Hi @s_kushwah, As has been demonstrated and finally admitted to by various Brokers over the last 5 years, you are trading against your Brokers (LP’s) Algorithm which is only using the InterBank Markets prices as a guide… Nothing more… (Example)
I develop Indicators, Bots (EA’s) Strategies and extensively backtest a lot of code as well. After a while you will start to see patterns in the market makers algorithms. They become more obvious and more deliberate the more strategies I backtest…
Now…can I predict the markets?.. Hell no… but I can detect when the algorithm is running in one direction or the other…ie: Someone designs a Bot that makes a fortune from the get go… and it works perfectly for a while… then suddenly it no longer generates a profit… it is broken as they say… all that has happened is price action has flipped it’s signalling (Negative /Positive).
You can test this with any moving average crossover… do some backtesting to optimise parameters such as Time Frames… Periods… MA Type… even OCHL source… (I use powerful optimising software that tests 1000’s of combinations of these parameters over a matter of hours)
So, you find a combination and it works perfectly, now you let the EA lose on a Demo (or Live) account for some real results. It starts generating profits for 2-3 days maybe even a week or two (TF dependant)… then without changing any settings… it begins to lose each and every trade… 90% of the time taking your banked profit amounts right back to zero… This anomaly can be found with virtually ALL Indicators… hence why most trading strategies will require multiple Indicators / conditions (or NO Indicators) to be somewhat successful.
How many have seen these results from one of their time tested strategies?
Read across 1000’s of pages of Forex literature and you will see this phenomenon discussed ad nauseam… It’s how price action is designed to work… stretched margins, fooled Indicators… Continual Stop Hits… all conspiring to confuse traders and destroy profitable strategies engaged in these markets.
Week#5… The above is what you are witnessing…
Edit… Adding a Bool switch to an EA (reverse logic)… and test it… it will surprise you…