Ask Me Anything

[ForexGuy]

Here is a great video to get you started. I'm here as a free resource to this forum. Ask me anything you like. I'll do my best to provide constructive responses.

http://www.4xtraderslive.com/video/l...day4.29.09.wmv

[Morgy]

Hi... Could you please answer my post in "Metatrader Platform" section of this forum regarding displaying charts on a website that I posted yesterday... thanks in Advance.

[ForexGuy]

I'd love to but I am not an expert on tech issues or metatrader. (I haven't used that charting software in a long time.)

What I can tell you is everyone I know who hosts live, interactive charts on thier sites pays a great deal of money to do so. Not just in licensing but also in tech support.

As you get into your research I think you may find the cost/benefit makes the idea unworkable.

Let me know how it goes.

[Henry]

Are you a proffesional trader? It seems that the guys who make money have a rigid set of rules by which they trade. There are a number of reasons for this and the most important ones seem to be that they have a strategy that works - for them anyhow - and the rules remove the emotions from trading.

Now I wonder about an apparent conflict. If proffesionals trade by a rigid set of rules, it must be possible to program an EA. Why then do you think so few EA's are profitable? It just does not make sense! The only explanation is that the really good guys don't give their strategies away and the guys who sell EA's are not good traders at all and attempt to supplement their income by selling these little programs.

Your ideas on this?? Are you a full time trader?

[ForexGuy]

Originally Posted by Henry

Are you a proffesional trader? It seems that the guys who make money have a rigid set of rules by which they trade. There are a number of reasons for this and the most important ones seem to be that they have a strategy that works - for them anyhow - and the rules remove the emotions from trading.

Now I wonder about an apparent conflict. If proffesionals trade by a rigid set of rules, it must be possible to program an EA. Why then do you think so few EA's are profitable? It just does not make sense! The only explanation is that the really good guys don't give their strategies away and the guys who sell EA's are not good traders at all and attempt to supplement their income by selling these little programs.

Your ideas on this?? Are you a full time trader?

Henry that is a great question.

Yes, I am a full time trader. So I guess you could call me a professional.

It has always been my contention that any trader can come up with a system that is 80% as effective as the best trading system ever developed. This of course is not merely my own contention but that of Richard Dennis, the developer of the "turtle program" that I'm sure you are familiar with.

The premise of your question implies that most EA's don't work. Since I have never used an EA I'm not sure if that is true or not. What I am sure of is most EA developers pray on greed. They market to traders who are failing and then attempt to sell them on the promise of “riches while they sleep”.

What most fail to realize is they are losing money not because they don’t have the magic system, but be because they lack the emotional control and education to follow any system. (profitable or not.)

But, let’s assume you are right and most EA’s are flawed. Keep a few things in mind the next time someone promises to sell you an automated system that will make you millions for the low price of $99.

1. If the system is so good, why not charge a thousand dollars? If the sellers product works he is obviously a millionaire. He can sell the product for whatever he wants. One might claim it is about affordability, but then why not sell it for $1 or better yet for free. If you have a million dollar system is it really about the money?

2. Why not sell the rights to the system to a large fund or institution? If the EA holds up under scrutiny these firms would pay millions to control a product that produces the kind of returns most claim.

3. Why not raise money on your performance and start your own fund? You’d be the most profitable fund on earth.

4. I am a trader and educator. Many, many people ask me for performance data. I always refuse. It is a double edged sword. If I don’t provide the data they say I am being dishonest and hiding my losses. If I provide the data people ask, “how can I ensure you are not fudging your numbers”? I can’t win. The fact is, there are a million ways to fudge the numbers if someone wants to be dishonest.

My final word on EA’s. Be very careful. The FOREX industry is fraught with scam artists and greed mongers who will sell you the keys to the kingdom, 50 dollars at a time. But that does not mean there are not good systems out there for someone with the discipline to follow them.

[walepdydy]

How can a part time trader be a proffesional trader?

[ForexGuy]

Originally Posted by walepdydy

How can a part time trader be a proffesional trader?

It's interesting you should ask. I've been writing a little about that very subject recently. I am a firm believer that ANYONE can make a choice to act as a professional. In my opinion this is a matter of conduct, not one of occupation.

I'll give you a personal example. I consider myself a full time trader. Virtually my entire work day is spent in the market. I also work with a handful of clients and do things like write for this forum. But I also have other business interests. I own two other companies. I have set up my life in such a way that allows me to do what I love most....trade. Does the fact that I have other revenue streams in addition to my trading mean I am not a professional trader? Of course not.

When most people think "professional" they think of someone in a prop room or on the floor of an exchange making millions a year. While this is certainly true, there are just as many traders making modest livings trading from home or in conjunction with some other business venture.

To use just one more example, I know a man who has a full time job in a field unrelated to the trading industry who also trades. He has been wildly successful and could easily quit his job any time he wanted. I think he stays because he loves his day job. But you would be hard pressed to convince me he is not a professional. We had a discussion a few weeks ago about the currency market and the condition of the dollar. I have a huge respect for him and his opinion.

Professionalism for me is defined by ones actions in the market. It is the only measure I use. I don't care if you make a dollar a week or a thousand. If you can do it consistently, your a professional in my book.

Hope that helped.

[agent0711]

Hi

been looking around everywhere like babypips, I can't understand what is the difference of swing trader and day trader?
And what is swing high and swing low in chart? Maybe give me an example in charts. Thanks!

edit.
and also, how to backtest systems? manually or is there some sort of simulator out there.

[ForexGuy]

Originally Posted by agent0711

Hi

been looking around everywhere like babypips, I can't understand what is the difference of swing trader and day trader?
And what is swing high and swing low in chart? Maybe give me an example in charts. Thanks!

edit.
and also, how to backtest systems? manually or is there some sort of simulator out there.

A day trader is typically defined as someone who closes out all positions at the end of every trading day. Swing trader would be someone who holds trades for 2 days to 2 weeks.



I'll cover back testing next week in my trading article on this forum. Be on the lookout.

[agent0711]

I see
thanks for the explanation
looking forward for your next articles