For a lossing EA, if we reverse all the trades (Old buy becomes New sell, vice versa), will the new system be profitable?
- Close the following trade in mt5
- Requests & Ideas
- Error 130 modifying order on ECN broker
Please vote first before read the following replies.
Also, please do not reply until you see at least 20 votes.
Thank you!
I know you requested not to reply until 20 votes (don't know why) but i must provide a link from an article that i find quiet relevant to this poll. It shows by example that performing the oposite trades is not always the most profitable path:
https://www.mql5.com/en/articles/143
You'll want to look at point 4.2.
- 2010.09.14
- MetaQuotes Software Corp.
- www.mql5.com
About the 20 votes dilemma, as far as I know it is not necessary since we can just see all votes and messages after we vote, but congratulations for looking for this level of research quality.
Before i will agreed that reversing trade will turn into gain, i want to see if there is any EA that always lost open position. I have tried to reverse trade but it turn to lost. So we need an EA that always lost in order to agree.
- For an ordinary bad EA, if you reverse it, it will most likely to be a loser again.
- Only for extremely bad EA (<1% maybe), after reversing it will become a winning EA.
- One of the most important reason for most EA, no matter reverse or not, to be losers is the spread. Spread eats lot of profit!
- It is NOT an easy job to build a winning EA. I guess less than 1 percent of all EA ever developed are winning EA.
Most of time No.
Your question is framed in the view that market is linear.
In the linear market, yes, reverse trading logic will provide you opposite results.
In nonlinear market, your losing EA is losing because they just enter the market wrong timing as well as frictional cost. Reversing the trade will provide your EA to enter the market another wrong entry timing.
Financial market is nonlinear, the simple reverse strategy is very hard to become good strategy.
I often tried to revert losing EAs for me or some clients but most of the time it was even worse.
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