No Take Profit Experiment

Hey guys, this is a journal or experiment that I've really want to do for a while.

I've been playing around with no stop loss EA systems, and generally if there is no manual intervention then it ends up blowing the account. Below is an example balance/equity curve of no stop loss systems:



I want to test flipping that on it's head and instead of having a small TP and no SL, have a small SL and no TP. Below is an example of balance/equity curve of the same test above with the TP and SL switched:



You can see by the red lines where potential good ROI returns could of been had. However, you would need to be discipline to wait for something like this which is not even guaranteed to happen. However, my experience tells me that eventually something does happen.

So I've setup a demo account (£5k balance) running one of my EAs to test the theory. Below is a screenshot of results after day 2. As expected, I've lost a lot of trades with a fair few trades in profit however, not yet recovered the losses. Currently running on circa 15 pairs.



The video below goes into more detail of the experiment. Will post regular videos with updates.



zoheb01

Great experiment, and will be good to see the outcome. The glaring undoing I can see is, if it were live many more stops would be hit as they form part of the market and easy pickings especially during Asian session in particular.

Totally agree. I think this concept can be tweaked/optimised simply by setting a larger stop to give the trades more room to breathe.

Like I said in the video this idea is simply a very large reward to risk ratio where a handful of “winners” will recoup the losses and more (the theory anyway”

I did some experimenting with one of my EA's and it appeared to achieve positive results sooner (which is also logical) using a tighter stop.

Are your entries purely random and frequent?

Thanks cogs for also experimenting. My entries are not random, it's a trend trading system. The EA firstly identifies momentum using the bollinger band and candle sticks. Once momentum has been established, it waits for a pull back and enters in the direction of the trends momentum.

Episode 2 - No TP Experiment

Episode 3 - No TP Experiment

Episode 4 - No TP Experiment

Episode 5 - No TP Experiment

Episode 6 - No TP Experiment