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if trading is this much simple why trders losing money

saambasp

Member
hi friends,
we have many indicators to trade in mt4 plateform.many indicators effectively shows where to buy and where to sell.
but why so many traders fail to win money in markets.i have seen many people learn how to trade ,they mostly also loosing money.
whats wrong with indicator trading.
in my observation
1.stop and reverse using candle close.
this method depends on market moves if trend market is there most wins ,if range markets many stoplosse
2.fixed stoploss and take profit
this method depends on first wins.if big trends in the market we feel
3.fixed stoploss and trailing stop
this method purely depends on our fate,some times our trailing stop hits then big trends
4.martingale
this method. if failure increase lot size.it is some time dangerous.
forexample simple trading method
cci trading: signal line crossing zero line from down it is buy
signal line crossing zeroline from up it is sell

SO IS THERE ANY LOGIC TO MAKE SIGNAL TRADING PROFITABLE.PLEASE SOME GENIOUS,DESCIPLINE TRADERS SHARE THEIR IDEAS HERE
 

krish

Member
U R RIGHT
I HAVE BEEN RESEARCHING AND DOING MANY DEMO TEST AND AFTER THAT IAM RUNNING MANY EA'S ON MY LIVE ACCOUNTS
VISIT MY POST
:)
 

stovedude

Active member
The main problem with indicators is the fixed period setting, because you are expecting the trend to change in that many periods, which it obviously never does, so you check another period that looks better, but that doesn't work for the next run very well. What you get is lag, divergence, and a whole lot of headaches. Indicators need to be built to be adaptive for each trend, which presents another mind-boggling problem. I've been thinking about this problem for a long time. How to fix? I have studied the idea about increasing the period setting as long as price continues to trend, and then starting again with a smaller period when the signal has completed. Perhaps this would be a good use for zigzag, for counting how many candles since the last zigzag point. I've been thinking about building an indicator that automatically calculates this, just to see what it looks like. I would start with CCI and stochastics and other good standard indies.
 

saambasp

Member
The main problem with indicators is the fixed period setting, because you are expecting the trend to change in that many periods, which it obviously never does, so you check another period that looks better, but that doesn't work for the next run very well. What you get is lag, divergence, and a whole lot of headaches. Indicators need to be built to be adaptive for each trend, which presents another mind-boggling problem. I've been thinking about this problem for a long time. How to fix? I have studied the idea about increasing the period setting as long as price continues to trend, and then starting again with a smaller period when the signal has completed. Perhaps this would be a good use for zigzag, for counting how many candles since the last zigzag point. I've been thinking about building an indicator that automatically calculates this, just to see what it looks like. I would start with CCI and stochastics and other good standard indies.

hi SD,
nice idea go ahead.
iam trying to solve this problem with grid-hedge-cycle strategies.as of now my idea is unclear but iam working hardly n this.
as of my under standing of your idea ,here it is
ind=cci14
1.we look signal in h4 if it is in buy mode we look h1.when h1 gives buy signal.we enter trade in h1 ,we close this trade when h4 gives opposite signal.
am i right?
 

rsqzjek

New member
Along that line of thinking.....
I have been thinking that as a move or trend develops the odds of its growing stronger or weaker change at any given time. Many variables go into calculating those odds like average vs. actual volume at the time, and trend direction or lack of it, periodic ranges, harmonic cycle averages etc. etc. etc. Everything that we know affects a pair at a particular time could be quantified to a variable of overall risk. If we can identify it and quantify it we can use it to adjust our trading strategy. If we scale our entrances and exits based upon the odds of future movement and use indicators as switches to add or remove certain market influences (such as trend vs. consolidation or volume and volatility changes) from our odds calculations, then I think that we can adapt to the changing market conditions better. I don't pretend to know how to do what I propose but is not all gambling based upon the odds. Most EAs endeavor to trade during times when odds are more predictable and then hope for the best with good money management.

I would like a risk section in my EAs that scale me into breakout trades as the odds of a breakout increase and scale me out as the move matures, Or scale my consolidation EA entrances and exits again based upon an odds calculation. If contributions to this risk calculation were based in part upon a successful indicator such as the one you describe then all the better.

Oh, I also want low DD and a high win %, and I want it tomorrow:)

Thanks for listening!
 

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