View Single Post
  #20 (permalink)  
Old 12-21-2007, 08:17 AM
mikkom mikkom is offline
Senior Member
 
Join Date: Oct 2007
Posts: 200
mikkom is on a distinguished road
Quote:
Originally Posted by Pip Trip View Post
Hey - you're thinking way too much now. Currency trading is far too simple than this. People don't become casualties in this biz b/c they don't and/or can't get the entries/indicators/trends/etc. right.

It's ALL discipline. (Oh, how many threads are on this subject in any given forum? Next to none!)

[..snip..]

My piece of advice to you would be to throw a MACD and perhaps 2 MA's onto a chart, be disciplined, use stop losses that have a purpose, use take profit areas that have a purpose, and do the same thing every single time you place a trade.
I have heard this comment millions of times but in my oppinion it's exactly the human factor that gives you edge against those "very disciplined" traders.

Why do I think this? It's against all the books and everything!

It's quite simple actually. If discipline and few indicators would be enough, there would be millions of EAs that would provide constant profits (well all of them probably!). EAs don't have problem with discipline, they are most disciplined than you can ever be. Therefore problem with discipline is removed from the problem when you have EA's.

And still nobody makes money with EA that only has couple of MA's and MACD.

Edit: uh and sorry for making out of topic replies.. I'll try a little bit on the subject too (a bit only) :-)

Stephen Wolfram has written a book "new kind of sciece" where he goes through his ideas on how to predict chaos or generate very complex structures that cannot be predicted by normal means easily (like liquid movements etc) with cellular automata, ie. small programs that act with each other. I haven't read the book very thoughly (it has been on my bookself for couple of years and it's THICK!) but I think there might be a point in his comments that you can emulate or predict some models with many small simple programs that communicate together.

Stephen Wolfram: A New Kind of Science

Forex would be a very good target for this kind of experiment because there are so many actors that it's probably impossible to find a common indicator for all the different scenarios, every scenario is a complex mixture of different aspects and outside influences.

What I'm talking is a bit like neural network without the normal neuron connection, more like a neural network where each node is a specialized unit.

And yes, I know wolframs theories are quite contoversial but there is some good points behind them too.

Last edited by mikkom; 12-21-2007 at 08:29 AM.
Reply With Quote