Recently I was reading about the random walk hypothesis and I’ve got interested in this idea. So, I though that it would be really fun to develop a MetaTrader expert advisor that will trade completely random. No indicators or other ways to base the forecasts on the past data, just a plain “coin flipping”. After several days of coding and testing (testing mostly) the myRandom expert advisor was ready. It enters the positions based on the 0.5 probability for each direction; it has also six parameters to control its trading. I am not sure if someone will use it on their real account, but backtesting showed some positive results — so everything is possible. Please, contact me if you get some interesting results with this EA.
Forex Blog
First-hand Forex trading experience and information about foreign exchange market that will be useful to traders
Random Forex Trading — Expert Advisor
January 8, 2008 (Last updated on December 3, 2009) by
I would be interested. I trade forex at http://forexte.com/ and use MetaTrader with free charting from eSignal.
▼Reply
It sure is a good way for entering a non-trending market. The question then becomes, how long will you keep the position? It’s important to let profits run and cut losses early, i.e. use a trailing stop but also take profits when the momentum get’s too high and starts to slow down, etc.
▼Reply
Ideally the hold period should be also random :-).
But in this EA it’s determined by the StopLoss and TakeProfit input parameters.
▼Reply
well the strategy is good with a good stop loss just like the strategies i give they all most the same
▼Reply