collapse

Author Topic: Commercial EAs are not Smart  (Read 403 times)

Offline donbon2

  • Sr. Member
  • ****
  • Posts: 1462
Commercial EAs are not Smart
« on: June 12, 2018, 09:34:16 PM »
I just wanted to say something I think is important for especially newer people.

Commercial EAs you see listed here and most of them for sale are not smart .. and most of them are $200-$1000 .... that tells you the creator has backtested the strategy for 5 or so years and created something that over time works... but it doesnt change.

what does change is markets and all of a sudden a successful strategy now goes straight into drawdown --- that tells you almost straight away that something is not right.... good strategies follow the market -- good strategies the entry levels are good and TP get hit often ... bad systems buy or sell and the market moves opposite to the trade quickly. bad systems leverage up one side of the market too much.

so please do not expect the holy grail of riches for $250 -- owning an EA is work ... you really need to track it closely - so when it is doing well - you let it trade and when it is not you dont let it suck out 20% of your capital.

we all need to work together here to make this a success -- otherwise we all end up as roadkill.
Broker - IC Markets   VPS - Amazon EC2 + CNS  

EA:
BS + BFS = not trading them at the moment due to market conditions
Forex Trend Detector - EUR normal and high frequency + GBP (small account MM 0.5% Recovery)
Vol Factor 2 -- EUR MM1.3% + YEN MM1.2% + GBP MM0.9%  (((My Number 1 recommended EA at the moment)))
WS Evo 2 - EUR MM1.2% + GBP MM1.2% + YEN MM1.2% (I do not use WS Asia or Recovery Version)
Forex Diamond - EUR + GBP + YEN (very small account)

(Martingale Trend Strategy - Zone/Parabolic/SuperTrend
 starting lot size 0.01)

News - Thomson Reuters Eikon
Trade Manager - Visual Trading Console for MT4
Trading Rebates - through CashBackFX
VPS - I recommend Amazon EC2 ... but if you qualify get a broker sponsored one as well for scalpers

Offline Humble Trader's Fx

  • Sr. Member
  • ****
  • Posts: 897
Re: Commercial EAs are not Smart
« Reply #1 on: June 12, 2018, 10:03:32 PM »
I just wanted to say something I think is important for especially newer people.

Commercial EAs you see listed here and most of them for sale are not smart .. and most of them are $200-$1000 .... that tells you the creator has backtested the strategy for 5 or so years and created something that over time works... but it doesnt change.

what does change is markets and all of a sudden a successful strategy now goes straight into drawdown --- that tells you almost straight away that something is not right.... good strategies follow the market -- good strategies the entry levels are good and TP get hit often ... bad systems buy or sell and the market moves opposite to the trade quickly. bad systems leverage up one side of the market too much.

so please do not expect the holy grail of riches for $250 -- owning an EA is work ... you really need to track it closely - so when it is doing well - you let it trade and when it is not you dont let it suck out 20% of your capital.

we all need to work together here to make this a success -- otherwise we all end up as roadkill.

True and good advice Donbon2.

May I suggest you use this thread from now on, to note when you decide to turn on/off your EA's. I would welcome this because I and others who follow your guidance, can use the notify feature to email us when you make a post to this thread; advice which I consider critical from a seasoned trader like yourself.


Thanks again for your sincere contribution in DonnaFx.

Regards,
HumbleTrader
We humbly approach the Forex Market and take only what is earned by our hard work and intelligence.

Offline donbon2

  • Sr. Member
  • ****
  • Posts: 1462
Re: Commercial EAs are not Smart
« Reply #2 on: June 12, 2018, 10:28:06 PM »
Sure

right now I have turned off Forex Trend Detector and my trending Martingale Strategy - because the chances of selling the low are quite high at the moment

VF2 WSE and FTD are running normally.
Broker - IC Markets   VPS - Amazon EC2 + CNS  

EA:
BS + BFS = not trading them at the moment due to market conditions
Forex Trend Detector - EUR normal and high frequency + GBP (small account MM 0.5% Recovery)
Vol Factor 2 -- EUR MM1.3% + YEN MM1.2% + GBP MM0.9%  (((My Number 1 recommended EA at the moment)))
WS Evo 2 - EUR MM1.2% + GBP MM1.2% + YEN MM1.2% (I do not use WS Asia or Recovery Version)
Forex Diamond - EUR + GBP + YEN (very small account)

(Martingale Trend Strategy - Zone/Parabolic/SuperTrend
 starting lot size 0.01)

News - Thomson Reuters Eikon
Trade Manager - Visual Trading Console for MT4
Trading Rebates - through CashBackFX
VPS - I recommend Amazon EC2 ... but if you qualify get a broker sponsored one as well for scalpers

Offline nwboater

  • Sr. Member
  • ****
  • Posts: 1487
Re: Commercial EAs are not Smart
« Reply #3 on: June 13, 2018, 03:24:48 PM »
Sure

right now I have turned off Forex Trend Detector and my trending Martingale Strategy - because the chances of selling the low are quite high at the moment

VF2 WSE and FTD are running normally.

