I developed a fuzzy mathematical algorithm based on the trend for tradings.
What is the Logic of the EW Trends? It is based on A Fuzzy Model developed by me.
Vague or fuzzy data and application in several fields, such as psychometry, reliability, marketing, qualitycontrol, ballistics, ergonomy, image recognition, artificial intelligence etc. A typical problem where vague data arise is that of assigning numbers to subjective perceptions or to linguistic variables (such as “enough”, “good”, “sufficiently”, etc.). In fact, there are many cases where observations cannot be known or quantified exactly, and, thus, we can only provide an approximate description of them, or intervals to enclose them.
For instance, “in measuring the influence of character size on the reading ability of a video display terminal [ … ] the reading ability of the subject, which is essentially the experimental output, depends on his/her eyesight, age, the environment, individual responses, and even how tired is the individual. Some of these factors cannot be described accurately and [ … ] the best description of these kinds of output is that they are fuzzy outputs”  .
The EA's optimization problem: The objective function is min. drawdown associated with max. 30 pips losses and 8 pips profits.
We want to obtain a good gains at the end of the month with min. drawdown. The min. drawdown also means min. risk. In this EA, it is very important to work with very little daily drawdown. I think this logic must be used in any others EA.
Please, pay attention to the EW Trends EA's daily drawdown on the graphs. This also allows us a good sleep :) (no stress)! Getting good profits with high drawdown (high risk) is not a mathematics. However, to obtained good profits with possible min. risk is a mathematics.
Some strict rules in the EW Trends EA: The EW Trends EA allows only one opened trade at the same time. The max. trades in a day is 5 trades. After 5 trades, it does not open any trades for that day. It has a border to limitate losses and (optional) profits. The EA runs with maximum possible 10% losses in a month.
Controlling Drawdown: The JupyteR EA has many closing trades algorithms in itself. Max. loss can be 30 pips for a trade. The EA stop to trade for that day if it has one loss. This means that the EA doesn't allow any further traders for that day after a loss. According to the its closing algorithms, the EA can close a trade before 30 pips losses.
Murat YAZICI, M.Sc.
1. H. Tanaka, H. Ishibuchi, Identification of possibilistic linear systems by quadratic membership functions of fuzzy parameters, Fuzzy Sets Systems 41 (191) 145-160. 2. H. Tanaka, H. Ishibuchi, S. Yoshikawa, Exponential possibility regression analysis, Fuzzy Sets Systems 69 (1995) 305-318.
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