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Wallstreet Forex Robot (By Birt )

Gain : +1.82%
Drawdown 40.19%
Pips: 571.7
Trades 1793
Won:
Lost:
Type: Real
Leverage: 1:500
Trading: Automated

Wallstreet Forex Robot Discussion

Birt (birt)
Aug 04 2011 at 21:49
166 posts
I'm sorry to hear about your drawdown. Someone on my blog recommended not trading at all until about September and it's probably a wise thing to do. However, it's a two-faced coin: if you stop trading now or reduce the lotsize, Murphy's law will most likely kick in and WSFR will start making a lot of money.

On a different note, if I'm not mistaken, WSFR comes with money management disabled and 0.1 lot size. You mentioned using default risk and obviously you didn't use a 0.1 lot size; for some reason, the drawdown figure seems to be wrong as well yet the relatively rapid growth suggests a higher risk, so I'm wondering what risk were you using? Was it 5?

Myk2elS2ilver
Aug 04 2011 at 21:59
150 posts
Thanks for your reply.
You were right about MM disabled. I HAVE enabled MM and set it to 5%. But I had recovery mode set to default=false.
After the steep losses of today and yessterday, I have the risk reduced to 2.5% BUT I have enabled recovery mode to compensate somewhat the loss when the bot starting to generate profits at 2.5% (instead of the 5%). This is only useful when the bot still makes bad trades, the recovery mode put it slowly the risk back to 5%, so maybe then I can come back into the positive. That is now my plan.
What would you do in my place? Leave the 5% setting on? THAT is so hard, but maybe the only way to come back on track?

 

Myk2elS2ilver
Aug 05 2011 at 06:58
150 posts
{ 'id':'22281', 'type':'1', 'error': 'false', 'file':'fight_back.png', 'path':'', 'isImage':'true', 'message':'' }
I see the WS Bot fight back this morning. But the day is not over yet. But it gives hope (fight_back.png)

Attachments:


Birt (birt)
Aug 05 2011 at 08:17
166 posts
Well, I really have no sound advice in this case. Thing is, if you turn the risk dial higher to something like 10 in hopes of getting out of the drawdown quick, it will most likely run into another loss and put you into an even larger drawdown. On the other hand, if you set the risk at 2.5%, it will likely have a winning streak that will make you curse yourself for not setting it to 10. Fate is just like that, typically.

Perhaps the best course of action is to simply disregard the drawdown, configure it on 2.5% which is a very sensible risk setting and let the EA move on. Anyway, just for your information, with 2.5% risk I estimate it'll take some 2-4 months to recover. As for recovery mode, personally I dislike that in all EAs - it's just setting you up for a big surprise when it increases the lot size and the market goes against it, digging deeper into the drawdown instead of digging out of it.

Myk2elS2ilver
Aug 05 2011 at 14:47
150 posts
Birt,

Do you understand the mail I just got from LiteForex???:
--------------------------------------
Dear clients,

From 08th of August, 2011, since 00.00.00 (GMT + 2, terminal time) the Company will make Margin Call Level is set at 100%, and the Stop Out - 50%. Please take notice that the new conditions will apply to both old and to the newly created accounts. Please, take care to maintain a sufficient level of resources to ensure collateral requirements for open positions.
---------------------


EDIT: My current Margin rate is 2557,63%. According to this mail it will be reduced to 100%! So that is a change of more then 25x!! Wow. I hope not.

Birt (birt)
Aug 05 2011 at 15:06
166 posts
You got it a tad wrong. The current stop out level is 30% while (I guess) the margin call level is 50% and they will now get increased to 50% respectively 100%. Basically, the margin call level is when you get warned about your margin usage and the stop out level is when your positions are fully closed. Take a look at https://www.100forexbrokers.com/margin-call-vs-stop-out for more info.

You don't have anything to worry about if you're not overleveraging your account and you definitely aren't if you're using WSFR with 2.5%-5% risk.

Myk2elS2ilver
Aug 05 2011 at 15:09
150 posts
Unfortunately I use the LiteForex account also for some silver positions. If I understand you correct it is now changed from 50% to 100%. That is an increase of 2x. That is what a call a lot.

EDIT: Thanks for the link

Birt (birt)
Aug 05 2011 at 15:30
166 posts
In all likelihood, you are not affected by this change at all.

To be very clear about this, when you have some positions open, your trade window will list two numbers: equity and margin. The margin call is nothing, you can simply ignore it, all it does is print a message. The stop out is when your positions are closed and right now it happens when your equity falls below 30% of the margin used. In the future, it will happen when the equity falls below 50% of the margin used. Sure, it might seem like a dramatic increase, but if you're in danger of a stop out, you're doing something very, very wrong with that account.

Either way, take a look at your current equity and used margin; chances are you're very far from a margin call or stop out.

Myk2elS2ilver
Aug 05 2011 at 15:37
150 posts
Thanks again. I see that new policy is from August 8th. I have already made a screen capture just for comparison. Also my daily trade statement shows the (current) level .

Myk2elS2ilver
Aug 06 2011 at 09:41
150 posts
Do you think is it wise to leave the bot Monday offline because of this? It is very fundamental news. https://www.ft.com/intl/cms/af2c4fac-bfc2-11e0-90d5-00144feabdc0.pdf

United States of America Long-Term
Rating Lowered To 'AA+' On
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Burden; Outlook Negative

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