leeb77 Posted July 19, 2011 Report Share Posted July 19, 2011 Hi everyone As a thank you for all the great shares on this site I would like to share what I have learnt from over 10 years of very hard work studying the markets and trading systems and indicators as well as custom programming many of my own. Please don't underestimate what I'm saying just because I'm not sharing a system - the key is to develop one which suits your own personality and many of the commercial systems (especially Metatrader) are curve fitted or don't work as backtested - trust me this comes after thousands of hours of live trading and backtesting. I think what I am discussing here can save the newbie at least five years in experience and lots of lost capital. The Metatrader tester is fundamentally flawed. I can post some results which show a $10k account going to millions in months, yet in reality it won't work live. However Metatrader is a useful trading platform, I would just strongly recommend backtesing on another platform to verify. OK so that's part one... if I see a few people appreciate what I'm offering and click on thanks in my profile I will share some more, this really is gold if you can trust what I'm saying - I have spent thousands of hours learning the hard way... hope to save some of you guys that trouble. learningfx, tradershare, Freddie and 25 others 28 Quote Link to comment Share on other sites More sharing options...
freddy Posted July 19, 2011 Report Share Posted July 19, 2011 Although not a newbie, I have an open mind and love to hear about success stories. Knowledge is always welcome. Please share what you want to share. Thanks Quote Link to comment Share on other sites More sharing options...
CiDER Posted July 19, 2011 Report Share Posted July 19, 2011 Thanks for sharing your experience. :D How are you backtesting on another platform? Quote Link to comment Share on other sites More sharing options...
⭐ musketeer Posted July 19, 2011 Report Share Posted July 19, 2011 Hi everyone As a thank you for all the great shares on this site I would like to share what I have learnt from over 10 years of very hard work studying the markets and trading systems and indicators as well as custom programming many of my own. Please don't underestimate what I'm saying just because I'm not sharing a system - the key is to develop one which suits your own personality and many of the commercial systems (especially Metatrader) are curve fitted or don't work as backtested - trust me this comes after thousands of hours of live trading and backtesting. I think what I am discussing here can save the newbie at least five years in experience and lots of lost capital. The Metatrader tester is fundamentally flawed. I can post some results which show a $10k account going to millions in months, yet in reality it won't work live. However Metatrader is a useful trading platform, I would just strongly recommend backtesing on another platform to verify. OK so that's part one... if I see a few people appreciate what I'm offering and click on thanks in my profile I will share some more, this really is gold if you can trust what I'm saying - I have spent thousands of hours learning the hard way... hope to save some of you guys that trouble. Do not know what you are going to share but at least I do agree 100% with what you said. And will quote Freddy as well: "Knowledge is always welcome. Please share what you want to share. Thanks" Thanks! Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 19, 2011 Author Report Share Posted July 19, 2011 Appreciate those who clicked on the 'Thanks' button, please continue to do so if you appreciate what I share. Regarding the posts above: Freddy: I feel what I have learnt is also very valuable to intermediate/advanced traders as well as newbies so newbies aren't the only audience I hope to address. CiDER: Thanks for all your great shares, appreciate all you do for this forum and I've clicked your Thanks button in the past. Regarding backtesting this is a large part of what I'm saying regarding many thousands of hours to learn - basically I was using Metatrader and learnt a lot about how the strategy tester only goes down to 1min bars and uses fractal interpolation for the rest, this has shown me some of the results can be misleading. I've recently started using Sierra Charts which has more extensive (and to tick level) backtest facilities for a very reasonable price. I still use Metatrader to trade but need backtesting to be confirmed by another means. I also use MultiCharts. Torres96, deanlpl and CiDER 3 Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 19, 2011 Author Report Share Posted July 19, 2011 another important lesson - always backtest over a long period of time, eg: for a system to qualify I test with a least 3 or 4 year backtest on MT4 then right back to 10 years. I will then verify at tick level. Something else: How do you make your systems when market conditions change? Eg: Sideways to Trend etc.. this is why most systems fail over the long term and many are curve fitted. CiDER 1 Quote Link to comment Share on other sites More sharing options...
dannydon786 Posted July 20, 2011 Report Share Posted July 20, 2011 Leeb77 - can you download your trading system for the rest of us to that we can contribute to it...thanks Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 Hi Dannydo786 - you will never feel satisified trading someone else's system you have to develop one using your own style and working time possibilties / time zone etc.. you can take the building blocks from this thread which have taken me many years to do so and I will try to answer any questions. Also consider if you are using trailing stops etc.. your backtest needs to be very accurate as the direction (intra bar movement) means that the trail may or may not have been successful hence my mentioning tick and accurate backtest platforms. Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 Always forward demo test a system before going live no matter how good a backtest appears! Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 This point alone can save you thousands Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 Guys please keep clicking thanks, I always try to do this why I learn something from a poster. Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 Also consider carefully this very important point which is another reasons many EA's don't work long term: Indicators are just an abstraction of price, price is the purest element to trade. CiDER and ⭐ musketeer 2 Quote Link to comment Share on other sites More sharing options...
