Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2014.04.25 06:49
Why Traders Lose Money (based on dailyfx article)
The Difference between Trading and Analysis
Many new traders come to the market with a bias or point-of-view.
Perhaps this is built from a background in economics, or finance, or
maybe just a keen interest in politics. But one of the biggest mistakes a
trader can make is harboring the expectation that ‘the market is wrong
and prices have to come back.’
But let’s face it: Markets are unpredictable, and it doesn’t matter what
type of analysis you use. As new information comes into the market,
traders and market makers price it accordingly; because these folks
don’t want to lose money just as much as you don’t want to lose money.
Is this to say that analysis is worthless? Absolutely not: It merely
means that analysis is only a part of the equation of being a successful
trader. Analysis is a way to potentially get the probabilities on the
trader’s side, even if just a by a little bit; a way to maybe get a 51%
or 52% chance of success as opposed to a straight-up coin flip.
Good analysis, whether it be fundamentally-driven or technically-driven,
can be right a majority of the time. But no form of analysis will ever
be right all of the time. And this is the reason that there is such a
large chasm between analysis and trading.
In analysis, it doesn’t matter how wrong you are when you aren’t right.
In trading, this matters quite a bit. Because even if you’re winning on
70% of your trades, if you’re losing $3 for every trade in which you’re
wrong but only making $1 every time that you’re right, you’re still
losing. It might feel good, because 70% of the time you’re walking away
from your positions with the feeling of success; and as human beings
this is something we generally strive for (to feel good).
The example below shows how bad risk management can destroy even a strong winning percentage of 70% success.
But logically, it doesn’t make sense to embark on this type of endeavor
because the goal of trading is to make money; not necessarily to just
‘be right’ more than 50% of the time.
How to actually trade analysis
First thing first, traders need to crystallize what their actual goal is
in trading in markets; and point-blank, that goal should be to make
After that, traders need to expect that they will, at times, be wrong.
So given these two facts, the next logical assumption is that without
being able to control the damage from those instances in which we’re
wrong, the prospect of profitability is a distant one.
So risk management isn’t just a preference or a style of trading: It’s a
necessity for long-term profitability. Because even if you’re winning
90% of the time, the losses on the other 10% can far outstrip the gains
that are made on the 90%.
I fully realize this isn’t necessarily exciting information. When I
teach risk management, rarely do a see a student-trader ready to burst
out of their seats to go and manage some risk. Most people want to hear
about entry strategies, and analytical methods to try to get those odds
of success tilted even higher in their favors.
But until a trader learns to manage their risk, much of this additional
work is a moot point. Because as long as the risk exists that one bad
position can and will wipe away the gain from many other ‘good’
positions; that trader is going to struggle to find profitability.
So, to properly trade analysis one needs to first observe proper risk
management. Because trading isn’t just ‘guessing’ and ‘hoping’ that we
get it right. Profitable trading is implementing analysis while properly
managing risk factors; implementing a defensive approach so that when
one is wrong, the losses can be mitigated and when one is right, profits
can be maximized.
How can one begin to use ‘proper’ risk management?
We’ve already encountered one of the biggest mistakes of risk
management, and that’s controlling the size of the losses relative to
the size of the gains.
The solution is simple; implementing it not as much. As human beings,
we often follow our gut instincts or our ‘feelings.’ But in trading, we
have to keep the bigger picture in mind. When we place a trade, we often
try to win on that one trade. This can keep traders holding on to
losers for far too long, and closing out winners way too quickly.
help about signals tab
Alain Verleyen, 2014.03.28 13:23
That question has been asked numerous time, please do some search before posting : MQL5.com Search - Quick, Easy and Convenient!
About signal tab :
Contact your Broker, not all Brokers offer signals on MT4
Is this enough ?
New MetaTrader 5 video guides for beginners
MetaQuotes Software Corp., 2016.07.19 12:53
More and more brokers choose MetaTrader 5 as the primary platform for providing services to their traders. Alpari has noted significant growth on the number of new trading accounts. Representatives of RoboForex
have also reported a steep increase in the number of accounts opened
through the MetaTrader 5 platform. Furthermore, a growing number of
traders on Moscow Exchange tend to choose the new platform and switch to MetaTrader 5 brokers.
