Hi SOLAR, I have managed to get the pips because My EA knows when the major trend is up or down, when trend is accelerating, and when a pullback is significant. Prior to this strong pullback we experienced last week, there was only one other significant pullback in the currencies I trade ober the last one to two months. So the system waits for the trend to resume and starts hitting it again in the direction of the continuing trend, capturing more pips. So as long as the trend is continuing I make good pips to prepare for the pullback days. If the a pullback becomes a trend reversal, the system will start trading in the opposite direction using some good lot management to hedge the lots in the direction of the previous trend but adding sufficient lots in the new trend direction to ensure continued growth in pips as the new trend continues. Thats why I do not rely heavily on stop losses. The risk is I can get a large floating drawdown of my pips/profit and needed to observe the extent of such a drawdown, for different trend weakness to optimize my hedge trigerring. My system can change stoplosses in the event of a catastrophic price drop, but those are rear occasions for the currency pairs I trade. The hedge I am testing will hedge when the major trend weakens to protect profits/pips not wait till the major trend changes as it does with this systyem. However, I am a curious guy and want to see the max floating drawdown I will suffer if I let the trend changes and observe how the system tries to recover in the new trend direction. The system already experiences a trend change in early June and recovered nicely without hedging but as it trades and gradually increase lot size, hedging becomes more important to reduce drawdown.

For determinimg trends, I use Heken-Ashi, MACD, CCI signal combinations that I have developed into some good custom switching indicators I use for triggering trades, determine trend acceleration & weakness and analyze them from multiple time frames to increase the probability of a successful trade. I am constantly observing reasons for drawdowns and profits to improve the systems & reduce risk, so thanks for the question.

Hi Malcom Sankoh,

Waiting to see your hedging in your EA. Try to figure out when to activate hedging when the major trend is against you.

Regards,
SIM