CiDER Posted July 20, 2011 Report Share Posted July 20, 2011 The problem with using another platform is converting mql code. I use backtesting just to test EA's functallity and foward test for results. Are you making money trading manually or auto? At this point the more testing I do; I'm starting to realize that automated trading just doesn't work. Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 CiDER - yep many valid points there, I wouldn't go as far to say as automated trading doesn't work but it is so important to get a accurate backtest, what often happens is a backtest looks great - especially in Metatrader, you go live with it and it doesn't work out, if a strategy is succesful manually there is no reason it can't be automated but backtesting is key. I appreciate the problem of converting MQL code, what I suggest is take a simple strategy, eg: Moving Average Cross and backtest on Sierra or MultiCharts or another tick accurate platform, look at the optimal values and use these in MetaTrader with the same basic strategy. Simple systems really are the way to go for long term profits. Price action is key. I use a combination of manual systems and automated trading, I would love to automate my manual system but coding is too complex even with my background in this area. Diesel 10 and CiDER 2 Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 Appreciate everyone clicking the thanks button, please continue to do so to support me, great community here. Freddie 1 Quote Link to comment Share on other sites More sharing options...
⭐ johnbest Posted July 20, 2011 Report Share Posted July 20, 2011 (edited) Dear leeb77, Nice posts.... But do you know one thing.... you can drive horse upto the water NOT into the water... :D To drink or not to... is to be decided by the horse.... Now-a-days, the era is of fast food. So who will cook the food...? :D when the food is readily available ... :D Nice job... you are doing a nice job.... :) Keep it up.. dear... :) But a request... sum up all the thoughts and post them ... Bottoms up will be helpful.... otherwise your efforts will go in vain... Have a nice day JBest Edited July 20, 2011 by johnbest Quote Link to comment Share on other sites More sharing options...
alten91 Posted July 20, 2011 Report Share Posted July 20, 2011 Just wondering if you are more worrie about getting "thanks click" rather then sharing something valuable, good trading! Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 Alten91: If you don't see the value in what I've shared you may have to learn the lessons the hard way from the markets... just appreciate people showing thanks as I do to everyone recpirocally also. JBest: Thanks for the feedback but if I shared everything at once it wouldn't be digested. OK guys next - how do you make your strategy last over the long term? Well you could try optimising an EA for situations when a certain criteria is met - eg: filter that previous price bar has to be a certain length, or code in Average True Range for TP and SL levels, I have found that fixed TP and SL don't work over the long term as they don't adapt to market volatility. The info right there could cost you thousands to learn the hard way, please digest it and give it some consideration. Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 20, 2011 Author Report Share Posted July 20, 2011 If you're thinking of using any indicators based on volume in MT4 or the spot forex market be very wary as no true centralised volume exists you may want to look to the futures markets Quote Link to comment Share on other sites More sharing options...
⭐ johnbest Posted July 21, 2011 Report Share Posted July 21, 2011 JBest: Thanks for the feedback but if I shared everything at once it wouldn't be digested. Dear leeb77, All of us have great appetite... we have digested huge volumes of books :D Even our HDD do have the same :D Also, in broken parts wont work much... Take time to write your thoughts in MS Word or any editor of your choice. Then post them in parts here ... If you do this, won't need to ask for Thanks you will get them... Its upto you now... Have a nice day JBest Quote Link to comment Share on other sites More sharing options...
leeb77 Posted July 22, 2011 Author Report Share Posted July 22, 2011 One of the greatest and least appreciated aspects of trading is risk/reward. It is essential you can calculate an exit in advance (eg: a target) and have an exit (stop) this target (should be support/resistance) should be at least twice the stop CiDER and Diesel 10 2 Quote Link to comment Share on other sites More sharing options...
⭐ musketeer Posted July 29, 2011 Report Share Posted July 29, 2011 Hi there, Do you know this website? Is it worth to try and invest your money? http://forexclubinc.com/index1.php?lang=en Thx free advertising? Quote Link to comment Share on other sites More sharing options...
soundfx Posted July 30, 2011 Report Share Posted July 30, 2011 Press the "report" button musketeer whever you see advertsing like this - the mods will normally act swiftly to delete these characters from the forum. This guy has made 3 posts all referring to the same site. As for leeb77 - what's happened to these gems of knowledge? Is that it lol? ⭐ musketeer 1 Quote Link to comment Share on other sites More sharing options...
skid-z Posted August 1, 2011 Report Share Posted August 1, 2011 (edited) leeb, It's great that you choose to post to help people here, but most of your posts are simply regurgitated info that should be common knowledge to anyone seriously pursuing a career in trading. Example: leeb77 wrote One of the greatest and least appreciated aspects of trading is risk/reward. It is essential you can calculate an exit in advance (eg: a target) and have an exit (stop) this target (should be support/resistance) should be at least twice the stop By all means keep posting, but what you are posting is more cliche-like common sense than learned experience... No disrespect intended. I find myself being moderately successful at forex trading after 5 years of learning and making many mistakes. I would be interested in having you tell us what you find to be the greatest challenge in maintaining your own success on a daily basis. Surely in a profession such as this the learning never stops. Edited August 1, 2011 by skid-z hermanhess, freddy, Banner and 1 other 4 Quote Link to comment Share on other sites More sharing options...
JuanPablo Posted August 18, 2011 Report Share Posted August 18, 2011 true. curve fitting is an issue.... Quote Link to comment Share on other sites More sharing options...
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