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How to turn a loosing EA in a profitable one?

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BAS27 2008.02.08 17:55 

Would it be possible to turn a consistently loosing EA in a profitable one, by simply reversing the trade positions?


Lets say the back testing is accurate and the EA looses allot.


How much would it have to loose, what criteria would need to be considered for it to be a good EA to reverse the trades? (Spread etc)



The EA made 26,843 trades from 1999 to end of 2007 with a total net profit of $322,873.00 (0.1 lots per trade)



Could this be a profitable EA if reversed...

article

Reporting the Sixth Week (3-9 November)

The sixth week did not produce many changes in the top ten of Participants


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MaxPayne 2008.02.10 02:21 
Hi,

such a "nice" straight line down mostly means on average you're losing your money to the spread.

Cheers!

Max

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BarrowBoy 2008.02.14 17:42 

Bas

> Lets say the back testing is accurate

One definite problem is that back testing may be consistent but isnt accurate - at least not in the way we need, i.e. in predicting future results


> and the EA loses a lot


Thats no problem, got a few of those ;)


> How much would it have to loose, what criteria would need to be considered for it to be a good EA to reverse the trades? (Spread etc)

Tried that and it dont work - unless...

I typed a > when I meant to type < !!!


Seriously though, an EA with a prayer of making money will typically have a large number of market conditions and values that are assessed prior to making a trade.

'Simple' reversal isnt an option - I've not seen inside a 1-2 pip scalper though - these may be simple enough to reverse?

My 2c worth

BB

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