The truth about Market. Programmer wanted for super system EA.
"People with ten million dolars are not happier than people with nine million dolars. "
Have I right ?
I can write every strategy You have under Meta Trader 4.
But first you have to know exactly what you want.
But be rest assured there will be enough points there to create a situation when the system you are using fails because the computers know exactly how much money you have on your account and where your stop orders are. If it does not fail immediately it will inevitably fail over time. The market will detect it and re-adjust itself.
If this is true, would it not be possible to "fool" the brokers computers into thinking he knows where your stop losses are by using an unrealistic stop loss say 1000 pips? i dont beleive any market is going to spike 1000 pips just because your stop loss is set at that level, and then use an EA to create a psudo stop loss, ie EA that uses a market order to close orders should they hit the intended stop loss level which remains hidden in the code of the EA ?
If this is true, would it not be possible to "fool" the brokers computers into thinking he knows where your stop losses are by using an unrealistic stop loss say 1000 pips? i dont beleive any market is going to spike 1000 pips just because your stop loss is set at that level, and then use an EA to create a psudo stop loss, ie EA that uses a market order to close orders should they hit the intended stop loss level which remains hidden in the code of the EA ?
Consider that IF the broker really was interested in being crafty about stealing your money this way then wouldn't they also be crafty enough to just steal your code and use it to make money for themselves?
Note I don't subscribe to this theory, just saying we are all coders here so pulling together a cohesive if/then logic tree is second-nature...and my if/then logic tree says:
string broker=AccountCompany(); string super_evil=MathPow(Madoff,2); if(broker==evil) { broker=super_evil // no limits to their villany, will use MT4 as backdoor to siphon your EA code bit-by-bit hidden amongst the tick-data packets, sleeps with your wife and takes candy from your children, oh and it kicked your dog, twice. } else Print("why worry about things you have no control over? MT4 is the only game in town, either figure out how to beat the system (real or imagined) or give up now and go to Vegas!")
Did u have any success in coding this idea after all ?
It is a well known fact that most people loose money trading, usually it is only a matter of time. If it weren’t true the trains and buses would be empty at 8 am, nobody would go to work anymore. A fundamental reason why it is so difficult to trade successfully is that the market is extremely sensitive to any changes that are introduced by participants. And it has to be. The very survival of the market depends on its ability to accumulate money. It is a unique, incredibly efficient self regulated system, a phenomenon that is yet to be fully understood. Trading systems that use indicatiors make me laugh. Do you really think that it is possible to consistently make money every time two lines cross each other? If you are trying to guess a direction in which a currency pair will move then think again. The ability of the market to react to any change, e.g. a new buy or sell order, no matter how small, makes indicator based systems rather unreliable if not useless. Because if the order had been opened with real, I repeat, REAL money the chart would look different now. The market would have reacted. Of course indicator developers would want you to think otherwise, they have their families to feed after all. For that reason they are not going to tell you that there are better thing to do than searching for the right period of Moving Average for the rest of your life.
Things stay in proportion. A big order may visibly move the market and a small order will move the market too even though by a small number of points. But be rest assured there will be enough points there to create a situation when the system you are using fails because the computers know exactly how much money you have on your account and where your stop orders are. If it does not fail immediately it will inevitably fail over time. The market will detect it and re-adjust itself. Any attempt to squeeze money out of it is not unlike running around the house trying to catch your own butt behind the corner. 50/50 probability? Ha-ha, forget it. When somebody compares the market with a casino I want to ask that person a quesioon - hey, what planet are you from? In casino the dice has no memory, the game does not know what you know, i.e. how much money you have in your pocket, when you are going to stop playing, etc. The game does not know and does not care what other players are doing either. The market knows. And actively works against you. You know the statistics. This difference makes a winning probability rather slim in real life. Well, do I sound pessimistic? Yes, I do. But it is better to be a pessimist and sometimes earn than to be an optimist and always loose.
