I was looking at FOREX historical hourly data and it listed the open, high, low, close for each hour for the past few yrs. It seems as though if you could figure out a way to program a robot to buy at the exact hour (for example 13:00 on the dot) and then program it to sell at the exact moment that the price goes one tick above the buy price, you should be able to make a consistent profit. Is this possible. I am a newbie to forex so please don't get too technical with any explanations. Thanks for the advice in advance.
Newbie with another question
- Thread starter aubie
- Start date
Pharaoh
Brigadier General
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- 20,310
Good idea, but there are a few flaws that ruin an otherwise worthy concept:
1. If a solid pattern of price always moving 1 pip in a certain direction at a certain hour was established, once it became known and too many people took advantage of it, price action in the market itself around that time would change.
2. Spread. Assuming you are talking about a tic that's 1 pip in your direction, you would need spread (and commission, if applicable) to be less than 1 pip.
3. Assume it's really a "secret" and you can get 0.5 pip spread. What happens to your trade on those rare days when price runs hard against your position? If you keep your SL too tight, even potentially profitable trades could be closed at a loss. If too wide, the sum of losses will be larger than the sum of profits.
4. Slippage, requotes, and no fills.
1. If a solid pattern of price always moving 1 pip in a certain direction at a certain hour was established, once it became known and too many people took advantage of it, price action in the market itself around that time would change.
2. Spread. Assuming you are talking about a tic that's 1 pip in your direction, you would need spread (and commission, if applicable) to be less than 1 pip.
3. Assume it's really a "secret" and you can get 0.5 pip spread. What happens to your trade on those rare days when price runs hard against your position? If you keep your SL too tight, even potentially profitable trades could be closed at a loss. If too wide, the sum of losses will be larger than the sum of profits.
4. Slippage, requotes, and no fills.
LoRio
Sergeant
- Messages
- 484
What Charts were you looking at and what is your timezone.
Possibly you spotted some NZDUSD AUDUSD GBPUSD action around 22:00 GMT that is consistent (most times) toward the upside ,but not always giving big rallies.
If yes , that is the rollover swaps effect.
What are swaps? , I cant coin the exact reason they exist but lets say you buy New Zealand dollar at that time , you will receive (if your broker shares them) a positive swap in your account.
Most consistent moves are on Wendsday cause the swap is (most times) triple in size than Mon-Tue-Thu[no swaps on friday].
As there are positive swaps , there might also be negative swaps.
Your broker has no issue with you hunting swaps cause they get a piece (the larger) of the pie themselves , and their Liquidity providers.
If that story amazed you , open up a chart of USDHUF find a wednesday at 22:00 GMT.
Other than swaps you could be interested in times specific markets open.
Are you in Canada , or in Honolulu ?
RahmanSL
Major
- Messages
- 2,939
...huh?...you mean your robot doesn't even do that?????
.....hmmmm....my R2D2 (after cleaning my house/dishes/clothes/,make beds of course) not only do that, but watches Bloomberg, National Geographic, CSI, and even "The Voice" programs.......all the while trade my forex account for me too.....suggest you upgrade your robotI was thinkong the same thing when i was in the beggining... it's so esay and yet nobody thought of it??No way..as it turns out is next to impossible, slipagge and spreads were the things that ruined my plan... plus all the stuff pharaoh said..
i suppose these "superficial tricks to beat the system" are what makes us newbies
plus all the stuff pharaoh said..i suppose these "superficial tricks to beat the system" are what makes us newbies
ilearn2t
Sergeant Major
- Messages
- 711
Hello aubie
1) You can use the tools on the MT4 platform to give you more data history, but having too much data might cause your platform to freeze, so only attempt this if you fully know what you are doing.
2) You can add a simple code to any EA so the "given" order will open within the next tick of any "given" time (normal conditions allowed).
3) You can place a "TakeProfit" at the brokers minimum amount allowed usually 10 pips or more.
Good luck
Liz
1) You can use the tools on the MT4 platform to give you more data history, but having too much data might cause your platform to freeze, so only attempt this if you fully know what you are doing.
2) You can add a simple code to any EA so the "given" order will open within the next tick of any "given" time (normal conditions allowed).
3) You can place a "TakeProfit" at the brokers minimum amount allowed usually 10 pips or more.
Good luck
Liz
LoRio
Sergeant
- Messages
- 484
...huh?...you mean your robot doesn't even do that?????
Sounds like your robot runs on coffee.
RahmanSL
Major
- Messages
- 2,939
Sounds like your robot runs on coffee.
Nope....I think it runs on plasma energy or something like that.....I run on coffee and, daily, R2D2 makes tons of that stuff for me to keep me going