Hi donbon2,

Thanks very much for your posting this information, and thanks to Humble for suggesting you use this thread for doing it.

We are on vacation for most of June and have stopped trading all EA's. Looking forward though to starting up again on our return and am certain that this information will be very useful.

Cheers,
Rod
EA's (All run on separate accounts):
Wall Street: Volatility Factor 46%, Wall Street 2 23%, Diamond 11%, Trend Detector 5%.
Cyborg 15%

On Hold: Best Free Scalper & Best Scalper.

Broker: IC Markets
VPS's: Amazon EC2 & Beeks.
Rebates: HFT Group

Offline Jax

  • Jr. Member
  • **
  • Posts: 47
Re: Commercial EAs are not Smart
« Reply #4 on: June 13, 2018, 03:57:32 PM »
Hello

I had a idea about ON/OFF EA's when they reached some DD level. For example, for 3 years backtest MDD = 20%. Then when it's reach 15% - OFF, wait return 3-4% - ON.
This parametres, ON and OFF strategy, can be optimized.
How you think this can work?

Thanks :)

Offline donbon2

  • Sr. Member
  • ****
  • Posts: 1462
Re: Commercial EAs are not Smart
« Reply #5 on: June 13, 2018, 11:21:01 PM »
all you need to look at is the entry price -- if this correlates with market movement you know it is fine.

but you see some of these EAs they buy or sell and market moves immediately 100 pips against them -- these are clumsy EAs and better not to use them  ... entry price must be respected by the market.

if you wait for 20% DD it is too late
Broker - IC Markets   VPS - Amazon EC2 + CNS  

EA:
BS + BFS = not trading them at the moment due to market conditions
Forex Trend Detector - EUR normal and high frequency + GBP (small account MM 0.5% Recovery)
Vol Factor 2 -- EUR MM1.3% + YEN MM1.2% + GBP MM0.9%  (((My Number 1 recommended EA at the moment)))
WS Evo 2 - EUR MM1.2% + GBP MM1.2% + YEN MM1.2% (I do not use WS Asia or Recovery Version)
Forex Diamond - EUR + GBP + YEN (very small account)

(Martingale Trend Strategy - Zone/Parabolic/SuperTrend
 starting lot size 0.01)

News - Thomson Reuters Eikon
Trade Manager - Visual Trading Console for MT4
Trading Rebates - through CashBackFX
VPS - I recommend Amazon EC2 ... but if you qualify get a broker sponsored one as well for scalpers

Offline Tripper

  • Jr. Member
  • **
  • Posts: 7
Re: Commercial EAs are not Smart
« Reply #6 on: June 14, 2018, 12:01:36 AM »
The biggest financial institutions in the world pay fortunes to recruit the finest brains in computer science, physics and maths from the best universities in the world to attempt to make automated profits with connections directly linked to the exchanges. They still dont find it easy.

To expect to have an edge over the market because youve spent $300 on a piece of software created by some geek in Ukrania in his bedroom that operates on manipulated MT4 software with a two bob broker and to think it will work.

Not very realistic is it.

Offline donbon2

  • Sr. Member
  • ****
  • Posts: 1462
Re: Commercial EAs are not Smart
« Reply #7 on: June 14, 2018, 06:09:04 AM »
thats part of it as well -- and a big part of why I say - you can tell quickly if an EA works or not - or if it is becoming roadkill .... definately something newer traders have to realize ... $250 only gets you so much -- set and forget is not realistic most of the time.
Broker - IC Markets   VPS - Amazon EC2 + CNS  

EA:
BS + BFS = not trading them at the moment due to market conditions
Forex Trend Detector - EUR normal and high frequency + GBP (small account MM 0.5% Recovery)
Vol Factor 2 -- EUR MM1.3% + YEN MM1.2% + GBP MM0.9%  (((My Number 1 recommended EA at the moment)))
WS Evo 2 - EUR MM1.2% + GBP MM1.2% + YEN MM1.2% (I do not use WS Asia or Recovery Version)
Forex Diamond - EUR + GBP + YEN (very small account)

(Martingale Trend Strategy - Zone/Parabolic/SuperTrend
 starting lot size 0.01)

News - Thomson Reuters Eikon
Trade Manager - Visual Trading Console for MT4
Trading Rebates - through CashBackFX
VPS - I recommend Amazon EC2 ... but if you qualify get a broker sponsored one as well for scalpers

Offline krisz

  • Full Member
  • ***
  • Posts: 187
Re: Commercial EAs are not Smart
« Reply #8 on: June 15, 2018, 10:02:46 PM »
software created by some geek in Ukrania in his bedroom

Actually I was in the toilet  ;D

Offline Trunk

  • Full Member
  • ***
  • Posts: 208
Re: Commercial EAs are not Smart
« Reply #9 on: June 18, 2018, 05:29:40 PM »
So it means that best approach to trading is only developed by own hands where we understand every part of the system and have control over everything? Is purchasing EA is a bad idea for newbie traders?

