Programming changed in the weekend - now the EA only trades in the upper and lower quadrant of the historical range.
The risk has been raised to open larger trader trades and/or trade a tighter grid.

For some reason, Instaforex has changed the minimum lotsize to 0.1 instead of 0.01 - effective of 22-06-2010 (sometime before noon)

I would love to see your comments on the system, all trades are disclosed, and you can analyze the system per magicnumber - 2 numbers per currencypair. Remember, that in the weekend 19-20 of June, the programming was changed to only trade the upper and lower quadrant of historical range.

Attached is 3 examples of settings for the EA - if anyone's interested to get anything explained in detail, just let me know...


<a href='http://www.myfxbook.com/files/GridsForPips/audnzd.set' target='_blank'>audnzd.set</a>
<a href='http://www.myfxbook.com/files/GridsForPips/cadchf.set' target='_blank'>cadchf.set</a>
<a href='http://www.myfxbook.com/files/GridsForPips/eurchf.set' target='_blank'>eurchf.set</a>

This is a gridtrading system, drawdown is expected. The old orders from before the 21st of June - 33 orders - are with small lots, thus creating low drawdown. Furthermore, its only 2 of the currencypairs (AUDCAD and NZDUSD) that has trades within 50% of the centerline which would be expected to prolong for a long timeperiod.

I expect zero net profit for the first month or two, because the system builds up a pool of orders on the currencypairs that are moving away from the centerline, but once they eventually return towards center they will close in profit (some not because of negative swap, some larger because of positive swap).
When they do return I also expect other currencypairs to begin wandering from center towards historical upper or lower recordvalues (for the record, all currencypairs has minimum 10 years of history - either in the chart or as fixed upper/lower/center values from other sources), thus always creating DD, but I'm confident the AccountEquity will begin to rise once the system has traded for a longer timeperiod (I've traded for less than 2 weeks with changing conditions, programchange and minimumlot raised from 0.01 to 0.1).

If you review my current open trades, you'll see that I'm actually in positive swap at the moment (0.20 Eurocents), and with the diversity in traded currencypairs, I have no worries regarding drawdown versus profitability.
I'm currently trading with an internal high Risk-setting 8 (lowest is 1), which means that the program divides the full historical range with 8 before it calculates gridseparation and lotsizes which involves Maximum number of open and pending orders minus total open orders, free margin (not just Accountbalance or equity), spread or chosen minimum gridseparation.
If it calculated the grid and lotsizes based on the accountbalance the grid would have the same spacing, and eventually blow the account, if priceaction went beyond the historical range. This is not the case with my program because of the above.
I will now do some backtests and upload to the strategies-section and furthermore attach them to this post. For each strategytest, there will be 2 following screenshots, taken in the beginning and end of each test to show which high/low/center-values that are being used in the beginning and end of the test, thus clarifying how much historical widening the program may be able to handle. It will take some days to finish, because a 1 year test usually takes hours, and I'd like to do some 5 year tests for clarification.

Sincerely yours

Soeren.

It's about the nature of change and it's roll in trading and it does not bode well for a grid based on lack of change.