Thanks for the positive words, Jprize. Yeah, the EA is designed to go into sleep mode when there is too much volatility, or if currency moves too far too fast. But I estimate there would have been 3 successful short trades over the last 24 hours if I had left the EA on. I just didn't think the BOJ would let the yen free fall like this. But yeah, once the first big candle hit if we were not already in the trade the EA would say this is too extreme for me, time to take a nap. I didn't design a gambling machine, but rather a high probably trader.
over the long term conservatism always pays off in currency trading, i believe.
I have to say I was so frustrated this evening when I came home and saw that I had missed the BOJ intervention. The trade was missed by the FIN FX account but ATC caught 58 pips before a pullback stopped me out short of a nice cash in. I am taking steps now to set up a block managed account at ATC brokers for anyone who may wish to have an account there.
As I said before friends, development on my EA will continue as I try to make it more complex and able to take advantage of a variety of situations. However, sometimes small differences with broker technical readings affect the issuing of orders, so it seems like a good idea to have an account running the EA at different brokers (as I do). ------------
I also want to say it is time that I upgrade myself. I have not had one important tool necessary to manage accounts properly, and that is an internet phone. Times that I am away at work or other places I have not been able to take advantage of situations, like the intervention I was waiting for.
To manage accounts properly I must come over to the 21st century and get a smart phone so I can properly manage things. I will also set up a VPS account in case of power outages, etc. So hopefully within a week I will be in better position to watch the accounts properly.
I’m ready for this unpleasant week to be over. Have a great weekend everyone!
The ATC block managed account is just a few days away from being operational. I will manage the account for friends and family (up to 15 accounts) as I take steps to get my CTA license so I can trade an unlimited number of clients. I will PM you about the details.
ATC has been accommodating to me, letting me start a block account with less than 50k so I look forward to continuing trading there. It took some work but ATC is going to let me move my individual account to the block account, and I will continue to track the account at fxbook.
ATC also assures me the verification issue (that atc accounts cannot be verified with fxbook) will be resolved shortly.
Finally, I have to say I am more on top of things now as I have an internet phone and can even control positions through my phone if I need to. Next step is to get a backup computer and VPS operational.
I look forward to a prosperous future with both managed accounts.
I am happy to announce the beginning of my new managed account at ATC brokers. I have been tracking my individual account with ATC for almost 5 months now, and now that account has been moved into a block trading account (and will continue to be monitored) and we should be up and running Sunday evening.
What I am particularly excited about is that given the larger equity in the managed block I will implement a strategy of splitting my normal trade size in half and leaving one half of the trades alone, allowing my EA to do everything. The other half will be mainly EA initiated trades that I will allow myself the latitude to cancel pending orders, take profit early, cut losses early, etc. as I have been doing thus far.
For the most part (in the last 5 months) I am not helping profits by my interference (far from it) but because backtesting shows me that if I don’t ever intervene with EA trades there can be rare events (2 or 3 in a year) of as much as 2 or 3 worst case scenario trades (-5 + %) in a row, and the only way I can attempt to prevent this is to intervene when I think I should.
Draw down has been kept from 7-12% so far and I believe this max level can be held here.
I am also so excited that my intense study of my EA’s logic and features is resulting in some new features I am developing that I believe will take the profit potential of the EA to new levels. I am frankly disgusted at the amount of missed trades by my EA but as I am overall continuing to make profit I have to go with it.
I honestly believe we will do a lot better in the near future.
I think my investors will see a new level of profit return within 1-2 months as I am very close to solving what I believe are some core issues relating to my EA’s ultra conservative operation that generates stability and modest profit return but misses too many good opportunities.
The future will be very exciting and rewarding for us all I believe.
I never thought I would get this far. In 5 years of trading currency I lost my a$$ for 4 years then finally figured out a real focused strategy for getting a little bit consistently with the help of my EA.
For the longest time I recalled the words of Wayne McDonald of fxboot camp (love those guys) who said 95% of currency traders fail.
