Forex Neural Profits EA Review - Next-Generation FX Trading Technology
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Are forex robots the holy grail?. Should we use forex robots forex neural profits ea should we trade manually? What strategies are the best? How do we determine which forex robot is the best and what are the best ways to use it? Under what conditions do they work? Why most commercial robots fail? Quick profit involves a very high risk, this is one of forex golden rules.
This is near our target. And before we start a business, any business, we need to know when exactly will get back our main investment. After 14 years of renting, we finally recovered our main investment.
On the other side, forex is a more lucrative business if treated as forex neural profits ea business forex neural profits ea the yield is much higher. This is comparable to the situation we described above.
I have written a very comprehensive article about bayesian filters, everyone can understand it, please check it out here. In machine learning, Forex neural profits ea classifiers are a family of simple probabilistic classifiers based on applying Bayes theorem with strong independence assumptions between the features. For example, a winning trade is strongly correlated with certain factors like volatility, pivot points, the difference between previous high and low and so on.
The general assumption was that, no matter what strategy the robot uses, trend, pullback, scalper, countertrenda winning trade can be statistically identified. For example, trading around support and resistance points has a higher success probability compared to simply trading blind. If you add an extra filter, like volatility, the success probability increases. But forex neural profits ea main problem is that the market is dynamic, the trading conditions always changes.
Today is a good day for scalping, tomorrow might be a food day for trend followers, next week might be a great week for grid trading. We already know that optimizing the robot is not the answer because we are always one step behind the market. Tu put it simply, forex neural profits ea bayesian filter calculates the probability of success based on several factors like support and resistance points and if the probability is good enough, a trade is being opened.
My forex robot, called Forex neural profits ea is a mixture of bayesian filters and perceptrons sometimes neural network classifiers work better under certain circumstances and this robot uses both. I have spent an entire year trying to gather as much data as possible in order to feed the neural networks and bayesian filters. Then, I let them learn and classify the market conditions all by themselves, no optimization was performed. It survived in the wild without any optimization or tweaking.
The purpose was merely survival and learning, without any kind of trade filtering whatsoever, not the profit. This time, the robot is fully trained and ready to make money. You can see the results here forexgermany. At first, it was a complete mystery to me why all forex robots fail in spite of such great backtests. The answer is simple: You have to face many months and years of drawdown before you see the light at forex neural profits ea end of the tunnel again.
What is my forex neural profits ea to this problem? The approach is different. The lot gets increased after 3 or more losses and the robot recovers fast, the only thing I care is to keep a lower losing streak, in my forex neural profits ea, no more than 7 losses in a row. The recovery function has nothing to do with martingale. Martingale involves opening multiple positions forex neural profits ea doubling the lot size and keeping them open until the all are closed for a profit or the account gets blown.
This is the fastest way to lose the account. Zamolxis opens one position at a time. No system is highly profitable on the long run unless it is using some sort of recovery function or position sizing! It is profitable even without any recovery function but the profit is low. Besides, nobody has the time to wait for years of drawdown, we already know that from our past adventures with forex robots. I have backtested the robot from tosaved all winning settings, then backtested it against unseen data, from to If the losing streak gets higher than 6, the strategy gets invalidated by the market changes and the robot has to be retrained.
Forex neural profits ea the close of every bar, the market conditions are analyzed and classified with a bayesian filter and a neural network. If the feedback is similar, the robot opens a trade. Take profit is usually higher than stop loss, making the robot more reliable and trustworthy. It runs on multiple currencies, the supported currencies are: It has a solid recovery function, the lot gets increased after 3 or more consecutive losses. A very fast recovery is expected.
After a more careful analysis I reached the conclusion that sometimes, under certain conditions opening at every signal is a forex neural profits ea thing to do. If the market suffers major changes, the pattern is no longer valid forex neural profits ea the robot should be retrained in order to learn the new market patterns. The forex robot is optimized from to and only the best looking equity curve is selected.
Therefore, as a consequence, the robot fails a few month after the launch. A second possible answer is that the market changes to some degree and the strategy no longer works until the market changes in our favor again. My approach is different: Stop loss is smaller than Take Profit and no more than losing trades in a row are allowed.
The recovery function makes sure that we are in profit all the time. I trained the robot from to and then tested it against unseen data, from to If the number of allowed losses forex neural profits ea exceeded, then the market changed and the robot should be retrained.
The way this robot is designed is very important. I need to know if the backtests are valid or not, this is the main problem of all forex robots. The robot is optimized for the whole forex neural profits ea period, for example between and It selects only the best trades, the equity curve looks nice, everything is fine, then after a few months, it bites the forex neural profits ea.
At first, as I stated before it was a complete mystery to me why. Then I realized that the market does not behave according to our backtests, the conditions change and therefore the pattern is broken. The second important thing is that backtesting this way there is no checking procedure! How can we tell if the backtest is valid or not? The robot is optimized using data between and Then, the robot is tested against unseen data, between and If the drawdown length, drawdown depth and number of consecutive losses remains the same, then the strategy is valid.
This is our main assumption. If the market goes in our favor, we can follow it and win big! Lot increment algorithm has been changed. Suppose the starting lot is 0. If the 7th trade is lost, then the next lot size equals initial lot of 0. However, thanks to the trailing stop function we added, if the lot size of a trade is 0. Now forex neural profits ea can win big if the market goes our way and we can take many future losses without the need to increment the lot size.
To put it simple, the forex neural profits ea size rarely increases! And this is a huge step forward because the risk is highly reduced! Multi currency trader without additional controller.
Protection against stop loss hunting. As much as we like to hide the sl and tp levels from brokers, is very unsafe to do it because the market may turn violently against us wiping up the account. You can now close the trades manually for loss or profit. You could have done it in the previous version also, but now all bugs have been fixed. The core algorithm has been reoptimized. Neural networks and bayesian filters has been improved, the main purpose is to reduce the risk of ruin.
New tp and sl setting feature. In the previous version, the sl and tp levels are not set when opening a trade, the trade is modified right after opening with the desired sl and tp levels. Now you could activate the function which enables you to set tp and sl when opening a trade.
A rather useless function you may say, but some clients reported that this is the only way Zamolxis works on their broker, by setting tp and sl when opening a trade, not after. If you ask me, I think I forex neural profits ea in getting the best out of forex robot trading. So, is it more profitable than the previous version v20?
Short answer is no, the overall profit is almost the same, but the safety is highly improved, the risk has been greatly reduced. Thanks to our trailing stop function we added, sometimeswhen the market conditions are appropriate, you only risk 8 pips in order to get 82!
Now, take a look at both forward tests. The new version produced pips within 2 months while the previous one produced pips within 18 months! The profitability is now focused on forex neural profits ea trades instead of just increasing lots.
This is a huge step forward.