I was reading forum posts on SteadyOnFx forum. There were bunch of traders worrying about brokers, execution, NO system, etc. Seems like people are so nervous and in panic after relatively bigger losing day.
After such losses, people desperately started to try to identify the cause of the failure. Some people say the problem is on the broker. Others say SOFX team has to modify NO.
I say "It was one of these days. It happened naturally, and it will happen again." Nobody can avoid these days. No EA is perfect. No EA can cope with every situation.
I would like to talk about common errors that traders can make.
Trader A: Trader A got a bad loss and he decided to modify his EA. He really wanted to make the EA immune to the previous loss case. After a couple of attempts, he successfully found the way to cope with such a market situation. However, overall profitability of the EA was reduced so badly because he concentrated too much on a single case, and didn't pay much attention to being a winner in a long run.
Trader B: Trader B reduced his trading lots, drastically, after a bad loss. When he traded with smaller lots, there was a very good winning trade, but, of course, his profit was small. He got frustrated and increased his lots again. Right after that, there came a bad trade. He lost his confidence again and reduced his risk again. He finally got nowhere.
Trader C: Trader C changed his broker after one bad loss. But other traders kept winning on the broker he left, and he started to lose on his new broker.
Trader D: Trader D accepted a bad loss. He changed nothing and kept trading because he knew losing is a part of the game. He got more losses and people started to think he is really stupid. But in a long run, he was the only winner among others.
What's the difference? It's consistency (or the lack of consistency).
Why such errors happen? It comes from fear and greed.
With that said, I will probably change my broker when it obviously made its trading environment worse. But unless I surely confirm such a change, I take a loss as just a loss, nothing more. Those who are not mentally prepared to face losing days can't win in a long run. I've seen so many of these people who surrender an EA so easily after a couple of losses.
Human being are so vulnerable. Such human errors are natural thing, too. But I want myself to be unnatural.
Did I write in one of my previous posts as follows?
"When such a big drawdown happens, traders are also tested."
6.21.2012
6.19.2012
#1
Recently, my account running Wallstreet Forex Robot got big losses. No worries. Honestly, I was mentally prepared because I knew such losses can happen according to my backtests. If you are patient enough, it's gonna get recovered somewhere in the course.
However, what surprised me the most was the performance of NumberOne. After one month, it doubled my account. Sounds really crazy, but true. Now, I'm wondering if I should keep running other EA than NO?
SteadyOnFx and its colleague trader called TheProTrader have introduced two institutional brokers exclusively available to NO customers, which is a big plus, too. For this type of tick scalper, the path to the future normally gets narrowed, but it seems the guys at SOFX has still been exploring another path to go.
Is the future really promising? I hope so!
However, what surprised me the most was the performance of NumberOne. After one month, it doubled my account. Sounds really crazy, but true. Now, I'm wondering if I should keep running other EA than NO?
SteadyOnFx and its colleague trader called TheProTrader have introduced two institutional brokers exclusively available to NO customers, which is a big plus, too. For this type of tick scalper, the path to the future normally gets narrowed, but it seems the guys at SOFX has still been exploring another path to go.
Is the future really promising? I hope so!
6.09.2012
Wally Custom Settings
Some people asked me to share my settings on Wallstreet Forex Robot. Frankly, I can't share my personal settings with others. Some may think that I'm mean, but whatever you say, I don't care. It's a giving, not sharing, because I'm not given anything in return.
Instead, I can give you very useful tips that can potentially turn into gold for you.
Ask yourself if you truly want to earn serious amount of money in a long run and you are mentally prepared for it. If the answer is yes, ask yourself again if you are truly willing to put your effort toward your goal. If the second answer is yes, too, then proceed with the next steps.
1. Obtain years of history data. It'll cost you, but compared to what you aim to get in future, it's not so expensive.
2. Do backtests using several potential pairs with various settings. It's daunting and will take so much time and effort, but again for the money you get in years, your effort may be a necessary up-front investment.
3. Run the settings you got in a real live environment and wait for the account to survive worst drawdown and grow like you saw during backtest.
4. Go live. Be confident. Wait for a couple of years. (I'm at this stage)
That's it. If you strictly follow those steps above, you won't regret for what you've done.
Instead, I can give you very useful tips that can potentially turn into gold for you.
Ask yourself if you truly want to earn serious amount of money in a long run and you are mentally prepared for it. If the answer is yes, ask yourself again if you are truly willing to put your effort toward your goal. If the second answer is yes, too, then proceed with the next steps.
