amenobh wrote:Friends, you did not include features to easily find these figures in the charts because it's a difficult thing to define and do, or because these techniques are not worth the work ? A lot I found on the internet about forex focuses on these figures.
Hi Amenobh,
I think you need to understand the strengths and limitations of FSB to know how to use it to it's fullest and how to avoid pitfalls.
FSB is more of a rule based trading software, not a Pattern Recognition software.
You may be barking at the wrong tree.
You need to understand the features of each indicators and create the appropriate rules/opening/closing conditions to "instruct" your EA to carry out your trading plan/strategies.
From what I gathered from your sharing.
1. You can spot a repeating patterns such as "Morning Star" etc but you have not quite figured out ways to translate all these pattern "recognition" into trading rules.
2. You are hoping that FSB have a pre-make trading rules in the list of existing indicators section that you can use, to help you spot these formation/patterns, unfortunately FSB doesn't pre-make it for you (unless you use the Generator and input these indicators and instruct the Generator to search for patterns using these indicators with certain parameters etc...it's another learning curve.
In the past, I mentioned that we need to input our own trading rules into the Generator/optimiser to "guide" them towards certain level of success in finding robust EA. Effectively, what I was suggesting is that, as we input these trading rules (which is actually trading patterns), we are guiding the Generator to find profitable combinations that will work well with these trading patterns/rules.
3. FSB is make to search for profit...equity curve, not search for trading patterns.
FSB search for EA that fit certain criteria and profitability. Hence you may get so call profitable EA that happen to fit the curve out of random probability in the past (historical data) but may not profitable in the future.
4. Not all backtesting systems are built the same.
Searching for profitable EA based on pattern recognition, in my opinion, is more robust cos patterns tend to repeats by itself and hence has higher success rate of future "predictiveness" since these patterns repeats by itself and hence it is able to reproduce higher consistent success in the future (again depending how robust and well thought out, are your trading rules).
FSB backtesting rules are not able to "see" patterns...it only see numbers and generate/optimise EA based on profitability and other criteria.
If you are looking for a software that is able to recognise pattern and search for EA based on pattern recognition...you are looking at the wrong direction. FSB is not the answer.
Pattern recognition software such as neural network are made to search of repeating patterns and find trading rules based on these patterns. I'm currently testing out this software call Neuroshell.
With Neuroshell, it's very easy to create a EA within minutes if you know what indicators you want (without any programming skills needed). It searches out for patterns and find the best patterns out of a range of patterns you input into the system. It has many pre-existing candle patterns (although I'm not a fan of such patterns, it's too "vague" in my limited knowledge). FSB is not the only software out there, whereby you can create EA within minutes. Neuroshell has 800 indicators to use and the good part is, if your indicator is not there, I'm able to create my own complex indicators based on the existing features that allow me to build my own formula (if you know how to utilise the features). I'm not here to promote this software cos I'm still don't know whether those patterns that it is able to identify, is really profitable in real/live trading...we sometimes get fantastic results but failed miserable in live/demo testing. Hence, I have yet to fully verify Neuroshell's capability.
5. All software claim to be good in certain things...bottom line is, can it delivery the results?
At the end of the day, we are hoping the investment we put into our software would yield us good results...in our search for profitable EA. You would by now know whether "What you see, is what you get" in your experience with FSB, is it really that easy to churn out profitable EA? Are those EA that are profitable (in FSB accurate backtest results), really are that accurate/profitable in real/demo trading? I can tell that you are a discerning user.
Likewise, I'm still in the process of testing out Neuroshell, it claim it's able to identify patterns and hence now I'm training my neural network to identify some the trading patterns I'm using and hopefully, it can fine tune it better. I've yet to test out the result of the EA created by Neuroshell, hence despite it's claim and ability...I can't say whether again.."what I see, is what I get".
Bottom line, if you really want to use those candle patterns in FSB, you really need the discipline to translate these patterns into trading rules for FSB to execute it on your behalf.
I started out FSB with my own sets of patterns and I have to, through many trials and errors put these trading rules together into a winning combinations....that's the discipline a lot of FSB traders lack, we like to search for easy fix solutions.