1.) I selected several different algorythms and build each concept into a new EA. Each EA has their own defined market condition and since the these market conditions change through the day, I wanted several systems that were consistency monitoring the market regardless of what was taking place. I didn't want to rely on one specific market behavior to make a signal and I also thought it was best to approach automation as a tool instead of a set and forget trading strategy. Why 7? Traders often classify market behavior into different cateragories. You often here words like ranging and trending but the financial markets has much more complexity than just these simple terms. Market behavior is more defined by volatility than anything else. As a result from my manual trading experience, I've seen many variations of movement and I decided to build strategies around what I've seen. Other Strategy developers and traders would classify these algorythms as scalping, countertrend, trend following, break outs, range bound, etc.
2.) My objective to automation is to eliminate manual trading all together. Even though that I'm willing to trade manually from time to time I'd rather not. I'd like to sit back and continue watching my automation at work and see how it performs by itself. Unfortunately, no automated system is perfect and I've experienced a few situations of excessive drawdown ( >10%). I've had to turn off the system and let the market develop stronger S/R levels before I felt comfortable turning the system back on. I made a few manual trades at this time, but it wasn't really necessary for recovery. The second period of drawdown, I didn't do any manual trading and I only slowed down the frequency of trading ( turned off a few strategies) to post pone/ slow down potential drawdown.
2.1) My manual trading is a systematic approach based on price action. I've been using this same strategy for about 2 years now. It is a rather growling excercise and as a result, I've had to develope an EA called 'Discipline Trader' which is basically an Auto Stopout which prevents further losses once conditions are met. This is the same EA that controls the Equity Monitoring and engages the 80% Equity Protection if ever needed. When I used this EA for manual trading, I limited the amount of open positions, DD, and the trading window which I was given to trade in. Now since this EA is controlling only Equity Protection, I have to run separate version to monitor my manual trades. This is how emotions are controlled when manual trading.
3.) Equity Protection is engaged once Open Drawdown equals 20%. At this point, all trades are closed automatically.
3.1) The Minimum lot size is determined by Account balance size. For every $2000 the Lot size is increased 0.01 Lot. therefore Micro lot sizes are needed for accounts less than $20k as a 20k account would enter a 0.1 lot size.
4.) Optimization: It's really a never ending project. The time and energy I use to spend on trading manually is now put towards development. The process is quite simple though. First, I'll develop the logic and run a back test to test functionality and make sure it it bug free. Secondly, I'll run the system on a demo account for a day or two to make sure the back test mirrors the forward and if its a go, I'll add the system to another live account for a few days and compare statistics to the demo environment. If everything is working properly, I'll swap out the old and insert the new.
5.) Many system developers and basket EA users are still waiting for Myfxbook to incorpoarte 'Grouping of magic numbers' and once this is implemented, each system as a whole can be analyzed better. Unfortunately, I'll never share the trading history of each individual strategy for evaluation as reverse engineering is something that is easily done. Since I'm running such a large amount of strategies and trading frequency is into the thousands I'm less concerned about sharing the trading history as a whole.
-- Signals available at Zipsignals and results are really good. Our system has one of the lowest drawdown with exceptional gains. When setting up the copier for Zipsignals, the Lotsizes were 1/10th of our std risk profile, therefore the ROI is about 8% and DD is about 2%.
Our Discipline Trader EA compares Account Balance to Equity Account to determine the 20% DD and then engages the Equity Protection.
However, since the trades included a stoploss, trades were being closed out (stoploss hit) reducing the balance and would have prevented the DT EA from engaging the StopOut until the difference between Balance and Equity was greater than 20%. I was rethinking this approach and I closed these trades manually.
If I don't include a stoploss then our DT EA would close all trades based on the difference of Bal vs Equ. The benefit of this is that our StopOut would engage faster because the trades would all close out immediately, instead of positions hitting their stoploss and farther allowing a larger overall loss.
Since our account was up about 5% in Account Balance from the starting of this week, our initial loss would have been minimized to 15%.
Another way I can do this is include a new feature in our DT EA to close all trades based on Fixed Equity and readjust the value each week or each day, then I could still implement a stoploss on each trade. 🙄
eiyibilgin posted: Today (24.02.2012) I have just started traded with you. but a trading disaster has happened. Fortunatelly my account is a demo account. I am lucky or unlucky?
250 pip move upward on EURUSD within 48 hours was unlucky for our system as our first few signals were Short on market open ( monday). I wanted to close down the shorts a few days ago as EURUSD just ranged back and forth without giving direction but I told myself I wouldn't intervene unless DD was over 10%. And once 10% was reached -__>>>> Momentum took off.
When EURUSD went up the ea opened trades allways sell. I was expecting direction down but unfourtuaatelly big boss do not let it down. By the way some eas has earned today such as https://www.myfxbook.com/members/fxsessionrobot/forexsessionrobot-eurjpy/237638 watch out this ea its strategy is wonderfull as a ea maker may be you can interested in this ea. I am only a follower I wish I were an ea maker. Take care
Thanks for sharing this other bot. It looks pretty good behinds How it Flips the trade from Buy to Sell and adds a Lot size 4x the original position. It would be interesting to see it run with fixed Lot Sizing like my Demo account that runs at 10 times the standard risk.
One trading logic has been piling up the positions far too aggressively and I've made the necessary changes to prevent this from happening. I've also resorted back to making the longer term fundamental analysis manually as i did in the previous months. More details here - https://www.pipinvestment.com/update/forex-i007-march-outlook
It is important to me to be transparent about my automated system. I do not want you to think that this is something that it is NOT.
To highlight some of the main points.
1.) We can enter up to 20+ Micro lots on a $2000 min Balance.
2.) We add to positive positions and bad. This is not grid or martingale, but since there are several trading algo's as a whole, there is averaging down and position building.
3.) Scalping logic enters a larger lot size
4.) The master account has Equity Protection. We are the very 1st signal provider to trade within a CONTROLLED Drawdown of 20%. Therefore, Equity Protection is at 80%.
5.) We continue to develop our algorithms and make proper adjustments.
6.) We have drawdown. No signal is 100% accurate. We can miss out on a 100+ pip Burst of momentum.
7.) Our objective is long term growth and not over achieving. Our goal is roughly 9-10% a month at our standard risk setting. ( min lot 0.01 on $2000 balance.)
If you are looking for precision and no drawdown, this system is not for you. If you would like an INVESTMENT for long term growth with equity protection and stability Forex i007 can offer an alternative to other investment classes. Please ask questions before signing up and following my system. The results on Rent A Signal display clearly what Forex i007 is.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.