Why martingale EAs look profitable… until they aren’t (especially on gold) - page 11
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I didn't find it useful for my type of trading back then.
I could probably find some way to make it work now, but why chase another strategy when I already have one that works.
I fully understand the opposition, but not the way people here put other trading strategies on pedestals.
I have traded most of them.
Scalping: Way to much action for my personality, even when I made my own EAs with this concept I was sitting on nails when it traded. Can have many losing trades before it turns too.
Day trading: Need a lot of time to read the market and get information that is needed for the daily trading. Many hours in front of the screen when trading too.
News trading: To many variables to make it work, broker, spreads, lot size, to fast and big moves that can go against you.
Session start: This can be ok if you can stop for the day after the session start is over. Many people cant.
Price action: You need fast reactions to trade price action in the futures market, to read and understand a footprint chart isn't for beginners. To much spoofing going on, which makes it harder to read.
Using timeless charts: Renko and range-bars is concepts I have never found useful in my trading as I said above.
Trend trading: Usually when you see the trend, its already halfway finished or even completely over.
Range trading: Hard to read and you don't know when price will break out of the range.
Breakout trading: I don't know why, but I have often not been able to find a breakout without it reversing on me. Maybe I strive for to long durations in trading.
Mean reversion: This I believe in more, specially if you have futures market information at your hands. This is for some reason easier for me to read and understand.
Swing trading: This I believe in too, just not the work behind it, You need to have full fundamental understanding to build your positions over weeks and even months,
Grid trading: This is something I believe in, build your positions over time and collect your money. Need a good trading concept to stand on to make it work though.
Hedge trading: Real hedge between different markets work to lower risks, doing it in the same market or the same currency pair will not.
Martingale: The pure form of martingale is shit, to double up your next trade if the last one was a bust. A streak with losing trades will wipe your account sooner or later.
I have probably missed some strategies here, but everybody have their preferred trading style that either suites their personality or just simply makes them money.
The bottom line is this.
Its always easier to read something with 20/20 hindsight vision, but to catch it when it occurs and make money off of it is something completely different.
This is where coding your own indicators and EAs makes it way easier to find the right strategy.
good summary hahaha this made my day lol :)
I don’t believe you’ll find any EAs with phenomenal results when tested using real ticks and 100% quality historical data. Show me at least one truly phenomenal backtest—with excellent results—based on 100% quality history and real ticks.
Why do so many EAs start losing money and eventually fail after a certain period? I think the answer is quite obvious: it’s often not the strategy itself, but the fact that the EA has been over-optimized. Eventually, those optimized settings are no longer relevant to the market, and performance deteriorates.
You are spot on. Sadly to many fall for the tricks the sellers here on mql5 use, or anywhere else for that matter.
What I feel is strange is that people here on mql5 seem to think that an EA is bad if it doesn't give you at least 2000% or more in return per year, not even the best hedge funds do that.
The hedge fund that is considered the best is Renaissance Technologies Medallion Fund, which gave around 60% a year in return. (between 1988 and 2018 though, which is very impressive)
Don't get me started on the imaginary backtests too. You will never become a billionaire with an EA, even if the backtest show it.
The broker will cap your leverage when your account is becoming to big.
You will start to have problems getting your orders through when the lot size is growing.
Other players, brokers and banks in the big forex pool will notice your big orders and play against them sooner or later.
EAs with small pip gains will fail in the real world, slippage and spreads will eat you up sooner or later.
and so on...
Buffett said it best, no one what's to get rich slowly.
You are spot on. Sadly to many fall for the tricks the sellers here on mql5 use, or anywhere else for that matter.
It’s quite simple to check any EA on the Marketplace: download all the ones that interest you, but only run tests on those that haven’t been updated for at least a few months. That period serves as a genuine “out-of-sample” test.
It’s quite simple to check any EA on the Marketplace: download all the ones that interest you, but only run tests on those that haven’t been updated for at least a few months. That period serves as a genuine “out-of-sample” test.
It’s quite simple to check any EA on the Marketplace: download all the ones that interest you, but only run tests on those that haven’t been updated for at least a few months. That period serves as a genuine “out-of-sample” test.
Yes, you're right that is the best way to check non updated EAs
But there are those that have been updated and have deleted the old bad trades too.
Or the ones that keep adding funds when in drawdown and withdraw it after, how many here have the funds to do that.
And how do you backtest it if the seller haven't added the function in the EA. (Yes you can add the deposit and withdraw function in an EA for backtesting purposes)
Sadly its easy to fool people here.
And how do you backtest it if the seller haven't added the function in the EA. (Yes you can add the deposit and withdraw function in an EA for backtesting purposes)
Spot on. To make things even worse some deposit and withdraw money on the live signal account and many people still don't get it.
yes, and on a 2k trading account they add 15k to gain 1k a year.
People copying their signals should just give their boss the finger and quit their dayjob, because they just made it... 🤣