My question is:
How can EA’s be so ‘bad’ but a system, such as the one on this site, Cowabunga, be good and more importantly profitable?
I suppose my problem is that I am having a hard time differentiating how the two are different. A system sets up a code of conduct that you adhere to on every one of your trades, usual they are open to minor tweaks and performance reviews. A trading ea is essentially the same thing, a code of conduct that you decide you want all your trades to adhere to. The program will allow minor tweaks and is reviewed on performance.
Assuming the EA is working the way it should, it’s completely mechanical. I don’t care who you are, you need a certain measure of human judgement to stay on the right side of profit margins.
there are sites directed towards EA’s and sites directed towards “manual” trading, and the two do not often mix.
this site is a “teaching” site for learning how to trade, which immediately implies “hands on” trading and the ability to make your own decisions.
other sites stress “auto” trading, and many of the programs that exist will and do make money — plain and simple.
my own feeling is one that approaches the “purist” and that is if you dont LEARN how to trade, you wont know how to fix your “auto” trader, and you definitely wont be able to call yourself a “trader” except perhaps on your tax returns.
im a trader, and if i let a computer do it, im not doing ANYTHING (which of course is the dream of all mankind)
now thats the philosophical point of view, at least from me, but what is more important is the trading program MT4 which REPORTS BACK to your broker exactly what the EA is doing. Yearly contests are held for creators of EA’s not so much because they WANT people to perfect trading to the point where the brokers cant win, but rather to find out what is being developed so they can either outlaw or learn to work against winning EA’s.
brokers make their money in a number of ways, but it is NEVER by letting something or someone beat them consistently ---- come up with a really good EA and a broker will come up with how to trick it, outlaw it or just plain shoot it to death !
personally, if you KNOW how to trade, you can handle ANYTHING they throw at you, but i dont feel an EA can do that easily !