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FAQ
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General Questions About the Trading System Used |
| Q. | Do important news events have an effect on this system? | |
| Ans. | Important news events usually don't have a huge effect, but sometimes they actually help a little bit. We generally don't worry about them at all. | |
| | | Q. | Does the EA work better in a ranging or a trending market? | |
| Ans. | As long as the prices are moving, we don't really care. And they are always moving. I suppose that a ranging market over a range of 100-200 Pips would be ideal, but it works even in trending markets. Depending on where in the trading range the trend is taking place, we might earn profits right away, or else we will earn them when the prices retrace or the trend reverses. | |
| | | Q. | Why do you recommend FXDD? | |
| Ans. | Our mathematical systems have certain requirements to make it work effectively. We diligently went through the abilities of dozens of brokers, looking for the ones that could accommodate our programs. Here are a few of the reasons why we recommend FXDD as the first broker to begin with for trading this system.
1. Their spread for the AUDNZD is less than most other brokers.
2. They allow our users to trade with 2 decimal places for lots sizes, ie, .01 standard lots.
3. They allow at least a 200:1 margin.
4 They are open for trading and support whenever the market is open.
5 Quality support that you can depend on. They have also been very cooperative in providing everything that we need up to this point.
6 The RoboMiner and the GridWeaver were developed using the FXDD trading platform therefore there should be fewer irregularities.
Full disclosure: we are continuing to compare other brokers and work closely with Josh at FXRebates. He is an introducing broker who understands our needs and assists us to improve our broker relations. We also receive a small rebate for telling those using our system about FXDD and the concessions that they have made for us. We use the rebate to help offset the costs of support, research and a host of other expenses that would have to be paid for with higher product costs if we didn't have the rebate. We therefore appreciate your help when you choose one of our approved brokers. We enjoy being able to offset expenses without passing on that cost to our trading family. | |
| | | Q. | I have had an open trade that has moved from postive to negative territory. When will it close the trade? | |
| Ans. | It is a grid trading system. It is waiting for the price to reach a predetermined point before it closes a trade.
If you study the back test data that is shown on the website, you will see that it is sometimes several days, weeks and maybe months before a trade is closed. It is not meant to be nursed along waiting for trades. They happen when appropriate. Over the long term, you will see the profits build up as the trades close and accumulate their profits.
We have studied the movement of this pair over a long term and it will eventually get there. But it is rare for a trade to close within a few minutes. What you are describing is very normal for this system. | |
| | | Q. | Is this a "Martingale" type of EA and strategy? | |
| Ans. | No. Neither EA or Robot uses a martingale strategy, because the size of the trade does not change after each trade. A martingale strategy plans on some trades closing at a loss, and then it increases and even doubles the size of the next trade. The roboMiner is programmed to never closes trades at a loss and doesn't vary the size of the trade until it would be dictated by the normal money management rules of the system, ie, your account balance grows to a point where it can trade an amount safely and still allow for the full range of the movement of the currency pair.
The RoboMiner uses a grid trading strategy. The size of each trade is an important part of the strategy, because we worked out the math to allow the currency pair to go higher price than it has ever historically reached, and lower than it has ever historically fallen to, still without getting a margin call.
The whole idea is to be able to just let it alone and trade over a long term, and it will make a nice average monthly return for you. That is why we tell people to not think like "traders", but to think like long term "investors" when using this EA. | |
| | | Q. | How Many Open Positions for the RoboMiner are too many, and when does it start selling? | |
| Ans. | I have had as many as 25 or 30 open positions in the past. There is no
real limit as such, except for what your equity can handle. As long as
you are trading conservatively as has been suggested, you should be OK,
even with a number of open positions. The system is designed to have
positions open almost all the time, and so I do not worry about that.
For each currency pair, if you look at the lower left of the chart, at
the bottom of the comments, you will see two comments: Open Forward
Orders and Open Reverse Orders. Each one will be market true or false,
with a number in parenthesis after it. That number in parenthesis is the
grid number you need to get to in order for it to switch from one to the
other. If you are buying, and the number in parenthesis says (33), then
you need to get to grid instance number 33 to switch to selling.
Actually, it will buy at the bottom of range 33 and sell at the top and
then up from there. At the top of the chart, next to the Forward Open
or Reverse Open comment, it will give you the current range number. So,
if the current range was 26, then you would need to go up 7 ranges of
however many pips each range is (likely to be 40 pips each range with
the AUD/NZD) to start selling.
You can actually see the price where this will happen by pressing F7,
and putting that range number in the DisplayLevel setting. If you put
33 in there and press OK, then it will display the forward open (long),
forward close, reverse open (short) and reverse close prices for that
range, which would be somewhere around 1.1700 or so. Once you see that ,
you know where it will switch over to selling. But don't forget to put a
0 back in the DisplayLevel setting again, and then press OK. | |
| | | Q. | I am worried about trades hanging with the RoboMiner. | |
| Ans. | " I am afraid that the price will move and never return to normal and I will have a trade left dangling like an abandoned child."
In theory, according to your example, that could happen. You would have
a trade dangling like an abandoned child, as you put it. However, in
reality, it usually doesn't happen that way. Yes, for a while, it might
seem like that would be the case, but sooner or later, the prices return
to where they were previously. With the RoboMiner, we had this happen
over the summer when the price of the AUD/NZD went way up, to 1.2964,
which was higher than it ever had gone since before 2000. But they
eventually did go as low as 1.06xx in a recent week, which was lower
than where we started.
The thing to remember is that as long as you trade with a conservative
lot size, you can weather those times of waiting. Most of the time,
things go well, but there are occasional times when you do have trades
hanging. It has happened to me enough, and I have had them turn around
and eventually close enough times that I don't let it worry me any more.
If need be, I just don't look at my account for a while, other than to
be sure that the EA is running OK. I just put it out of my mind, and
then I am eventually rewarded with the profits I was waiting for. If you
have a sound trading system, no matter what system it is, there will be
times when things seem to be going against you, but if the system is
sound, then it will eventually recover and you will end up profitable.
That is part of the mind-set that is necessary to be a successful trader. | |
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