New Approaches to Creating EAs

Hi All,

My intro - Jump to next paragraph to This question.
As my name suggests I am a discretionary trader, and I have never actually used an EA. My personal opinion is that way too many traders in retail spend too much time searching for killer systems and not enough time actually trading. Some of the comments I read in those threads (I mean around FF) truly astonish me. Having said that, I sometimes get insights to the market that I wish I can code as a sign, but alasI am no coder and do not have the time/patience for it. I have a lot of patience to the forex market however, and that I absolutely fell in love with it over three decades ago, which gave me the patience to exchange demo accounts for more than two years before going live. Initially I focused on pure tech., but once I went I developed egies based on information out price action too.


My question to start this thread is all about different egies to risk-management in trading systems. Think about just taking trades at which a specific risk/reward ratio (SL/TP levels) is statically likely according to some further algorithm, and establish that as a sub-routine to get a huge variety of signal generators? Or only a few based round precisely the same logic because the algorithm. I am thinking something based round ATR and volatility indiors (indexes).

Additionally, does MQL4 have the ability to crunch data by any time-frame? For example, if you wished to count the gap of H minus L price, such as spread, every 10 seconds, and perhaps include volume to the mix? Would you want some type of external script like Perl for it?

And here's really a crazy idea: feed info from a very successful guide trader and use the computer to find correlations and consistencies inside all known data points, and code them. Update the information every 28 trading times and compare the new results, correlate them further, etc..
This was a joke. For a trader, I've got a very good sense of humour.


My expectation with this thread is it turns into a space where people can express their abstract thoughts about the behaviour of this market, and also how we might allow it to be applicable, and to generate ideas to discuss with other, more particular threads.

Michael

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Hi All,
My question to begin this thread is about different approaches to risk-management in trading egies. What about just taking transactions at which a specific risk/reward ratio (SL/TP levels) is statically probable based on some further algorithm, and build that as a sub-routine for a wide array of signal generators? Or only a few. I'm thinking something based around ATR and volatility indiors (indexes).

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Some like fixing the level but adapt over time to compensate to recent trading requirements.

Others utilize a factor to dynamically adjust the amounts to match the current market. ATR is one popular factor with this... but remember, you run the risk of that factor later becoming the weak link in a system, since today not only do you have to be concerned about your sign's edge fading away because the market fluctuations, but the variables ability to adjust risk fading away too.

In either scenario, the best way is what proves to be greatest over tens of thousands of transactions and also a time interval extending into years. Whatever you think is a better method of doing this, establish it first through statistics before committing to any 1 method.

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Also, does MQL4 have the ability to crunch data by any time-frame? For instance, if you wanted to count the difference of H without L price, such as disperse, every 10 minutes, and perhaps include volume to the mix? Would you need some kind of external script like Perl for it?

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Short answer, it's not simple, but yes.

Longer answer, you may make an array and fill it with all kinds of data gleaned in the quotes, then doing anything kind of organizations or surgeries you can dream of, all from inside MQL4.... Nonetheless, this isn't as easy as just referencing pubs and price levels on the chart your own EA runs atop directly, so expect to roll your sleeves up and get messy coding here.

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And here's really a wild idea: feed data from a really successful manual trader and use the computer to find correlations and consistencies in all known data points, and code them. Update the data every 28 trading times and compare the new results, connect them further, etc..
That was a joke. For a trader, I have a good sense of humour.


My hope with this thread is it turns into a space where people can express their abstract thoughts about the behaviour of the market, and also how we might make it relevant, and also to generate ideas to share...

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Good luck and good trading! https://www.cliqforex.com/attachments/1527232921.png

Thanks both over for responding so kindly. Codemeister, thanks for the link, I will read in depth once I get time tomorrow, it looks exactly the type of think I am talking about.
As I say, I am no coder, but I am convinced there must be ways for independent traders to make more powerful EA's than I have seen around forums so far.
Like trading itself, it's too easy to get bogged down trying to solve specific problems, as soon as a more general and intuitive response might be called for.
One thing I am convinced of is that earning good EA's only using MT4 is damned difficult!
While every indior has to have some kind of back-test, would not it be better to back-test the famous correlations of the real market first, before attempting to filter signs with standard indiors?
Everywhere on this excellent site I see traders with thoughts, desperately trying to find coders, and EA nuts desperately hoping to crack the old nut!

Micheal, you do need to read the article to enjoy the obstacles you are facing.

In terms of back testing, there has been quite a few good discussions in different threads about it. It is its own topic, but my feeling is that back testing has little value especially the way it is conducted with MT4. The information quality isn't good enough to expend much effort on and acquiring good data is a costly proposition. Your approach is somewhat different than I've seen discussed, but I believe it still requires quality data. Enough said.

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Discussing on this excellent website I visit traders with thoughts, desperately trying to find coders, and EA nuts desperately hoping to crack the old nut!

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Allow me to give you my view about the thoughts for automated trading egies I see. I've read lots of poorly composed, (not just lack of english skills) half thought out ideas. Some of them seem as though they took a few hours of research and threw their conclusions into a petition that took a few minutes to write. The rest are bunch of thoughts that are recycled variants of thoughts that have been proposed many times (instead of combining an RSI using a Stoichastic, they suggest using Heiken i having an RSI). Some of those couple, superior proposals I've read come from traders that don't recognize the difference between a manual (optional ) system and a really mechanical system. Perhaps we move in different circles or I've missed the wheat amoung the chaff. If it is possible to provide links to a few of the good proposals you have seen lately, it might give me some relief from the usual dreary stuff I see.

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And here is really a wild idea: feed data from a very successful guide trader and apply the computer to discover correlations and consistencies inside all known data points, and code them. Update the information every 28 trading days and compare the new results, connect them farther, etc..
That was a joke. For a trader, I've got a very good sense of humour.


My hope with this thread is that it becomes a space where people can express their more abstract ideas about the behaviour of the market, and how we might allow it to be applicable, and to generate ideas to discuss with...

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https://www.cliqforex.com/bitcoin-cr...ot-indior.html

You may want to read this thread to get an notion about what's possible, but more important what campaign is involved. This wasn't done in MQL4, but this is not to say it couldn't be or that his egy couldn't be adapted to the retail forex market.

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... lot of ideas that are recycled variants of ideas that have been proposed many times (instead of combining an RSI using a Stoichastic, they suggest using Heiken i having an RSI). Some of the few, superior proposals I've read come from traders who do not recognize the difference between a manual (discretionary) system and a truly mechanical system. We move in circles that are different or I've missed the wheat amoung the chaff. If you can supply links to some of the good proposals you have seen recently, it would give me a relief from the...

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Well you hit the nail on the head there, but I'm afraid I can not refer to any good ideas from current memory either.

The problem I'm having lately is where to loe good market feeds for certain sorts of data, like Non-Commercial positioning, and the capacity to aggregate different markets with - maybe not back-testing - but a regressive analysis with significance outcomes etc .

I understand that I was able to buy a Bloomberg Box, but they are expensive!

The internet FX community has come up to now, and there's more good info around than previously, but I haven't found anyplace that will take that next step.

ps. As a long time lover of Google that I have to mention. These guys are! They have squeezed out email, online video, Microsoft, information storage, online marketing, mobile progr, you name it, but their financial information is almost useless. That is my rant.