There are going to be a lot of letters in today's post, but if you want to start understanding the market a little better, I recommend reading carefully what I would like to talk about today.
Very often, especially in the last 2 weeks, I get a lot of unhappy messages from users.
All users are dissatisfied with the fact that the number of transactions ELM_EA is very small. Profits, too, are low. Account doubling as shown on my monitors does not happen in 1-2 weeks. User expectations do not coincide with the harsh reality of working in the market.
I'll be honest with you, I don't like the current market situation myself, but I'm absolutely calm and happy with all my results for the 2020-2021 trading year.
I perfectly understand, I am not an inventor of a magic program, which should print money. I am a programmer who has developed a unique strategy capable of systematically generating profits in the market.
If you believe that such programs that print money exist, then do not waste your time and do not read my post further...
But if you treat forex not as a gambling, but as a market, then you should be very interested to look at the statistics of any FCA broker from which you should see that more than 85% of retail traders in the market lose instead of make money. This information is reliable and this statistic can be trusted.
In other words, this means that 85% of traders cannot systematically earn in the market even 1% of profit in the reporting period.
Therefore, even if my algorithm earns 1% profit during the reporting period, it means that you fall into the same 15% of traders who managed to earn.
Most of the traders, among the 15% traded using martingale and similar very questionable trading strategies. Now almost any trading robot that is sold on the market operates using martingale.
The martingale algorithm is able to hold a positive yield curve, but not for very long. The longer we want our algorithm to be profitable, the less risk we set and eventually the profitability will be minimal. The profit/risk ratio is very bad. Martingale is a dead-end strategy. Its final result is known in advance. In addition, brokers know this and successfully manipulate against such strategies. There is no problem for a broker to cheat on a martingale. The client lost, the broker is satisfied.
So we can conclude that there are not many really profitable strategies. I think 6% of the market. All the rest either exchange of money (One month one trader won, another month another) 9% and 85% of those who feed the remaining 6% of profitable traders.
I always want my clients to understand the market as a market. It is not a game of chance. Forex is a foreign exchange market.
Here each price action has its own explanation, which is not always easy to understand. But there are certain patterns, the identification of which is a very big job. And in the era of digitalization of all information this has become possible.
You may ask how to predict the price movement?
My algorithm analyzes every tick of the price movement. It accumulates this information and compares it to the price behavior of 6 major liquidity providers. It understands what price each of the suppliers formed at a certain moment and under certain conditions. How the price reacted at that moment.
Based on the GOOGLE AI, the ELM_EA successfully identifies the pattern of price movement.
Weak patterns are very difficult to identify. Because the market is in a flat 60-70% of its time. The last 2 weeks we observe exactly this picture, almost a complete absence of transactions due to the flat.
But all moments of fast price movements, clearly identified patterns, always get to the training pattern ELM_EA. Even if the duration is 20-360 seconds.
Such tick patterns become the key sources of profit for the algorithm. This is not a martingale or technical analysis - this is the behavior of price at the moment. A much more accurate and sophisticated method of analysis.
We do not need to use martingale for successful trading. Why not?
In case the signal did not come true, the algorithm simply closes the trade. The algorithm clearly knows what conditions it expects. He does not need to wait and hope that the price will suddenly turn around and go in the right direction.
Smart risk management system ELM_EA
A well thought-out capital management system is used here. It is calculated on the basis of all possible indicators, which allows you to manage the risks as finely as possible and derive the mathematical expectation in favor of the client.
Do you want to check that I'm not making this up?
Pay attention to the spread coef parameter - make it 0 and see how the algorithm works.
Each trade at the time of opening will be at a loss.
Thanks to this parameter, you can predict the signal so that it will be exactly enough to overlap the spread. This immediately raises the mathematical expectation to 50%.
Then you just need to predict the correct direction. Up or down. 50|50.
Usually, all strategies have this parameter about 40/60 not in favor of the strategy. That is, a loss is more likely. There is a spread. ELM_EA has a 50/50 spread right after opening a trade.
Adjustment of potential profits
Profits are regulated according to the behavior of the price. The more active the market moves, the more money circulates in it. The greater the number of transactions can be perfect and, as a result, more profit can be made. There is no need to overestimate the lot size. ELM_EA will be ready to earn exactly as much as the market can give at that moment in time.
It does not matter how much the algorithm earns. The main thing is that it is able to systematically bring in positive trades and not to lose the entire deposit in one strong trend.
If the algorithm has not opened a hundred trades in the first two trading days - it means it is necessary for the algorithm. There are no suitable conditions on the market.
If the algorithm has earned 1%, you are already lucky. And you need to properly determine the risk/profit ratio. Believe me, when the market is having a roller coaster ride, my bot will not miss this moment.
And while he's waiting, you need to wait, so as not to be among the 85% who make mistakes.
This is trading psychology, scalper psychology.
I've been working in the markets for a long time and I've learned a lot over the years.
Sometimes I have clients who are ready to invest hundreds of thousands of dollars in trading. Believe me, there are many such people, and each of them needs a good strategy to keep and multiply their savings.
So if you expect to double your deposit in two weeks in a flat market, you should be actively martingale trading right now. This is a great market for martingale)
I started trading this strategy in 2016-2017. The basic basis of the strategy has not changed. In 4 years there was not a single case, a complete loss of the deposit.
But there were many examples when the market had hyper volatility and the algorithm earned huge percentages of profit in a short period of time.
What should you be prepared for when using the ELM_EA?
1. It is a professional system that does not make empty trades.
2. The probability that it will double your deposit in one or two weeks is very low.
3. The number of transactions can be very low for several days or there will be no transactions at all.
4. The probability that the bot will lose the deposit is 0. 1 trade can be opened at 1 point in time. The trade will be closed on the SL or TP.
5. The strategy of the algorithm is built on identifying patterns, in order to smoothly increase the deposit. Without the risk of losing the entire deposit.
6. The quality of order execution plays an important role. Therefore, it is necessary to use a VPS server.