jmca, if "speculation" is not in your manual trading, we'd all like to know how you manage to pull that one off?!
Now, I'm sure you cannot contemplate crossing a street with traffic in view, and not take every precaution against getting hit, because your senses tell you that it is speculation to even consider crossing that street, in that circumstance.
Placing your money in a bank, or in a buried box in the ground requires a certain amount of uncertainty, hence, "speculation," so even if you had the most reliable Forex Trade signal generator, it cannot exactly tell you that each recommended trade is completely assured a winner. That's human-level Life.
With a robot trader, programmed to reasonable levels of risk management, and yet able to overcome all the many factors that tell it that it will have to take Some Risk to make any trade at all, that robot EA's program will take the chance that the trade will go south, and lose at least some part of the account balance.
That's Life, and with the EA robot, it's still "Human" Life we're talking about. a Human wrote the robot's program.
I Have a small education in computing systems, how they interact-inter and intra-communicate, and some bit of programming as well, so I can specifically state to you that the single most relevant factor of safety a robot trader has is first the integrity of the attitude of the programmer, then his of her ability to define trading hazards, opportunities, and methodologies, and then to accurately proceed to create sections - objects - of program pieces that reflect those definitions in its decisions for placing, or not placing trades, and then how it manages opened trades.
Next time you use a signal to either hold, or place a trade, do youself a mjaor favor, like this;
1. Minutely dismantle the entire, step-by-step process that the signal generator used to derive its recommendation. (This process will include, but not be limited to; What was the mindset of the person creating the signal generator? - What criteria for allowing a set of currency pair data to be analyzed was used to initiate the examination?(I.e., did the signal generator, even if a human being, focus on all available pairs, or focus on just a select set of pairs, or, just one pair? - and, under what specific conditions of market parameters did that initial choice to examine the possible trade take place?
2. Assuming that your signal was a buy or a sell, i.e., opening a trade, how many sets, bits, and relative data elements were used to factor into the signal that you received?
3. After you have laid out that complete generating process, step-by-step, and there will be over 100, maybe 200 separate algorithms to render the more simple signals, you come to where You are involved in the decision to initiate a trade. Start here to determine each of the minuscule bits of your internal, external, and intra-ternal, if I may coin that term here, to accurately reflect all of your own factors to choosing to either go with the suggested signal, or not, and if you changed your mind, why, and if not, and you re-affirmed your choice to hold the trade, all the factors that caused your final decision.
4. when you have all the factors about your choice down, go find a dozen more that you left out! Yes, Really!!:-))
5. Go over tthe entire process, just as a good, trustworthy signal generator will do, and determine if you have left anything else out, and don't be afraid to accurately modify any, or most of your previous list!
6. when you are satisfied that all the details for both the signal generator and your decision to use, or not use are now defined, make your trade, and Hope it does not Go south!
7. since even your best effort is "Speculation," now go over the entire decision determination process again, just to try to catch any error(s) you may have included in yours, and the generator's choices, yes, even while the trade is still open, for you May Want to quickly terminate it, if you find a major flaw in the entire reasoning process!
8. Now, repeat all of the foregoing, as the next signal, and trade you receive and make, or don't, will be based on an entirely diffeerent set of criteria!
"Speculation"!!!
Get used to it!
Quote:
Originally Posted by jmca
Doesn't really help me find entry and exit points. I know that much. Not sure really what to use it for except pure speculation.
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