EA is for noobs.

Hai N Welcome

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Added on February 21, 2009, 10:48 pmagree with u.....like me hu hu... dont trust robot! for sure..

This post has been edited by jebonen: Feb 21 2009, 10:50 PM

Thanks all for the warmest of welcomes. (so obvious my 1st post? >_< )

Speaking of EA, my personal opinion towards it is total BULL-shit la. The automation you pay for can be done manually so why waste the moolah? Although it does catches the signal and whatnot pre-programmed, but it doesnt have human reflexes. God bless if EAs can differentiate losses and profits. They wouldnt help you cut losses early, or even pull your earnings higher, cause they wont reconsider other facts. No offense to any EA users, just blurting what I feel on EAs.

The look on UJ:
The end of Friday was something expected. The wave came in suprisingly early (was expecting Monday), but then again Friday's volatility isnt something we can predict. Checking back on my sources, the speeches and minutes will be coming on Monday 4pm (if calculations dont fail me) As the long-term trader I am, should be by Wednesday for the wave to finish Let's be patient dear traders ^^

I don't agree, EAs are for people who do not have the time to study and monitor the charts all-day long nor do they trade full-time. You ask why waste money on something you can do manually? Lol that's exactly what you're paying for, automation, that's kinda like saying why drive the car when you can walk.

You say EA doesn't have human reflexes, that's precisely where the strength of EAs lie, it doesn't have human emotions involved and strictly does what it's programmed to do. We all know humans are prone to errors and tend to allow our greed and biases to drive us away from our strategies, EAs strip that away.

If all you do is strictly TA only, where you look at a few indicators or a few signals to make your trading decisions, an EA would do it much more reliably than you.

Of course i'm not saying you should blindly buy some EAs online and let it do all the work, you gotta understand the fundamentals first and what system an EA is using, it's best if you trade manually yourself first and create an EA yourself that automates your routine reactive trades.

Which i do not have time for yet, sigh, i borrowed a TA book for over 2 months now and haven't had time to touch it yet, i give myself one month to read it.

I strongly disagree, EA doesn't discount the nature of a pending news release. As we all know fundamentals play a huge role in the underlying trend, while EA only focus on daily tiny flauctuations. That's how EA makes money for you. However, if there's a news that is very bad for your trade, you might get caught and lose tonnes.

It is true however that EA does not have human emotions but if EA is so good y is there so many negative remarks about EA? If it can provide definate returns then everyone will use it to trade because it earns money for you while you are sleeping. EA as adam mentioned does not discount the fundamentals. A successful trader includes both technical and fundamentals into trades that he/she makes. EA only includes one part which is technical. Fundamentals decide where the trend goes while technical decides where to enter and where to exit.

That's why i said you should have an EA that automates your routine reactive trades, i never talked about fundamental analysis, of course i understand that ultimately the price of any security is determined by the fundamentals, but the discussion was strictly on the merits of EA in technical analysis.

Also a good EA should be able to know when the movement is against you and cut losses, then again i'm not an expert in this since i've never used one.

Like i said you should never blindly get an EA and expect it to do wonders for you without understanding the strengths and limitations of the EA. You should always study an EA and know what system it's using and what strategies it's taking, after all what is EA but an automated trading system based on certain rules and criteria? It is just like how you trade manually based on certain rules and criteria.

And whether there are negative remarks about a particular EA have no bearing on the merits of EAs in general, if one understands what an EA does he would know it wouldn't guarantee insane amount of profits.

And of course all this discussion is strictly on TA only, i'm not talking about FA.

There are 2 types of EA, one is fully auto and another one is half auto. Fully auto EA will trade for you whenever the indicator meet certain requirements. Half auto requires you to manually key in certain requirement, eg price, whenever the price hit your target, the EA will trade for you ONLY for that particular session. Half auto might be useful to be frank, but still I don't use it.

Yes, you are not talking about FA, but i am pointing out the flaw of using a purely technical based EA. Even if you set a stop loss, what if the news is so bad enough it dropped 150 pips within seconds, executing your stop loss immediately at 150 pips although you set it at 50 pips SL. After 5 minutes, the pair rebounded to your -50 SL. Thats the danger of allowing full automated trades. Human judgement is still very important. It's like creating a fighter jet without pilots but do you think the liability is lesser than having a pilot flying the F16s? I doubt it.

Well trying one of the EA's and telling us how well it went is the best answer to our discussion. No backtest please. Without fundamentals, chances of winning on pure technical is hard

hm..little comment here...

I believe most who studied trading understands the need of a "working system". However, most believed, or thought that a "working system" is a set of indicators showing the trend and/or possible entry positions on the market (basically for TA only). Well, in my opinion, no matter what set of indicators one uses, it still lags behind the price action. Thusfar, there's still no programmable logic that could understand the formation of a particular candlestick/bar hence translate its meaning towards the market sentiments; most also ignore the importance of historical price action. IMO, a "working system" should consist of analytic tools to gauge and understand the market, rather than indicators telling the "history" of price movements.

Like many sifus around the world will tell you, FOREX ain for kids; especially kids without FA knowledge, and claims to be from investment banks.

GU to 1.30!!!! LOL...i'm having a laugh....


This post has been edited by AdamG1981: Feb 22 2009, 11:57 PM

Well it surely not for kids but you gotta start somewhere.

So, what trading system you recommended for daily chart as I only make 2 trade a day for practice. Do AshFX Daily good?

Good morning, EJ H4 chart:





Short again?

This post has been edited by bulkbiz: Feb 23 2009, 08:16 AM

Yes, you gotta start somewhere, but better start from stocks. If you can master the charts for stocks, you can speculate on more complicated instruments like options, futures, and forex. But before anyone should jump into forex, he or she should read plenty of books and real live trading using 1000 units to gain experience. Demo, not my style because its fake money. When you are using real money, your mentality will change to defend your capital. That's when the real learning start.

FA + TA = Success with higher odds.

GU H4 chart:




If break, long? Stoch OB. Self inteprete

This post has been edited by bulkbiz: Feb 23 2009, 12:33 PM

lol, I know a lot of people who treat demo like playing games. but after reading alot of books on forex like Mark DOuglas, John Carter, John Murphy, Dr. k Tharp, Kathy Lien, and Steve Nison which all within this month (I'm a STPM grad with nothing to do 24/7) I have good grasp.

I treated demo like my own with only risking 1% of the 3k demo money. The only thing I lack here is experience. Is it really tough doing trading? After a month on demo, the I only got 3 profit with almost 15+ losses. It really suck.

Yes, is very good for you to use low margin. For me, i use between 0.3%-2%.

just sharing..


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What you guys think of this http://www.powerupcapital.com/ ? Who is this Kishore M?