Willemglabbeek wrote:I agree that all those filters seem to be needed when you look at the short term action in the currency market. The downside is that you will limit your profitability.
The last few days, due to the action in the JPY, a lot of people thought there was a need to limit the maximum number of pairs containing the same currency. Yesterday and today the winnings are coming out of the JPY. If you would have limited the amount of pairs trading JPY at the same time, you would have missed a lot of profits.
Not trading on high impact news works the same. Most of the time these news comments are in line with the trend and you make a nice profit. Two weeks ago the news was countertrend and we lost some.
Filters can work, but you will cut your winnings.
I think the EA that Andy and co. produced doesn't need any more filters at the moment. Look for the long run.
I don't disagree with your comments, but we know this EA is profitable and I'm sure Andy's innovative idea to link two EA's will solve the drawdown issue, but what i was trying to address is that people have been reporting issues with drawdown or getting taken out by stoplosses.
The biggest error most retail traders make is to keep moving a stoploss when a trade moves against them due to news that is designed to do just that...take out your stop loss. Its always that argument of cut a trade early and let your profits run, and i'm sure most traders do the opposite. I use Wyckoff principles, and its very easy to see this footprint day after day..
If you have a trade thats 100pips in profit and you know that a major announcement is coming form a central bank then you would take your profit, as you're risking 100pips vs a possible XXX pips (upside vs downside risk) more if the news goes in your favour...I personally do not use this kind of strategy as part of my 'trading plan' when trading live. You can also argue that the news is a 50/50 risk as like you say if the news goes in your favour you make more pips, but you have to be happy with the drawdown / stops hit if the news is against your open position.
The point i'm trying to make is if you can avoid drawdown, turning a winning trade into a losing trade and possible getting back in at a lower or higher price that is something that might be worth consider..
Anyway just my thoughts as i like to think as a news filter as being beneficial if used to work in your favour...and having the ability to turn a feature on/off allows the user to decide what kind or risk they want to adopt...that's the great thing about EA's
I'm sure you will agree that there's nothing worse than sitting in-front of your screen watching red pips in your live account!
Jason