At the same time, brokers and platform developers have recorded an
increase in the number of requests for technical support from traders
who are actively exploring the new platform capabilities. For this
reason, MetaQuotes Software has prepared a series of MetaTrader 5 video
guides for both brokers and their technical support teams.
These five-minute videos aim to familiarize traders with all
analytical and trading features of the platform. The videos provide
general information on all basic features, as well as explanation on additional services, including the Market of trading robots,
the Trading Signals service, Virtual Hosting and the Freelance
resources. For convenience, the videos contain links to detailed video
tutorials of other platform components.
can handle the increased load from traders and brokers," said Gaies
Chreis, COO of MetaQuotes Software Corp. "We expect an intensified
influx of clients, and we are preparing new efficient solutions to serve
traders. For example, now we are looking to integrate video tutorials
straight into the platform. This can provide traders with quick access
to assistance and reduce the load on brokers' internal help desk."
The new videos with professional English and Russian voice over are available on the MetaQuotes' official YouTube Channel.
The videos are also available with subtitles in 8 languages: Arabic,
Chinese, French, German, Japanese, Portuguese, Spanish, and Turkish.
Watch the short video and discover the new features of MetaTrader 5 in five minutes!
Time & Sales in MetaTrader 5: a new tool for analyzing exchange markets
MetaQuotes Software Corp., 2016.07.20 12:21
Last Friday, the new MetaTrader 5 trading platform
build 1375 with the Time & Sales option was officially released.
The Time & Sales feature in the Market Depth window enables users to
view the real-time list of all exchange transactions.
The Time & Sales list provides in-depth trading data, including
records on time, direction, price and volume of each transaction. Trade
volumes are displayed as a histogram, with a color coding of different
Time & Sales provide a detailed view of trading activity on
various price levels. An increasing activity of buyers and sellers can
indicate the upcoming rise or fall in security prices. Trade
volumes and frequency can provide an indication of the current
market sentiment and emphasize the importance of individual price
levels. Although the Time & Sales option is primarily used by
intraday traders, it also provides useful data for long-term traders who
prefer to hold their positions open for a few days. In addition to the
visual analysis of Time & Sales, the featured data can be exported
to a CSV file for further analysis using third-party applications, such
as MS Excel.
If you want to evaluate the new functionality, open a demo account
with MetaQuotes-Demo and updated your MetaTrader 5. Your broker's
platform should be updated to version 1375, in order to enable proper
operation of Time & Sales on live accounts.
Start using the Time & Sales option now, and take full advantage of the MetaTrader 5 exchange trading capabilities!
How to Start with Metatrader 5
Sergey Golubev, 2016.05.08 20:17
Interesting article found - Self-optimization of EA: Evolutionary and genetic algorithms
Sergey Golubev, 2013.07.24 10:00
I just want to remind about how to insert the images to the post - read this small article
MQL5.community - User Memo :
All your texts in Forum, Articles and Code Base are edited in a single environment with a convenient and easy-to-use interface. Let us take a look at its capabilities.
The drop-down list where you can select one of the three
languages in which your message will be automatically translated by
the Google Translate service.
The button (Ctrl+Alt+L) is used for adding links into messages. The Link window appears as soon as you click this button (shown next).
In the Link field, you should specify the address of the link and then click the Insert button.
The button (Ctrl+Alt+I) is used for inserting pictures into messages. The Image window appears as soon as you click the button (shown next).
In the Upload image field, you should specify the picture file. To do it, click the Browse button that opens the standard window to choose files. Select the necessary file and click the Insert button to confirm the choice, or click the Cancel button to end without uploading a file. In the Title field, you can specify the comment that will be displayed as a pop-up help if you move the mouse cursor over the picture.
In HTML mode, it is prohibited to insert external links
to images (HTML tag "src"). It is also prohibited to insert text,
containing such images.
When you try to save text that contains external links to
images, such links will be automatically deleted. This is done to
ensure safety of MQL5.community members.
Simon Gniadkowski, 2013.07.24 10:18
How to post code on this forum . . .
Sergey Golubev, 2013.08.20 20:22
Sergey Golubev, 2016.04.20 08:48