Hey metacoder I was thinking about your position sizing. After running for a few days I noticed that the lot sizes are all the same.
I haven't actually sat down and done the calculations, but wouldn't the lot sizes be different within a basket to truly hedge out certain currencies?
This is interesting, similar to trader101 methodology. I was researching clone of this type too sometime in 2009. The difference is I use 10 pairs so it make a perfect hedge, use Fractional Product Inefficiency, and use rate of change between certain time intervals, instead of pips, to check currency momentum movement.
the basket is
Things about 5 pair combination is they totally hedge any individual currency involved. You can check on pairs above.
Attached excel is the result of that research. But I forget what parameter is the trade qualification on those momentum data lol. I only remember that, I picked 3 of the largest % change, then use a breakout trades on that 3 pair if it qualified according to (? something about which currency is the pairs mover I guess?) with 1 RR ratio trades. And I remember why I stop, its because often there is not enough time placing buystop / sellstop just above recent highlow, manually, on pairs that have huge momentum spurts. And you can't use the usual price retracement like usual breakout method, because this method is about capturing those momentum spurts.
3 month hypothetical (since live result is facing difficulties mentioned above) result yields around 65% winrate on 1 RR.
I just refreshed the EA upload in post #1 to include the more general symbol string handling, as described here: http://www.forexfactory.com/showpost...42&postcount=5
The best way I can say it is -- in one group of 7, we buy a set of currencies against another specific basket of currencies. In the other group of 7, we sell the exact same set of currencies against the other exact specific basket of currencies, so things are balanced with same lot sizes across the board.
Something people will notice is that not many cuts and reverses are done.
This is a GOOD thing, because when we use looser criteria for cuts and reverses, we get so many trims for losses that it takes longer for the equity to climb to a profit level.
Better to wait and do our trims when there is more of a real sea change for or against a currency.
Very interesting thread.
I am signing in.
Just uploaded a version 02 in the first post of the thread. Difference between ver 01 and 02 -- ver 02 only requires one confirming pair for each biggest loser.
Still No Trading
Is anyone else having this problem?
Your account (starting equity) balance might be too small for your account type.
The MinMiniEquity and MinStdEquity settings say you need at least $500 for a mini account and $10,000 for a standard account.
Yup - That was it I lowered the amount and it started trading.
Please note the following.
Version 01 requires that all confirming pairs confirm the action of the biggest loser before a cut'n'reverse will be executed.
Version 02 requires that only one confirming pair confirms the action of the biggest loser before a cut'n'reverse will be executed.
So if version 01 isn't giving any cut'n'reverse action, version 02 is likely to give it sooner.
I started version 1 mid last week and haven't seen any cut and reverse action yet, as a matter of fact. Trades have been open unchanged for days now.
I'll put version 2 on tonight and see how it does.
It takes sea changes in the market to trigger action.
I started yesterday and there was 2 cut and reverse but equity still negative doesnt look good...
Sorry, I couldn't resist.
Haven't tried the EA again though.
© Forex Factory