I will be using this discussion to chronicle the progress of my managed account and comment on particular trades. I will never identify any of my investors (as investors) who might post here as this would be unprofessional. Whoever works with me is nobody's business buy mine and my investors.
Unfortunately we started off with a little bad luck. Administrative issues generating an error message saying 'common error' kept me from catching the move up in euro yen last night (my ATC account caught it) and a yet to be determined cancellation of my pending short order (right before the drop) kept us out of a second profitable trade. This short trade was taken for 50 pips profit on ATC account (as you can see). I am researching the cause of the cancellation. So what should have been a 2% account gain (75 pips profit as seen on the ATC account) instead resulted in a big 0 (even negative as i was testing manual trading ability because of the common error message). We'll be in the green soon though. No worries at all.
Just a note about the cancellation of the sell order we missed out on Friday.
I have located the issue as a correctly operating feature of the EA that needs to be modified because its conditions are overly conservative. The point is that it was not any server or broker error on FinFx part. The reason the trade was taken on the ATC platform is likely because there is a slight variation in stochastic values with this brokers that did not trigger the cancellation function on my EA with them. Within the next week I expect to see a more dynamic and profitable EA as this stochastic issue will be resolved.
Obviously, you understand your EA's logic better than anyone. However, I'd be cautious about changing a feature just because it kept you out of a couple of winning trades. Maybe it has kept you out of a lot more losing trades.... Just a thought.
Good advice Jprize. Whenever I make a modification to the EA though it is always in the form of a new t/f option-feature so the EA can behave as it did before if I want to go back to where I was at previously.
My normal routine is to come up with a feature or modification based on experience, chart studies of my trades, and the invaluable tool of visual backtesting, then have my programmer implement it and then see what backtesting says. If backtesting doesn’t like my new feature I usually will not even try it live. I believe something has to work on backtesting to even have a chance in live trading (but this is a complex issue).
The changes I’m making to my EA now are only minor now, fine tuning. Experience of seeing too many good trades fall by the wayside because of my current stochastic rules has led me to a hopeful solution I will be implementing soon.
I certainly will keep your advice as an important possibility to be aware of though.
You will notice a discrepancy between the ATC trades tonight and the FINFX. Unfortunately in setting up on finfx my settings for one of the core features of my EA - my pullback feature - was turned off, so we missed the pullback and only got about a third of the profit as on ATC. I have checked all settings now and we are good to go. At least we got in the green today. Hope i doesn't sound like I'm making excuses, but i want to keep my investors up with any notable differences in the trades between accounts. (also for my own records)
When I woke up today the EA had put me in short on euroyen (the first order that would have been profitable was again canceled because of my stochastic feature I am trying to get changed). ATC did not put me short as the technicals were slightly different (it was a close call).
Anyway, I was not happy about another short as the pair has fallen so much already, but I held through consolidation. Asia then came in and seemed to send the message of time to go long (with what I consider a breakout candle on eurousd), and with a boj press conference on the docket I decided to manually intervene and cut losses and then take the long side. This is very rare for me to intervene this way but my belief is that it is the right thing to do to get back the losses incurred. If we can finish up breakeven today I’ll be happy. This has been a tough couple of weeks for my EA. Pips aren’t coming easy.
What a day in forex. 3 changes in momentum. After abandoning the short trade the EA put us in, the long looked promising due to the obvious breakout, but when the move fizzled out I jumped out of most positions at breakeven. The long then looked promising again leading into London, until Moody’s made their announcement of a threat to downgrade Portugal and the EuroYen dropped like a rock. So much for the long trade.
My ATC EA happily stayed out of the whipsaw volatility today, but finfx got us in a short early that had me trying to play catch up with selective manual trades that wouldn’t pan out.
I don’t plan to involved manual trades much in this account - except when the signs seem obvious as the long was before Moody’s messed up the trade plan. Any manual trades I do will be at a small to moderate size with around 50 pip SL. (If a move seems promising i might take a couple shots at it but will get out in many cases at the first sign of danger, resulting in many 5 pip loses, or breakeven trades)
I think you may have been a bit too anxious to make a good showing in the first few days in the managed account. The last two weeks of the year is a tough time for trading .... fake breakouts etc. I'm sure you will be in positive territory soon enough if you just wait for your EA do what you built it to do.
As of 2 PM December 21, 2010 I am cutting off the stochastic feature that has been causing me problems. I woke up today to see that my ATC EA had put me in a successful short while the FINFX EA had not. I then realized I cut off the stochastic feature on the ATC account a day ago to compare differences. So this was trade number 3 in only a few days that this stochastic feature (which backtesting has told me helps profit) that has made me miss out on profit for my investors.
Jprize gave me good advice to not be too reactive based on a small time window, but I have noticed a pattern over the long term regarding this feature. I need to do extensive backtesting with the most recent 6 months included (that I have not done recently). I think I will also think about more complex modifications based on currency in tight ranges that seems to be the problem for this feature.
The bottom line is my programmer is now working on this feature with me and it I will have a nicely modified new version by next week. Until then, I will cut the feature off as on both my accounts and watch the EA very closely. I have a variety of features that control the canceling of pending orders. Not just this one.
Thanks for your vote of confidence Jprize. I certainly have wanted to make a good showing, but you are right, this is a bad time to start charting an account. I think, however, that I have had an extra dose of bad luck at the start. Things will be looking good soon though.
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