($1010).
Since midsummer, I've listened to the "Tradingnut" podcast and heard several traders claim to make a good living trading the forex markets, but only a few of them used expert advisors (EAs) or robots to assist them.
I downloaded MetaTrader 5 a couple of weeks ago and found the "Market" where you can download EAs and set them up for backtesting. According to the reviews, some of these EAs make big returns, but I can't replicate those results in my backtesting.
So far, every backtesting session using free EAs and demo bots has ended with my demo account blowing up or with a loss. I'm starting to wonder if something is wrong with my backtesting (or backtest setups) or if this is just a scam.
My knowledge level is still very low when it comes to backtesting, and I don't know how to use the optimization mode to create a better EA setup.
Where can I find setup files for different EAs? It would be convenient to load a setup file and rerun the backtest to validate the success rate of the bot, but so far, I haven't seen a single review of a bot (that claims it works) with a link to its EA setup file.
I appreciate any replies and advice.
Regards,
Newbie Trader, Norway