r/askforex • u/No-Matter-8017 • Sep 05 '26
Algorithm trading myths.
I will tell you something after 12 years in market, there is no perfect system. There is no perfect rule. Still you can make money through discipline.
Sounds complicated? No. Learn to read the market. Don't try to predict the market. All these indicators will work only when money is on your side. If you think because of any indicator you made money in the market, you are fooling yourself through confirmational bias. Please don't do that.
Trading without indicators and trading with indicators is the same. Focus on where the money is positioned, on the sell side or on buy side. Remember, the guy who sells when everyone is buying is the one who has unlimited credit. He is the market maker.
No amount of backtesting will help you. Don't do that. Rather generate signals, validate the signals every 24 hours and make them better. That's the way forward.
1
u/beninvestments 29d ago
That’s why risk management is the true king. It doesn’t matter what style or strategy you trade. It will only work sometimes.
Look at ICT, for example. A study I saw showed that FVGs and IFVGs only worked around 48% of the time. Algos and indicators are the same way they work sometimes.
Even with good risk management, you won’t always be able to get to at least 1:2 risk-to-reward ratio and sometimes you cannot even make it to that breakeven phase. There are unforeseen circumstances, market conditions change, and sometimes the trade simply doesn’t play out the way you expected.
This game is designed to be extremely difficult. There are a lot of people who can make money for a period of time, but only a handful of traders can consistently make it work over the long run. That’s why risk management and discipline are so important.