Using percentages instead of pips

[billnye5]

I've been looking around online for the past few days and just cannot find if its possible to use percentage movements instead of pip movements on automated trading in MT4, I'm sure it must be possible but cannot for the life of me find the software add-on needed

Thanks in advance for any pointers

 

[tomorton]

Sensible post. I've said here before, pips mean nothing in spreadbetting. Neither do any individual spreadbetting firm's idea of "points" - that's for their convenience, not the client's I'm sure.

 

[billnye5]

Its just a strategy i came up with is profitable (albeit with some tweeking and some not working) on all ftse 100 shares using percentages not pips, I went through and individually set up backtested each alert before they shut the platform.

 

[EnlightenedJoe]

Profitable in demo pips I am sure. But when real money is involved, they generally move 20% against your position. This is unsurvivable for curve fitters.

 

[billnye5]

Profitable in demo pips I am sure. But when real money is involved, they generally move 20% against your position. This is unsurvivable for curve fitters.

used backtesting and wasn't curve fitting, it was mean reversion albeit with different parameters

 

[EnlightenedJoe]

Back testing is curve fitting. The future market action is not determined by the past. It is determined by what profit is available for those who move the market. Moving the price by 20% against positions generally yields a profit for them. For smaller stocks, there is practically no limit on how far they will move the price to get a profit. Did you know they are trying to make a living ?

 

[billnye5]

so all EAs are useless, and anybody trying to trade the market alone will get beaten up? only companies of size say larger then half a billion can profit from it?

 

[EnlightenedJoe]

Not really, anyone who knows it moves like that can profit. As he should because he can predict the future.

A 500 million company using EAs will get wiped out same as the internet joes.

 

[tomorton]

All this is true - for short-term traders. If you're trying to make a profit in the next 20 minutes or the next hour you're going to find some very big tough opponents who will find it easy to eat you up. Another reason I never trade intra-day.

 

[Solas0077]

Intraday is suicide in most markets, especially fx. Reminds of this article, a must read.

 

[EnlightenedJoe]

Intraday is not suicidal. Wrong size is suicidal.

The typical internet joe is trying to make a living from their 500 dollars. So they bet the lot and lose the lot. If they bet $0.1 instead, no market can kill them.

 

[theforexgeek]

Great Article, thanks for the link. What most "average joe" traders are unaware of is the market sentiment and the order book, which could increase the edge despite the spread still being an obstacle for repeat short term trades especially when dealing with a "market maker" broker.

 

[billnye5]

i've come up with a new theory depending on technical analysis mixed in with a bit of fundamental (TA followed by what the sector the stock is in is doing).
on the side i'll place long-term swing bets like the european debt crisis, it went up rather high but was bound to come all the way back once sorted, or oil recently, went down much too far and as oil consumption is forever increasing, was bound to recover somewhat)

giving it a go within the next 2 months

 

[gerryg]

I think on the peaks we now see on US stocks its wise to split a wager 20% for growth, 80% for correction