TYG's Trading Story - Thoughts, Trades and Technicallity

Trading Discussion Trade Journals
21

Technicality: MT4 Instability

I don’t want to say MT4 is bad. But, recently it causes a lot of problems since 1420 update. The stability my EAs is ruined. They keep crash and freeze. Is this because I’m using Linux server to run them? But I face no problem running MT5 with them.

I can see, MT4 is using more memory compare to MT5. It sounds impossible since MT4 is 32 bits and MT5 is 64 bits. Is it because my EA’s algorithms are not fit with 32 bits architecture?

I need more time to understand. But I’ve had certainty to leave MT4 for good. The future of my automated trading rely on MT5 and cTrade.

MT4 has been accompanying me for almost 20 years. I have to thanks this old good platform. There will be a farewell party between me and MT4. MT4 will always be a part of me, and remembered as a good platform that have guided me to what I’m now. :smiling_face_with_tear:

Thank’s MT4 for your contribution and hard work. Thanks for Meta Quotes for bringing MT4 into my life. I will continue my trading journey with MT4’s little brother, Meta Trader 5. :slightly_smiling_face:

22

Thoughts: Automated Trading System

I always think of Trading as a serious business. Having an automated system, just like you are an entrepreneur who are setting up a branch office. You can’t rely on your own to expand your business. You need to have a good team and system. If don’t want have others involvement as your team, then you have to use robot.

Why do we need a automated system? Have you ever thought, when you are unable to trade, sick for example? Who will help you?

There was time, when I had to away from market. I finally understand clearly the human nature. When you have misfortune, most people will stay away from you. You are the burden. When you are wealthy, everyone want to be your friends or claim the closest one. This happened to me. When I was in prime, so many people visited to have network with me. When I was down, they were disappear, rejected my distress call. :joy:

Automated trading is the solution. I just need to supervise my robot to perform trading according to my plan. They work hard, tirelessly. When they are down, I just need to have them restart to refresh their mood back. :robot:

I don’t need to stay on facing the market, I trade with less pressure as my pocket money. my day to day activity is research new trading system. When I got a good one, I will “teach” my robot how to use them. And they are surprisingly eager to “learn” and fast to understand my “teaching”. :robot:

Our organic body has limit. We have to have backup for anything. :thinking:

23

Thoughts: Trading is similar to open a business

When you open a burger stand, you have to know how to make burger. You need to prepare equipment and things related to having a burger stand. Let say, for each burger you sell, you make profit $1. Then you can sell 100 burger for 1 day, your profit will be $100.

If you sell your burger $7 each, that means the cost of a burger will be $6, you need $600 as the capital. Your profit will be 100/600 x 100 % = 16%.

That looks big, isn’t it?

Before make any conclusion, we need to calculate the capital and cost. For example you need to by kitchen equipment, promotional stuffs, cooking material and etc. There are also cost to handle garbage, rental and permit to open the stand. So in total let say we need 5000 capital to run the business. There is also expenses need to deduct every month for example 1000. You also need to calculate the cost of employee and yourselves to run the business. After all, you probably will have 5-8% profit each month.

The same thing happened in trading. You need to think capital, profit you have on every position and the cost of trading. When you can reach consistent profit about 5% / month, it’s similar to run a business in real.

The similarities are:

  • You need have a long vision to run a business. The longer you can commit, the higher the opportunity to get rewarded.
  • You need enough capital to run a business. You have to breakdown the requirement to have accurate amount of capital to run the business.
  • You need to know the cost of running the business. In trading that will be the risk.
  • You need to find a good spot to generate profit. It must be a joke to sell burger in cemetery. In trading, where to open a position.

In short, to start business you need to understand these points.

I often got asked, can I have a good income from trading?
I was asking the definition of good income. It was 500 USD.
I asked again, how much capital the person had. It was 500 USD.

Immediately, I got my mouth shut. :expressionless: …

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24

Thoughts: Trading Changes Path of Life

A lot of unexpected thing in our life. We just need to give ourselves a chance to explore them.

It was back to end of 2006. Once I left my mentor, I pursued trading by my own way. I bought many books, went to many courses and joined many trading communities. Once was Baby Pips :sweat_smile:. My intention was only one, to learn more.

After a long time, I finally could construct a strategy from every information I got. I traded for 3 months and I successfully increased my balance up to 60%, more and less. Boldly, I shared my result to my mentor, I was in his mailing list. Nothing happened in the beginning, after more then a month, he contacted me.

He asked my trading method, I didn’t tell much. In short, he explained he was managing fund from few companies. He asked if I had interest to help him. After a long talked, I agreed. I wanted experience, the benefit was also interesting. :money_mouth_face:

Since then, I was his helper to manage fund from several company. A long the time I developed an EA. The EA could mimic my performance for around 60%. The EA then used to manage some corporate’s fund.

Since I was graduated from Computer science, I was then asked to help him to establish a broker. I handled all issues related to computer, such as installing server, trading infrastructure, Managing MT4 trading server, I finally knew how to setup a broker from zero. I also learned how to operate a broker. In the beginning, we were white label broker, after less then 3 months, we were converted to a full white label broker and got self-owned server to manage.

It was amazing to look at how our clients made orders. We earned only from commission or spread. Profit was huge, same thing with to operational cost. Later I knew, many international companies were using CFD as hedging tools for their business. Even there were only few of them, the portion of their funds were extremely huge. I then realized the truth of Pareto Principle: on many outcomes, 20% are the cause of 80%. 20% of our clients were the owner of 80% of our trading volume.

This was the key that allowed me to have deeper experience with the world of broker. I learned how important regulation and license for broker, how dangerous is an unregulated broker. These knowledge enriched my trading’s method. It changed every single thing on how I saw market.

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25

Thought: Reference to Learn Mechanical Trading System

I’m not selling thing here. This is just one of the books I read. It’s good enough to guide who want to learn mechanical trading.

26

Technicality: London Breakout Strategy

After read this article few times, I am interested to create an EA for it.

Let find out its trading stats. If it’s good I will post here the result.

I really need new perspective to see market. :thinking: