I belive you can flip a coin and make money, it´s all upp to your monymangement and mental strenght .
In other words, there are thousands of ways to approach the market and all works if you are disciplined and follow your system.
The difficult part is not to get decent buy or sell signals. The difficult part is to find a way of trading that suits you and your personality and
mentally with losing trades , max drawdowns , working hours, family etc.
As you know the coin has two sides and thats the case in everything, i know if i make only 5-10 trades a year i would make much more money then
like know when i make 2-6 trades a day! But i´m to bored because when you are in a trade you are interested to se how it goes .It´s like watching paint dry
and when you are not in a trade you even then wants to keep up to see when and if a new trade develops etc.
For people that dont have been watching an computer screen 10 hours a day for last 20 years, they don´t understand and think i´m stupid not
to look for 6 trades a year, make money and have time to travel and be with your kids. etc. But that dosen´t suit me!
I think backtesting can be a way of gaining certain knowledge that can help to choose how often you want to be in the market, how many trades a
day, week, month and years would be fine and finding a risk vs reward that suits you and how much you can afford to loose without feeling bad
when sleeping etc.
There is no secrets , there is no trader or indicator that can tell you at 100% what will happen tomorrow or next hour but like in sports betting and
horses you can look for and create a system that gives you best possible edge and risk vs reward. With good dicipline and MM yo will win.
With small timeframes you get more noice but when right you came in at a bottom price and can use small stops, the bad thing is many false
signals with many small losses . With bigger timeframes you get less noice and less false signals but need bigger stops , you will have more winning
trades but when losing it hurts more at the time. It dosen´t matter wich timeframe , indicator of filter you use. They will all find some kind of problems
when trend is shifting or when there is no trend at all.
Also when you start a trading system for real, wait for best possible moment. Don´t just jump in at the market because it´s fun. Wait until the
market i really oversold and take next buy signal in order to get a good start so the max drawdown dosen´t happen at once.
I think that you should only take trades with the trend. You need a filter from an much higer timeframe (Daily) then the one you get the
buy/sell signals from (30min). Next step is to wait for overbougth in downtrend or oversold in up trend in an medium timeframe (2 hours).
When you take the trade you need a quite generous stop and when/if the trade goes your way then don´t be greedy . Take a smaller profit then
the normal max developing trade can give you. Perhaps use ATR to se how much it normally moves. This is how i trade but i combine it with
pending orders at recently pivot/turning points .Example: If Daily is trending up, 2 hours stoch is under -50 and the price is nearby an earlier
pivot/turning point you buy and place stop way under the recent resistance then you have best possible RR and then still sometimes you get
it wrong 🙂
Im here and want to get my systems on code because i want to be a better familly father but also because the only advatages i can see with autotrading
is that the computer dosen´t care if BOE,BOJ, FED is speaking or if the time is 04.30 in the morning etc. My problem is that i overtrade because
im bored and it´s fun. I feel better with a loss then not been in the market at all. So im willing to give some of my profits away to the market in
order to be fully automatic and more free! I´m sure there is not a system that can replace a developed experience and feel for the market combined
with indicaters and price reading but one have to sacrifice something.
Most traders lose money and yet it´s quite simple if you don´t do to much curve fitting and are not to greedy. Keep it simple, have faith, wait
for the right moment wich can be weeks from now.
Below a simple investment code using normal MA20 vs MA50 in weekly timeframe. If
you followed it on DAX30 and buy one contract since 1996 (7 trades, 1 Loss, +15000 points ) since: 2000 (5 trades, 0 loss +12000 points)
since: 2004 (4 trades, 0 loss + 10000 points) since: 2009 (3 trades, 0 loss + 7000 points)
One point/contract is 25 eur so profit between 375.000 EUR to 175.000 EUR why are we making everything so hard?
//Curre 2016-08-06 Boring Invest Weekly MA 20/50
// Definition of code parameters
DEFPARAM CumulateOrders = False // Cumulating positions deactivated
// Conditions to enter long positions
indicator1 = Average[20](close)
indicator2 = Average[50](close)
c1 = (indicator1 CROSSES OVER indicator2)
IF c1 THEN
BUY 1 CONTRACT AT MARKET
ENDIF
// Conditions to exit long positions
indicator3 = Average[20](close)
indicator4 = Average[50](close)
c2 = (indicator3 CROSSES UNDER indicator4)
IF c2 THEN
SELL AT MARKET