if some EA is loosing money continuously , how to inverse that EA such that the loss convert into profit - page 4
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It's a recurring discussion, and all the ones who are thinking that a losing strategy will inevitably become a winning one are wrong (even on some optimal conditions is pointed by some contributors).
I do not disagree with this statement. I also have this belief from the start.
You can't reverse a losing EA, that doesn't work.
What I disagree with, is thinking that a losing strategy, if reversed, will inevitably still be a losing one. Maybe most strategies, but not all (my opinion).
At this point, I don't really think this is exactly what you meant (but very easy to be taken out of context). There is a very good point on this. Otherwise, everyone would be able to make money off a (reversed) simple moving average trading strategy.
Conclusion : a winning become a losing. It's a fact.
Conclusion : It all depend on the probability to reach SL & TP, we see we can't say anything with certitude about reversed buy losing into sell. With it this is probability ? Another debate.
This also explains why the two conclusions do not match. Conclusion #1 is always true in this case, but there is some "wiggle room" under conclusion #2. In the real world (with spreads), once the original trade reached SL, it does not always follow that the market will bounce back, move about 78 pips against the counter-trade, and hit that counter-trade's SL (in contrast with just an extra 2 pips movement in the other direction to hit counter-trade's TP). Yes, it happens, but not always.
Given the above example, one trade's TP is always within the range of the other's SL, so winning trades will always become losing ones when the strategy is reversed - one trade's SL will be hit first before the other's TP. But as for the losing trades on the original strategy, when reversed, it can be either profitable or still losing.
But using this setup, if one gets about 99% losing trades on a given strategy, would you discourage him from reversing this strategy out of sheer curiosity? OP did not give details, so we can just wonder.
So to answer the OP's original question:
Coming out with a profitable EA by simply reversing its strategy is improbable, but not impossible.
No guarantees, but there's no harm in trying. As to the "how", there is only one way of reversing the overall strategy of an EA. If you partially reverse some of its signals or filters, or introduce other changes, it's already a totally different strategy.
I do not disagree with this statement. I also have this belief from the start.
...Everyone can try all what he wants, that's not the problem or the discussion.
The main discussion is on the following point : a strategy is never "symmetrical", you can't hope to reverse a losing strategy to transform it on a winning one.
In my some previous posts including mine, we are already supposing a very specific strategy where SL=TP, which is certainly not a common case. If you want me to say it's not impossible, ok, it's not impossible to reverse a strategy and get positive results, for a while. As all of this is theoretical, the market is never the same, on the real world when a trade is open/close, you can't reverse it...too late.
So my conclusion is : everyone can waste his time as he wants, but don't broadcast illusions please.
Making a strategy as reverse means seeing different sides of a coin and result will be same .
In which conditions a strategy generating losses must be consider. So if going to reverse a strategy you must need to reverse all broker computers conditions to make a winning strategy. If just making strategy reverse and all conditions will remain same in which EA loosing doesn't makes sense. So this is the fact EA can't work in reverse shape.
Mostly strategies can't wins because of trading conditions that's why your back tests always have difference compare to forward tests. For example if a big chart gap come what strategy can do so must need to reverse the chart gap in your favor.
Reverse doesn't means return into past reverse means if EA make losses in future it will do reverse work.
hey guys, i am thinking of this concept and i think its work-able. If you can find a LOSING EA that is consistently @ making "bad entries" and we scalp them. People are anti-scalping on reverse trading. NO i say scalping is perfect its just the scalper must make bad entries. Entries is the main thing. If you can find an EA that enters market and is on losing side in first 10 minute.. (ie: makes 4-5 pips) if you reverse that given we have fix SL/TP with 1:1 RR ie: 10 SL 10 TP. then this concept of reversing is do-able. Don't give me BS about spread because spread is just 1 pip on an ECN mt4 broker. if you are making 10 PIPs with reverse EA you hare still net-profit 9 ok slippage.. 7 pips.. if you can find such bad EA, then lets collectively start this project.
First lets find a BAD EA with a winrate of 80% losing trades with 10 SL 10 TP.
we might need to deploy trade management EA but lets put this aside for now.