From Zero to Hero - in a year's time

babyjake1961

Active member
Oct 25, 2012
390
12
28
#16
What's really bad for my system is complete big price round-trips like the one on EURUSD today. It's not like they didn't happen before (quite a few did, as my backtest shows) - yet my bot has no effective remedy against them. These round-trips first trigger a lot of trades, then lead them to a slaughter.

What do I do about it? Nothing. Do I care? Not for a tiny bit. Will my year-long experiment go on? Of course.
 

Attachments

tomorton

Well-known member
Feb 28, 2002
7,051
915
173
62
Exeter
#17
What's really bad for my system is complete big price round-trips like the one on EURUSD today. It's not like they didn't happen before (quite a few did, as my backtest shows) - yet my bot has no effective remedy against them. These round-trips first trigger a lot of trades, then lead them to a slaughter.

What do I do about it? Nothing. Do I care? Not for a tiny bit. Will my year-long experiment go on? Of course.

Well you can anticipate the events that cause these in some cases. Was this round-trip around the ECB Rate Decision announcement at 1245?
 

babyjake1961

Active member
Oct 25, 2012
390
12
28
#18
Well you can anticipate the events that cause these in some cases. Was this round-trip around the ECB Rate Decision announcement at 1245?
Yes, but these are also the times the robot takes most of its profitable trades historically. The reason it survives and profits in the long run is most of the high-impact events either not resulting in round trips or the round trips not being so short-lived. Big short-lived round trips also happen but they are not dominant on the market.

Overall, the market is always right (or always wrong). Seek no logic in it. Don't fight the tape, cut your losses, sit tight, and follow the strategy. These simple rules have proven correct over and over a countless number of times.
 

babyjake1961

Active member
Oct 25, 2012
390
12
28
#20
My bot went in nicely in the breakout direction following yesterday's FOMC minutes. Are you now expecting the price to keep moving for some more in the breakout direction (thus agreeing with the bot) or to correct back to the pre-FOMC level?

It doesn't matter, actually, because large breakouts statistically result in new trends about 50% of the time. So if your risk is contained and your TP is greater than your SL, you have an edge over the market, provided you also have enough patience.
 

Attachments

babyjake1961

Active member
Oct 25, 2012
390
12
28
#24
Ah yes -7.03% currently.
Right - with a start last month.

The impatient have no way of beating the market. They are fed to the bucket shops wholesale and retail instead. These seekers of immediate profits become an easy source thereof.

Weren't you the one suggesting I use "some oscillator" as an offsetting ranging strategy in the other thread? :D
 

Pat494

Well-known member
Mar 27, 2004
13,125
1,241
223
#25
Right - with a start last month.

The impatient have no way of beating the market. They are fed to the bucket shops wholesale and retail instead. These seekers of immediate profits become an easy source thereof.

Weren't you the one suggesting I use "some oscillator" as an offsetting ranging strategy in the other thread? :D
Yes I was. Do you not like that idea ?
 

c6ackp

Active member
Aug 14, 2004
441
28
38
#28
Hi - How many signals per month, on average, does the algorithm generate? I notice that last night's trade was the first signal this month - is that typical?
 

babyjake1961

Active member
Oct 25, 2012
390
12
28
#30
Hi - How many signals per month, on average, does the algorithm generate? I notice that last night's trade was the first signal this month - is that typical?
The number of signals entirely depends on the number of sufficiently large price breakouts. An entry is triggered by such a breakout.