For awhile i was thinking it may not be possible to trade currency by retail traders, but I have come to believe that it is definitely possible, it just takes focus, picking your spots, good tools, and discipline, tempered by an awareness that any one trade can result in bad losses if you don't maintain hard and fast SL's (the line in the sand). That is also why i keep working to shift all the work onto the EA as EA's don't suffer from the emotional swings we can sometimes be subject to.
Okay, enough of this lofty speech lol... Thanks again, and good to hear from you
A quick summary of the last three days and why profit has turned down:
3 days ago: I was running an extended backtest on the same platform I was trading my EA on and woke my EA up when it should have been sleeping because of market volatility – We were put in a trade (Fin Fx didn’t put us in – because the EA was sleeping) and we lose 320. This problem is fixed now – I run all backests on a separate platform.
2 days ago: I try a manual trade with one minilot, get caught in a reversal and lose 130. The EA gets back 90. frustrating
Today: the EA did not cancel a pending order in time when price fell quickly (and my programmer is fixing this issue now with a new safety feature i created) and we got put in what I thought was a bad long. I manually exit when it looks like Asia is going to sell off like yesterday. We lose another couple hundred. Now the EA has us long again and taking profit ironic.
I’m not too happy with the world right now. : ( But it’s just another few days in the currency market. I’m improving the EA and becoming more organized because of these events. The EA can handle more and more changing situations.
There are so many features and redundant safety features necessary to successful trade currency with an automated system. I’m almost up to 30 thousand lines of code in my EA now. We’re getting closer and closer to a supercomputer trading machine…
Our profit will take off sooner rather than later.
That’s my positive affirmation to end my whining post with.
Hello also to some of my new friends who are tracking my trading. I look forward getting to know many of you. Guys, I don't know why the charts are messed up tonight. Something going on with fxbook...
The last several days has been a dance of one step forward and two steps backward, over and over. Trading EuroYen is like being in the middle of a dog fight lately. The market can’t decide on direction for longer than a couple days.
I have had to manually intervene twice to cut our losses the last couple days. And even with this I lost 3% of the account yesterday. Much more of this and I’ll have a one person managed account :(
------------ I will soon focus on developing a feature to better keep us out of trades in consolidated markets (as we had for several hours before yesterday’s reversal). Trading momentum is challenging, but the best approach I believe.
The trade we lost 3% on was canceled twice by the EA (something that happens in a sideways move) but the pending order was re-issued again and entered.
I will use this opportunity to focus on a feature that makes the conditions to re-issue canceled orders more strict and then see what backtesting says. This seems like a sensible idea. If the EA is canceling its own issued pending order than there is indecision here and we don’t need to be entering the market apart from a stronger than normal signal.
------------- Lastly, I want to vent my extreme frustration at the missed upmove tonight (we could have recovered our losses). Tuesday is one of the weekdays I am away from 3-12 EDT and the EA has a sleep time window from 3-5 (backtesting tells me to put this sleep window here). This window was our window to enter the long. After that price took off too fast.
The point is I would have put us in manually if I was home as normal. I saw the move on my phone but manual trades are only done under very focused conditions. My EA is the trader, not me.
The bottom line is that in order to manage my accounts (and future accounts) as I want I need 100% of my time and focus, and I also need more equity to manage so I can make a living from this as I want. This is my goal.
Eventually I hope my EA will be able to catch breakouts like tonight, but this type of trade is a most difficult challenge technically to capture as price often accelerates right toward the end of a move – just like the prior reversal we are now looking at. Still, I think I can make more progress in this area as I already have a breakout feature. I just need to improve it.
Thanks for reading my meandering talk, friends. I just wanted to get some thought off my chest.
I will try to respond to the various emails I’ve received over the last couple days. I have a lot on my plate right now.
I, for one, like your thoughts about trading. They're unique and insightful. Good to see you in profits. I have the impression that trading is the art of letting go ... we'll miss some of the best entries, we'll have to give some of the profits back ... but there's always another day ...
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