OK, let's look at a candle with a long tail pointing south. The tail represents a quick price movement down and then retracing back again to the original level. The process is known as “shaking”. Why did it happen? Because a sufficient number of participants bet on the market going up and had their stop loss orders are placed below (price). The market maker’s computers could see them and acted accordingly driving the price down and back up again. That’s why an ideal method to set a stop loss at the right point can never be found. These people had to close their positions with a loss only to see the trend going in the right direction afterwards. We already know that the market is fractal and the chart looks the same on any time frame. So how many people in the world are getting shaken off every second, minute or hour? Thousands. And that’s how the market makes money. Is there any answer to this? Yes, there is. Market neutral and hedge strategies.
Now. A good programmer needed. I developed a system that addresses the above mentioned issues. It also takes care of tricks played by the brokers. The system is based on a GRID method widely discussed on various trading forums for several years. I managed to find a solution for so called "danglers", i.e. negative positions that tend to accumulate when the price makes a strong move in one direction. The system that evolved from grid method is rather complex, there are no indicators but plenty of calculations involved so you have to be rather good in math and at programming MT4 EAs. Don't contact me if you are too busy writing hundreds of other programms, not commited enough in the long run or just curious to see next thing close to Holy Grail. I am looking for a programmer I can work closely with on this EA. If you think you are such person then drop me a line. And hey, you don't have to share my point of view about trading. Opinion is like an assh0le. Everybody has one.
OK, let's look at a candle with a long tail pointing south. The tail represents a quick price movement down and then retracing back again to the original level. The process is known as “shaking”. Why did it happen? Because a sufficient number of participants bet on the market going up and had their stop loss orders are placed below (price). [...] These people had to close their positions with a loss only to see the trend going in the right direction afterwards.
Or alternatively: The people who correctly guessed the direction of the move and went short in that bar then closed when their take profits triggered. These people chose to profit take at a good moment, only to sit back and smile.
To "open" a long position you "buy" the base currency, which means to "close" a short position (at either stop loss or take profit) you "sell" that same currency. The affect you have on the market with a stop loss or take profit for a long position is exactly the same. Vice versa for short. The stop losses of long positions and the take profits of short positions both exert bullish pressure. The stop losses of short positions and the take profits of long positions both exert bearish pressure.
Or alternatively: The people who were not already in the market, but who had correctly guessed the up-coming support level, had their buy limit pending orders triggered. These people potentially also surfed to victory.
Or alternatively: Some people may have waited for the pull back from the
support level to be confirmed (rather than using a buy limit order),
and then scalped the return towards the center of the candlestick, or stayed in the new trend for a longer.
The market does not move on momentum if there are no trades being made. It can't carry on moving like a snooker ball after the initial force has been imparted. A trade is made, the bid/ask price changes to reflect the new supply and demand, and then it stays there until a new trade occurs. The price does not continue to change multiple times due to momentum simply because of one trade, unless new trades are made because of that first trade. By trade here I mean market entries or stop losses and take profits. This means that in a "long tail pointing south" there were new people selling at every successive pip down to the low, and then new people again buying at every successive pip back up to the close. The appearance of the japanese candlestick makes it look like price somehow fell to low in one jump, and then bounced back to the close in one jump, but that is not the case. After the low was reached, there had to be a steady stream of new people entering all the way back up to the close. This could obviously therefore not have been due to stop losses of people who were long before the tail occurred, because the market movement of their stop losses would have been felt only on the way down.
Also remember that forex markets are not just moved by speculative traders. There are massive, massive currency exchanges of cash due to real world trade in the buying and selling of physical goods and investments (eg. stocks and bonds) between countries which require currency conversion (ie. buying one currency and selling another). Although they are unlikely to have caused a tail in themselves, they do move markets yet they have no stop losses nor brokers to manipulate them.
Sudden price reversals which form long tails are not solely (or even mostly) caused by traders hitting stop losses - as you seem to suggest.
