Starting with $500 and an EA to trade Forex

tgdev

BANNED
Mar 22, 2023
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My first forex trading experience dated back in 2014-ish, learned a lot of basic stuff from babypips.
But after more than a year I couldn't figured out how to become profitable, I still don't "get it".
Having lost a lot of money I tried to find a way to get it back quickly, so I went into signals, gurus, etc.
The result? burn even more money with these methods, I quit.

Fast forward this year, I saw some of my friends trade forex and that made me want to give it another try.
Reopen my old notes, binge watch Youtube videos but everything feels the same :(

Until a video by NNFX pop-up on my feed, his approach in trading seems unusual but make sense for me.
Basically his trading strategy is trend following that rely on a set of indicators to take actions.
Only enter a trade when all indicators gives green light, means a new trend has been confirmed.

I started to build my own system, tested many many many indicators trying to find a combination that are able to identify good entry and exit.
And most importantly, to eliminate potential bad trades. After several months I think I finally have a pretty decent setup.

FX System.png

I feel so confident, I go straight to my broker account, made a deposit and started to trade.
Turns out it's not that easy, psychological issues kicks in once we are trading real money.
Impatient, indiscipline, fomo, greed, etc... took unconfirmed trades that turn into loss.
Overconfidence made me ignore signal from indicators that tell me the trend had reversed and... another loss.

But I don't want to quit this time. I know I'm on the right path, maybe not manually...

So I decided to hire a programmer to code the strategy into an expert advisor (EA aka bot) so I can eliminate psychological factor.
Got the first iteration of the bot last week, backtest it trying to find best parameters, and run it on live demo account.


I know I should've test it on live demo for longer period before drawing any conclusion, but from this short test the initial result is quite acceptable.
Entries are good and drawdown is good (tested with 75+ charts simultaneously - multi pairs & multi timeframes).
What bother me the most is, it seems to unable to exit at the best possible condition yet, it's the first item on the revision list.

I expect market will be flat until the end of the year, I'm going to use it to run more live demo test to find better parameter settings.
I'll start to trade on the real account in January. Only have $500 spare now but it's okay, I'll just limit the number of trades & lot size.
I'm not trying to turn it into $50k in a year or so, just small additional passive income is good enough.

Wish me luck!
 
Decided to start the bot on real account on Tuesday.
Performance is good but as predicted it still need better exit strategy.
Have an idea for the fix and asked a revision to my programmer.

Dec 28
Profit: $42
Balance: $621
Floating: +$75 < usually close at a lot lower

 
All the best friend and good luck. Profitable EA was always my dream. Hard to say but I failed. Came up with the conclusion the only profitable one is very risky, with massive drawdowns like the martingale strategy, and at some point, with market shift, it always fails. fingers crossed for You mate.
 
You're on the wrong path. You're thinking in the same way like the majority of traders do. Coming up with the same problems -> conclusions -> solutions that lead to a new set of problems and the cycle never stops.

I've been in FX trading business since 2010 and been trading full time for the last 2.5 years. I've been where you are as well. My advice is that instead of trying to find the best indicators, you should study the market and seek professional understanding of how it actually works. Indicators and psychology is not the answer. If it was, you'd have figured it out already because you've been doing it way longer than most people who try trading. They do help a bit, but it's not the final answer.

Pick a recent market move, look at it, analyse and try to explain the reason why it happened. Why did it start there and why did it finish exactly there. Why did it go slowly or why did it go quickly. What's the meaning behind it. Who moved the market. And don't say something stupid like "it was a double bottom with macd divergence" or "it was a stop run and the following move is explained by SMC". Look for real answers. Something that you can trust upon. Answers that work 100% of the time, not just 70% or whatever. Anything that is not 100% is not truth, it's just guesstimates created by either mediocre minds or by those who have hidden agendas against you.

The true problem is that most traders have a 110% belief that they know how this market works, but in fact they don't. When you develop the correct understanding and beliefs, you can make money. And no you don't need luck. :) All you need is a clear mind, desire to find true answers and patience along the way.
 
You're on the wrong path. You're thinking in the same way like the majority of traders do. Coming up with the same problems -> conclusions -> solutions that lead to a new set of problems and the cycle never stops.

I've been in FX trading business since 2010 and been trading full time for the last 2.5 years. I've been where you are as well. My advice is that instead of trying to find the best indicators, you should study the market and seek professional understanding of how it actually works. Indicators and psychology is not the answer. If it was, you'd have figured it out already because you've been doing it way longer than most people who try trading. They do help a bit, but it's not the final answer.

Pick a recent market move, look at it, analyse and try to explain the reason why it happened. Why did it start there and why did it finish exactly there. Why did it go slowly or why did it go quickly. What's the meaning behind it. Who moved the market. And don't say something stupid like "it was a double bottom with macd divergence" or "it was a stop run and the following move is explained by SMC". Look for real answers. Something that you can trust upon. Answers that work 100% of the time, not just 70% or whatever. Anything that is not 100% is not truth, it's just guesstimates created by either mediocre minds or by those who have hidden agendas against you.

The true problem is that most traders have a 110% belief that they know how this market works, but in fact they don't. When you develop the correct understanding and beliefs, you can make money. And no you don't need luck. :) All you need is a clear mind, desire to find true answers and patience along the way.
Can i ask how did you learn? I see these types of messages SO often but extremely minuscule support in actually helping.
 
Can i ask how did you learn? I see these types of messages SO often but extremely minuscule support in actually helping.
You may not get an answer as the person you are asking has not been in the forum since February.

That might be a good question in another thread that you can open as it will probably get more eyes on it.
 
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