Some advises on building a new trading system

[dyd]

Hi,

I have been trading for a couple of month and earn decent profits using basic knowledge through my self-education on Babypips and huge time investment. I have also learned the basic of MT programming languages and planning to build my own auto trading system.
Would you mind sharing some advises how I should start, which education materials I should look at and your personal stories on creating your own profitable trading system? Really appreciate your thoughts

 

[Pharaoh]

First and foremost, all trading systems need to have strict risk management built in. This should help:

https://www.forexpeacearmy.com/fore...2272-how-manage-risk-while-forex-trading.html

Some EAs use "hidden stops" so that the broker can't see the SL and stop hunt. The problem with this as the only SL is that it's possible to lose your connection to the broker. Placing a hard stop 25-50 pips beyond any hidden stop should make it far enough to avoid stop hunting while still preventing a margin call if connectivity is lost.

You may also want to read through Sive's lessons in Forex Military School:

Forex Military School | Complete Forex Education by a Pro Banker - Forex Peace Army Forum

He's covered the use and misuse of many common indicators.

 

[dyd]

Thanks for your reply Pharaoh, great articles on Risk management.

I am going through the forex military school materials at the moment. However, I would definitely need some examples how people create a new EA, what are the steps, actual EA examples, how to test and how to apply etc?

First and foremost, all trading systems need to have strict risk management built in. This should help:

https://www.forexpeacearmy.com/fore...2272-how-manage-risk-while-forex-trading.html

Some EAs use "hidden stops" so that the broker can't see the SL and stop hunt. The problem with this as the only SL is that it's possible to lose your connection to the broker. Placing a hard stop 25-50 pips beyond any hidden stop should make it far enough to avoid stop hunting while still preventing a margin call if connectivity is lost.

You may also want to read through Sive's lessons in Forex Military School:

Forex Military School | Complete Forex Education by a Pro Banker - Forex Peace Army Forum

He's covered the use and misuse of many common indicators.

 

[Pharaoh]

For actually creating an EA, you would need to learn the MQL programming language. Supposedly, MT5 allows simple ones to be created without too much effort. The issue is that for any EA to be useful, you need to build in some pretty complex filters to keep it from blindly launching trades when the market goes crazy.

 

[Patrick Robinson]

Hi dyd. If you are using MT4 go to Navigator - then Expert Advisors. There are two EA there ready to apply to charts. I have not been able to get either to make profit.

Also under these there is a link to more EA. Code is there for you to use or alter in Meta Editor. If Meta Editor is not showing (it has yellow icon) you need to go to the tool bar that has market watch in it and select it using insert and remove buttons. Before editing its a good idea to save the original code in an email as it is hard to remember what settings have been changed.

To apply new code the MT4 needs to be shut down and opened again, very time consuming!

Drag onto chart and release mouse. Smiley face means EA is loaded and ready to open trades.
USE A DEMO ACCOUNT>until happy with coding. Big loss may occur.

Right click chart with EA applied and go to Expert Advisors.
Select Strategy Tester. Open Expert Properties (bottom right).
Check parameters, adjust if necessary.

tick use date from - to ( use small periods of time to begin with to see if EA is working).
tick visual mode (slide operates fast or slow progression)
start

the indicators used in EA do not appear on the "visual chart" until the test has finished.

Some EA are not compatable with 5 digit brokers.
Also some EA are not ECN compatable.

Good luck and I hope you have a lot of patience < I smile here>.

 

[candle7779]

Hi everybody. Now I am going to choose a best strategy for trading. May be someone wants to tell some variants. Some traders tell that scalping is good when you open close it to profit and start a deal quickly . But it is not very convenient, because I lose much more money than earn if the price goes against me. Is it a good idea to open long? But in small volumes. What could you tell about it or have better variants.
Thanks a lot.

 

[FringFX]

you really have to try out a few. don't take their word for it easily, as scalping could be good or bad for you. you'll never know until you try. try it on demo.
if it does not suit you, you might be better off trading on higher timeframes.

 

[Pharaoh]

If you do find scalping profitable on demo, make 100% certain to check the broker's TOS before taking it live. A lot of bucketshops have rules against it buried in their trading terms - and will only enforce those rules when you try to withdraw profits.

Even a good broker will have more slippage and requotes in live than demo. I'm not saying you can't make money with a good scalping system (manual or automated), but I do say that the demo to live transition on such a system can lead to big changes in the profitability.

 

[pipdreaming]

Hi,

I have been trading for a couple of month and earn decent profits using basic knowledge through my self-education on Babypips and huge time investment. I have also learned the basic of MT programming languages and planning to build my own auto trading system.
Would you mind sharing some advises how I should start, which education materials I should look at and your personal stories on creating your own profitable trading system? Really appreciate your thoughts

Just a quick question, why did you read about MT programming? I created a lot of EA but im still more profitable with simple manual trading

 

[FringFX]

perhaps, pipdreaming, you are more suited to manual trading even though you are gifted in programming.