I'm not trying to enter in to a discussion about your theories on market
conspiracies, or offer my "opinion". I'm only pointing out the facts of
the market you skipped over regarding creation of candlestick tails. I
only bother to point them out because it sounds like you are putting a
lot of effort into a system and tying to think smart, and they might
help you to avoid wasting time fighting imaginary enemies, and
ultimately to become more profitable. Rather than trying to stop your
broker or the market from guessing where your stop loss is, you might find you start to make more money when you try to guess where other peoples' stop losses and take profits and pending orders are. Wink-wink-nudge-nudge.
Good luck with your system. There is always the possibility
of simply using a 'hidden' stop loss if you are still really worried.
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It is a well known fact that most people loose money trading, usually it is only a matter of time. If it weren’t true the trains and buses would be empty at 8 am, nobody would go to work anymore. A fundamental reason why it is so difficult to trade successfully is that the market is extremely sensitive to any changes that are introduced by participants. And it has to be. The very survival of the market depends on its ability to accumulate money. It is a unique, incredibly efficient self regulated system, a phenomenon that is yet to be fully understood. Trading systems that use indicatiors make me laugh. Do you really think that it is possible to consistently make money every time two lines cross each other? If you are trying to guess a direction in which a currency pair will move then think again. The ability of the market to react to any change, e.g. a new buy or sell order, no matter how small, makes indicator based systems rather unreliable if not useless. Because if the order had been opened with real, I repeat, REAL money the chart would look different now. The market would have reacted. Of course indicator developers would want you to think otherwise, they have their families to feed after all. For that reason they are not going to tell you that there are better thing to do than searching for the right period of Moving Average for the rest of your life.
Things stay in proportion. A big order may visibly move the market and a small order will move the market too even though by a small number of points. But be rest assured there will be enough points there to create a situation when the system you are using fails because the computers know exactly how much money you have on your account and where your stop orders are. If it does not fail immediately it will inevitably fail over time. The market will detect it and re-adjust itself. Any attempt to squeeze money out of it is not unlike running around the house trying to catch your own butt behind the corner. 50/50 probability? Ha-ha, forget it. When somebody compares the market with a casino I want to ask that person a quesioon - hey, what planet are you from? In casino the dice has no memory, the game does not know what you know, i.e. how much money you have in your pocket, when you are going to stop playing, etc. The game does not know and does not care what other players are doing either. The market knows. And actively works against you. You know the statistics. This difference makes a winning probability rather slim in real life. Well, do I sound pessimistic? Yes, I do. But it is better to be a pessimist and sometimes earn than to be an optimist and always loose.
OK, let's look at a candle with a long tail pointing south. The tail represents a quick price movement down and then retracing back again to the original level. The process is known as “shaking”. Why did it happen? Because a sufficient number of participants bet on the market going up and had their stop loss orders are placed below (price). The market maker’s computers could see them and acted accordingly driving the price down and back up again. That’s why an ideal method to set a stop loss at the right point can never be found. These people had to close their positions with a loss only to see the trend going in the right direction afterwards. We already know that the market is fractal and the chart looks the same on any time frame. So how many people in the world are getting shaken off every second, minute or hour? Thousands. And that’s how the market makes money. Is there any answer to this? Yes, there is. Market neutral and hedge strategies.
Now. A good programmer needed. I developed a system that addresses the above mentioned issues. It also takes care of tricks played by the brokers. The system is based on a GRID method widely discussed on various trading forums for several years. I managed to find a solution for so called "danglers", i.e. negative positions that tend to accumulate when the price makes a strong move in one direction. The system that evolved from grid method is rather complex, there are no indicators but plenty of calculations involved so you have to be rather good in math and at programming MT4 EAs. Don't contact me if you are too busy writing hundreds of other programms, not commited enough in the long run or just curious to see next thing close to Holy Grail. I am looking for a programmer I can work closely with on this EA. If you think you are such person then drop me a line. And hey, you don't have to share my point of view about trading. Opinion is like an assh0le. Everybody has one.