Hard Reset

Filed Under (Journal) by Casey on 15-06-2011

Forex EA is a great technology and about one or two years ago, there was a debate going on as to whether to trade automatically or to trade manually.

And there was a equal point to both side divide.

I have never join the debate. I just love forex ea because I am just plain lazy… with the capital L. I love forex and I love technology. And as they say you can never be lazy with love.

Ok… there is no ‘they’. I believe that one can never be lazy with love.

And yes… forex ea has made me lazy. Has made me take for granted what forex ea is actually all about. Forex trading is a journey and a tough one where it pits you mental strength and ones resolve to succeed in the forex market.

I thought forex ea is the key to all of this… Very naive and very ignorant indeed.

Forex market is a very big emotional and mentally stressed pit. It is one of the reason why not many people can be successful in forex because of the nature of how the market operates. And philosophically, forex is the master of oneself. If we can not master ourselves, we can never master the success in forex.

Now where did all that come from?

Well in the midst of healing, I taken the opportunity to re-educate myself with regards to trading. And I found it most enlightening…

Forex trading is a not different then any other market but somehow or rather people seem to treat it that way and all the trading rules that have been echoed by all the traders seems to be thrown down the drain when it comes to forex ea.

Forex EA seems to employ a different set of mind. They treat the market as logical and produce an EA base on an algorithm that is logical. Forex EA developer are first and foremost programmers. Forex traders or any other trader guru would advice all traders to have a simple strategy.

For example, to say when A meets B then do C. This kind of logic suits a programmer. When we backtest it to verify the approach, logically it should work in the market no? And that should debunk most of the mantra of trading… like 2% equity approach, always have a stop loss base on risk and reward ratio.

Initially I was drawn into this drama but took the side of the programmers mindset, that all the trading mantra should not be a priority when when logically if a backtesting of a EA is sound, the strategy should work in the market. But that did not really get me anywhere did it…

I realize that most of the great traders were manual traders. When I say great traders I do not mean guru who spew BS from the mouth and would rather make money giving seminars. Great traders are traders who don’t sell seminar in bulk. They live a quiet life and make money trading for themselves.  Once in a while they write a book about their own trading experiences and share when the masses what and how they trade the market.

I think these are the great traders that we should follow.

I realize that all the are great traders master themselves by working hard. There are no easy way to make money than to work hard. I mean look at USA, they seem to preach that working less while making more money is the way to do. These are the lucky few that manage to manipulate the system and make money from themselves. These self help gurus have done nothing for the masses but enriching themselves.

(http://www.amazon.com/Sham-Self-Help-Movement-America-Helpless/dp/1400054095)

Great read by the way…

Looking that the economy in US vs China, how many people will believe that US is in the midst of collapse while China is poise to take over US in as the number one economy superpower.

And the majority of Chinese people believe in one thing… Working hard that is the way forward.

After more than 3 years of toying around with forex EA.  I have forgotten to be the one thing my Chinese DNA is suppose to have which is to work hard. Or it’s not a DNA thingy but rather it is a culture.

Anyway… my point is that I have not been working hard with forex. And I think that is the basic foundation that I need to reconstruct again.

Having said all these. does that mean I will end my quest to find the best forex EA and start manual trading? Well… I still believe in logic, but I also do believe in human discretion where logic will sometimes fail.

Common sense are what great traders apply in the market. Nothing more nothing less. And good judgement will never exist in forex EA.

However, common sense also tells me that forex EA is also the way forward in technological terms which is to help and assist traders but never to replace good judgement of a trader.

I would like to share with you an analogy I came about. The latest airplane either by Airbus and Boeing are incorporating advance navigational technology into their design as time passes. However, even with the latest of technology, they still believe that they will never risk the lives of passengers by having a plane that flies fully on autopilot.

In the cockpit, when the plane flies in the air the pilot will have it on autopilot but never will they leave the cockpit unattended. Either one of the pilot must be in the cockpit monitoring the plane and flight. If ever the authorizes find out that the cockpit is left unattended in any part of the flight. Both the pilots flying license will be revoked.

Applying the analogy in trading, I can not fully risk my money (passengers) fully on automatic. Forex EA would probably guide my trading but it is up to individual to be the best ‘pilot’ traders that we can be.

In summary, I also need to be a good trader if I am to utilize the best forex EA available. I spend two years plus trying to be more lazy by trying to look for the best forex ea that will make me money without doing any work.

Can never happen and will never happen… not without putting effort in being a better trader myself and applying good judgement.

With that, I will need to do a hard reset… or maybe a partially hard reset and begin my forex ea journey all over again.

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