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Old 03-16-2007, 10:48 PM
ra300z ra300z is offline
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I'd like to add a couple of tenets and one other point of view.

Tenet #1 -- Fundamental trading requires a stoploss, which can be quite small. You are guessing where the price will go by anticipating news, politics, etc. So the news is wrong, or a political event doesn't materliaze, you get stopped out, no big deal.
Technical trading requires a large stoploss. It's too easy to get stopped out frequently and without knowledge of fundamentals (eg. NFP, CPI, etc), it is IMPOSSIBLE to know where the price will go.

Tenet #2 -- Optimize for a 4.00 profit factor, hope that you get a 2.00 on a live account.

My average stoploss is 200 pips across the 4 majors + usdcad. 200 pips EACH. That's a 1000 pips I need to cover if the price goes the wrong way and I have 5 positions open (rare)

My other point of view... I don't know how anyone can successfully trade an EA on a short timeframe. Too much static. It may be possible. I don't know. But with a D1 or H4 strategy, you're really trading a long term trend. Long term pressure on pricing. The large stoploss prevents stopouts at news time. And when a price spikes, it comes back, it aways does.

Last edited by ra300z; 03-16-2007 at 11:14 PM.
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