Hello everybody,
I'm new here on the forum and I want to post an idea, which I had some time ago.
It's not really a system, it's more a kind of automated trading and equals a bit Nanningbob's manual trading theory in ff (http://www.forexfactory.com/showthread.php?t=308304 and the two other threads; I hope I'm allowed to post an ff link
: ). I want to focus on automated trading, because I think trading without emotions is better, especially for new traders. So I decided to post here and not at ff, because Steve is something like an "EA God" and its forum is focused on eas. So enough has been said, now the idea:
Steve has coded many, many eas and there are very successfull ones. Successfull means in one year you can expect an account growth of 5,10,...%. But I've noticed that every ea has its phases of drawdown. Sure that isn't something new and it's logical, because it has no brain or eyes to interprete the markets. It only reacts.
Let's make a little example:
A counter trend ea on 1 min TF is very successfull and is able to double your account in one year. But sometimes (like last Friday) your account gets a serious hit, because the market is trending upwards and you have to handle a dd of 50% (only a virtual value). So you usually get very nervous and it's hard to believe in the successfullness of the ea. Furthermore, if you start the ea on your account, you have to calculate the accountequity and margin, so that you can survive a huge dd and your account not get blown.
Now we take a combination of eas as follows:
Trend EA
Counter Trend EA
Swing EA (optional)
News EA (optional)
Something important: I think a broker, which allows hedging is usefull for more eas. Otherwise there have to be some algorithms to avoid a buy or sell order a the same time.
Another example:
You still have the same countertrend ea mentioned above and the dd and profit expectations are still the same. But during a dd phase, you have another active trend ea, which is able to do many successfull trades, because this ea is designed for the phase. The perfect case would be, that you the trend ea makes more money than the countertrend ea has dd. In countertrend phases it would be the opposite.
So all in all the profit expectations over one year aren't different. That's very important, because it's not an idea to get more profit, it's one to handle the dd. The main difference is that your account gets a static increase without a huge dd and independing of the market condition. So the trader can sleep better
In addition this strategy increases indirect the profit, because you have to calculate margin etc. with less dd and you are possible to trade more pairs or more tfs etc at the same time.
Now, if you are interested, I need some help, because I'm not such a good coder and I know many, but sure not all of Steve's ea. (I'm more a thinker
) You can suggest an ea for a specific phase of the market. Then we could test all eas together on a demo account and improve or change the single eas and overall increase the profit. But the main development ist still made by Steve and in the threads of the eas. Here would be only the combination of all the great work.So that's all for now and it's a bit longer than expectet, but I hope that I don't wasted your time.
Maybe you can think about the topic.
Thank you
MasterYoda
P.S.:
-I hope you can understand my school english.
-Please don't take the title of the thread to serious
-I'm not sure if here is the right place for the tread in the forum (otherwise please move it)