1. Obtain years of history data. It'll cost you, but compared to what you aim to get in future, it's not so expensive.
2. Do backtests using several potential pairs with various settings. It's daunting and will take so much time and effort, but again for the money you get in years, your effort may be a necessary up-front investment.
3. Run the settings you got in a real live environment and wait for the account to survive worst drawdown and grow like you saw during backtest.
4. Go live. Be confident. Wait for a couple of years. (I'm at this stage)
That's it. If you strictly follow those steps above, you won't regret for what you've done.
6.07.2012
NumberOne After Half a Month
I'm convinced that NumberOne, or NO for short, is one of rare winning EAs out there. Like many other spike retracement traders, NO faces random slippages and errors, however, in a long run (still half a month though), it conquered those obstacles and brought its users constant profits.
The only thing is; you must be selective about brokers. It seems it works fine with FXPRIMUS and Pepperstone Razor, however, in one of my bold attempts, I've tried to run it on FXPIG, a broker people says good for the similar tick scalper. The results were still indecisive, but after half a month the equity is just a sequence of ups and downs due to so many and too much slippages.
A good news is SteadyOnFx and one of its users called TheProTrader have worked together to introduce exclusive institutional feed to NO users, and the broker is fully regulated. Earning more than decent amount of money with an EA is a dream life for every EA traders I believe. With institutional brokers, it could be highly possible as with those brokers, the ceiling is extremely high and liquidity never dies. And it may come to true with NO. We'll see how those steps turns out to be.
The only thing is; you must be selective about brokers. It seems it works fine with FXPRIMUS and Pepperstone Razor, however, in one of my bold attempts, I've tried to run it on FXPIG, a broker people says good for the similar tick scalper. The results were still indecisive, but after half a month the equity is just a sequence of ups and downs due to so many and too much slippages.
A good news is SteadyOnFx and one of its users called TheProTrader have worked together to introduce exclusive institutional feed to NO users, and the broker is fully regulated. Earning more than decent amount of money with an EA is a dream life for every EA traders I believe. With institutional brokers, it could be highly possible as with those brokers, the ceiling is extremely high and liquidity never dies. And it may come to true with NO. We'll see how those steps turns out to be.
6.01.2012
Tuition
I'm currently running three EAs.
1. NumberOne from SteadyOnFx: I never imagined that this one could work so well on a live account. In my past experience, this type of extreme scalpers worked only on demo.
2. Wallstreet Forex Robot: So many people will not believe that I'm making constant profits with this EA, but I do. EU and GU are the best pairs to trade, but I use my own settings to make the most of it.
3. Forgotten EA: I recently started using a very old EA that everybody already threw away and forgot its existence.
I think that the easiest way to lose your money is; just jump in every newly-released trading product. Because probably more than 95% of the products you encounter can't fulfill what they promised to achieve. So you are most likely to make the vendors rich, not yourself.
Probably, most of experienced traders had followed the same path, and spent so much money on crappy products. In this forex world, it's called "tuition." I paid a lot of tuition.
While I can pretty much confirm jumping in any newly released products will kill your bank deposit, it's also true that without trying those products, you'll never be able to find a rare good one. But I am recently thinking to stop paying tuition. If those 3 EAs above work as intended, I'll definitely graduate in three years. I really want to.
1. NumberOne from SteadyOnFx: I never imagined that this one could work so well on a live account. In my past experience, this type of extreme scalpers worked only on demo.
2. Wallstreet Forex Robot: So many people will not believe that I'm making constant profits with this EA, but I do. EU and GU are the best pairs to trade, but I use my own settings to make the most of it.
3. Forgotten EA: I recently started using a very old EA that everybody already threw away and forgot its existence.
I think that the easiest way to lose your money is; just jump in every newly-released trading product. Because probably more than 95% of the products you encounter can't fulfill what they promised to achieve. So you are most likely to make the vendors rich, not yourself.
Probably, most of experienced traders had followed the same path, and spent so much money on crappy products. In this forex world, it's called "tuition." I paid a lot of tuition.
While I can pretty much confirm jumping in any newly released products will kill your bank deposit, it's also true that without trying those products, you'll never be able to find a rare good one. But I am recently thinking to stop paying tuition. If those 3 EAs above work as intended, I'll definitely graduate in three years. I really want to.
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