Hi All,
My intro - skip to next paragraph for the question.
As my name suggests I'm a discretionary trader, and I have never actually used an EA. My personal opinion is that far too many traders in retail spend too much time looking for killer systems and not enough time actually trading. Some of the comments I read in these threads (I mean all over FF) truly astonish me. Having said that, I sometimes get insights into the market that I wish I could code as a signal, but alas, I am no coder and don't have the time/patience for it. I have a lot of patience for the forex market however, and I absolutely fell in love with it over three years ago, which gave me the patience to trade demo accounts for over two years before going live. In the beginning I focused on pure tech., but before I went live I developed approaches based on data outside of price action as well.
My question to start this thread is about different approaches to risk-management in trading systems. What about only taking trades where a certain risk/reward ratio (SL/TP levels) is statically probable according to a further algorithm, and build that as a sub-routine for a wide variety of signal generators? Or just a few based around the same logic as the algorithm. I'm thinking something based around ATR and volatility indicators (indexes).
Also, does MQL4 have the ability to crunch data by any time-frame? For example, if you wanted to count the difference of H minus L price, including spread, every 10 seconds, and maybe include volume into the mix? Would you need some kind of external script like Perl for this?
And here's a truly wild idea: feed data from a very successful manual trader and use the computer to find correlations and consistencies within all known data points, and code them. Update the data every 28 trading days and compare the new results, correlate them further, etc.
That was a joke. For a trader, I have a very good sense of humour.
My hope for this thread is it becomes a space where people can express their more abstract ideas about the behaviour of the market, and how we might make it relevant, and to generate ideas to share with other, more specific threads.
Michael
My intro - skip to next paragraph for the question.
As my name suggests I'm a discretionary trader, and I have never actually used an EA. My personal opinion is that far too many traders in retail spend too much time looking for killer systems and not enough time actually trading. Some of the comments I read in these threads (I mean all over FF) truly astonish me. Having said that, I sometimes get insights into the market that I wish I could code as a signal, but alas, I am no coder and don't have the time/patience for it. I have a lot of patience for the forex market however, and I absolutely fell in love with it over three years ago, which gave me the patience to trade demo accounts for over two years before going live. In the beginning I focused on pure tech., but before I went live I developed approaches based on data outside of price action as well.
My question to start this thread is about different approaches to risk-management in trading systems. What about only taking trades where a certain risk/reward ratio (SL/TP levels) is statically probable according to a further algorithm, and build that as a sub-routine for a wide variety of signal generators? Or just a few based around the same logic as the algorithm. I'm thinking something based around ATR and volatility indicators (indexes).
Also, does MQL4 have the ability to crunch data by any time-frame? For example, if you wanted to count the difference of H minus L price, including spread, every 10 seconds, and maybe include volume into the mix? Would you need some kind of external script like Perl for this?
And here's a truly wild idea: feed data from a very successful manual trader and use the computer to find correlations and consistencies within all known data points, and code them. Update the data every 28 trading days and compare the new results, correlate them further, etc.
That was a joke. For a trader, I have a very good sense of humour.
My hope for this thread is it becomes a space where people can express their more abstract ideas about the behaviour of the market, and how we might make it relevant, and to generate ideas to share with other, more specific threads.
Michael