Offline donbon2

  • Sr. Member
  • ****
  • Posts: 1462
Re: Commercial EAs are not Smart
« Reply #10 on: June 18, 2018, 09:39:06 PM »
I don't think it is a bad idea to buy an EA -- but the days of set and forget are gone -- the market is smart these days -- so sometimes you have to turn off a certain type of strategy when the market is bad -- if you dont all of a sudden 20-30% of your equity is gone.

you probably need to own 2-3 different strategies and research them yourself --- $250 only buys you so much.
Broker - IC Markets   VPS - Amazon EC2 + CNS  

EA:
BS + BFS = not trading them at the moment due to market conditions
Forex Trend Detector - EUR normal and high frequency + GBP (small account MM 0.5% Recovery)
Vol Factor 2 -- EUR MM1.3% + YEN MM1.2% + GBP MM0.9%  (((My Number 1 recommended EA at the moment)))
WS Evo 2 - EUR MM1.2% + GBP MM1.2% + YEN MM1.2% (I do not use WS Asia or Recovery Version)
Forex Diamond - EUR + GBP + YEN (very small account)

(Martingale Trend Strategy - Zone/Parabolic/SuperTrend
 starting lot size 0.01)

News - Thomson Reuters Eikon
Trade Manager - Visual Trading Console for MT4
Trading Rebates - through CashBackFX
VPS - I recommend Amazon EC2 ... but if you qualify get a broker sponsored one as well for scalpers

Offline wallstreet.forex.robot

  • Jr. Member
  • Full Member
  • **
  • Posts: 439
    • WallStreet Forex Robot
Re: Commercial EAs are not Smart
« Reply #11 on: June 18, 2018, 10:13:51 PM »
Generally speaking the market is unpredictable, but there are a few statistically working models and most of the decent systems out there exploit those models one way, or another. It is absolutely impossible to predict the next let's say 100 pips move with 100% accuracy, but it is definitely possible to do this with 60% accuracy ... but you need a strong, proven market dependency to do this. The problem is that you are playing a game of probabilities and the casual trader does not understand this. Here is how a proven working model looks like. Unfortunately it is like once in two months rare.
This is the official donnaforex profile of the WallStreet Forex Robot team. If you have support issues or questions, please use our support system, because we cannot guarantee we will be able to monitor our topics in donnaforex all the time.


Offline wallstreet.forex.robot

  • Jr. Member
  • Full Member
  • **
  • Posts: 439
    • WallStreet Forex Robot
Re: Commercial EAs are not Smart
« Reply #12 on: June 18, 2018, 10:28:15 PM »
By the way, what is the definition of "smart"? It is a relative concept - you can be a little smart like not jumping under a bus randomly and a lot of smart like the whole knowing and mighty ruler of the universe, which is commanding you to not eat shellfish  :)
This is the official donnaforex profile of the WallStreet Forex Robot team. If you have support issues or questions, please use our support system, because we cannot guarantee we will be able to monitor our topics in donnaforex all the time.


 

browse forum

* Recent Posts

Re: Do you think you can do Forex business anytime? by Eliza Abrams
[Yesterday at 02:31:34 PM]


Re: What inspires you to trade? by slimboydim
[Yesterday at 10:21:28 AM]


Re: Volatility Factor by Tyler
[Yesterday at 07:15:56 AM]


Re: Forex Force 2.0 by torrie602
[Yesterday at 02:44:34 AM]


Re: Wall Street Forex Robot by Svenson
[June 22, 2018, 11:34:50 PM]


Re: Volatility Factor by nick3232
[June 22, 2018, 10:43:42 PM]


Re: Trading Personalities -- Best Lifestyle, Goals, Values, and Psychology by reinerh
[June 22, 2018, 09:48:49 PM]


Re: Volatility Factor by FLechdrop
[June 22, 2018, 09:47:13 PM]


Re: Forex Force 2.0 by rsmereka
[June 22, 2018, 08:16:08 PM]


Re: Forex Force 2.0 by jwatts7701
[June 22, 2018, 07:07:48 PM]