Anyone recommend a good long term trading EA strategy for swing trades
Hi jarisila,
If you're merely looking for a magic bullet - an EA you can plug in and then watch the money role in - I fear your search will be fruitless. Put it like this, I've never even heard a rumour of anyone achieving this, let alone know of anyone actually doing it. If you have a methodology and you want an EA to help with a particular aspect of your trading - then you know what you're looking for. For example, I prefer Renko charts to standard candlestick or bar charts, so I hunted around and found an EA that enables me to display them. The EA won't make me any money; it's just a useful tool to have. The key is having a very clear and very specific idea of what you're looking for to begin with - then the search becomes easier.
Regarding pro4Xtrader's suggestion about Martingale - I would advise the exact opposite. It's a highly seductive concept, but it's totally flawed and doesn't work - for two reasons . . .
Firstly, it assumes that the trader has an account with an infinite amount of capital in it. If the first trade is at £5.00 per point, by trade No. 10 you’ll have to bet £2,560.00 to recover your losses and, by trade No. 20, you’ll have to bet a whopping £2,621,440.00 to recover your losses. Very few retail traders have this sort of money to gamble with. The second problem with it is that most brokers will have a house limit as to how much you can bet per trade, regardless of the size of your account.
The common riposte to these two flaws with Martingale is that the probability of experiencing 10 or more consecutive losing trades is very low. This may or may not be the case, depending on the success ratio of the methodology employed. Even so, it’s a risk not worth taking, not least because as a trader, you must do everything in your power to minimise risk - not take any unnecessarily large ones. In the famous words of John Maynard Keynes,
"markets can remain irrational longer than you can remain solvent." In other words, put Martingale to the test and, sooner or later, you will blow up your account and become insolvent. Sorry jarisila, Martingale is not the holy grail - don’t fall for it!
Tim.