Good days versus bad days. Fewer bad days than good days with recovery algorithm (non-martingale) to maintain equity curve. Targeting an average of 1% to 2% per day gains. I've just figured out a way to automate it.
The metrics I am currently using are these.
These are for initial session only as when in recovery would be more dynamic can can very as the the degree of the bad day.
Good day target 1-2%
Account load 5% or less
First Bad Day Draw Down optimal 5% or less
Second Bad day Draw Down 10%
Third Day Drawdown 25%
I'm testing a max drawdown emergency stop of 50%.
Anyone who knows me knows I am a gambler, not a trader. I built this to be similar to playing all seats at the blackjack table with a martingale strategy, but being more dynamic as to trade entries and not as arbitrary as a pure martingale.
I guess the difference between my algorithm and others is that using the blackjack analogy , my revenue is driven from the table (account) not the individual seats (Trades) each trading day. With the goal of producing daily, budget-able results.
Added and updated thread April 14th, 2024
EA uses multiple trades, trending pairs offsetting ranging pairs resulting in a daily account target. When reached, EA shuts down and awaits next day. If not reached, recovery algorithm calculates amount needed to reach target and adjusts lotsize accordingly. As opposed to arbitrary martingale which simply doubles lot size until success or failure.
The failing of most recovery strategies including martingale style is that initial lotsize is calculated on the entire account balance. Latest version now includes a reserve balance that is not included in calculating initial lotsize, therefore allowing more room to recover and keeping reasonable drawdown.
The largest challenge in trading multiple pairs in an algorithm is the inability to back test. Forward live/demo testing is the only option. So, it takes time to view patterns of behavior, make changes, and view the effect. The most stable account set file will be the winner and be used in the managed account this summer.
I'm thinking if it pans out, I really don't want to be in the business of selling EA's. But may consider it as Metatrader is being limited and may become non-existent for US traders. Not sure what options might be available to market something like this. It requires high leverage if high returns are to be expected. Low leverage is fine as well, but the return and equity curve would be lower. As an example...
Leverage 500-1 $1000 Balance Required 1%-2% Average returns per trading day.
Riskier adjustments can be made to the EA.
Leverage 50-1 $10,000 Balance Required .1% Average returns per trading day.
Attempting to only use 5% of account balance (load) maximum to allow for recovery algorithm after losing sessions.
We will see what happens and what opportunities arise...if any.
Currently thinking of new ideas on how to share this EA. I've worked too hard and spent too much money on coding to give it away. I would like to see some return on my work.
There will be a Managed Account available this summer if all pans out.
I'm running my test accounts below. All accounts on my profile use the same EA with varied money management settings.
https://www.forexfactory.com/forexscotty
All account stats can be viewed on my profile as only 2 are allowed per thread.
UPDATE 5/14/2024
After Traders Way cut their US customers off with regard to the MT4 platform. I had to look for a new broker. Here is what I found...
www.plexytrade.com
Yes, it is new to me too. Just signed up in the last week. They recently acquired LQDFX. That is how I found out about them.
This does not affect the plans of a managed account offering this summer. But hopefully will open the door for US clients.
Yes, this is a referral link. You don't have to use it. Please do your own research on their validity. I will take the risk with a new unregulated broker as well. The only thing I will say, I was with Trader's Way for 15 years until they dropped US customers. And they too, were unregulated. But I received all withdrawals and refunds. Will they be the same? Only time will tell. All results will be posted for all to see.
Demo accounts and live accounts have been opened...pretty seamlessly.
Customer service was very responsive.
Do your own research.
I'll be the guinea pig and see how it works out.
MT4, MT5, High Leverage and accepts US customers. For a recovery algorithm or Martingale, High leverage can be a game changer or worst enemy.
The truth will tell when I go to make withdrawals. I have requested that they be added to the FF Trade Explorer broker list.
JUST NOW: UPDATE 5/15/2024 I'm happy to report that my request to have PlexyTrade added to the Trade Explorer broker list was approved by FF. I'll be the lab rat and post my live account results running my dashboard here on the dashboard forum as well as on my profile.
UPDATE 8/1/2024: Version 2.44 has passed functional testing and now is time to put it to the real test. LIVE ACCOUNT.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722540783
As with the previous versions, it continues to use a combination of Indicators to verify price direction prior to opening a trade. It monitors 10 charts. Orders may be placed on 1 pair or all of them if the conditions are present. Each order has a safety stop loss, but relies on a global target to be reached, at which time, orders are closed and then resets for next day. If global target is not reached by the end of the trading day, all orders are closed and attempted again the next day. Daily Target varies between 1.5%-2% per day.
Updates to this version include
Addition of Bollinger Band indicator to help filter entries during times when price action is moving from a range into a trend.
Addition of Global Trailing Stop that triggers half way to global target.
Addition of Global Break-Even value prior to New York session opening and monitoring for during New York Session to lock in break even if Global Target has not been reached during ASIA and LONDON sessions.
Live Account shown in Trade Explorer "ForexScotty Dashboard" on "PlexyTrade Micro Account.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722540783
I'm going to leave the Blackbull Markets up as a baseline on previous version to compare results.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722542045
I also have a couple more demo accounts that I have another new feature that I am testing that shows promise. Instead of a single order on each pair with when the conditions are right, it will open 3 orders on the pair. All 3 orders have a Dynamic Stop Loss and each order has its own TP in a multi-tiered algorithm.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722542335
So far, the results are promising. But with 3 orders instead of one, I am testing to get an idea of Drawdown and capital needed to operate safely.
The metrics I am currently using are these.
These are for initial session only as when in recovery would be more dynamic can can very as the the degree of the bad day.
Good day target 1-2%
Account load 5% or less
First Bad Day Draw Down optimal 5% or less
Second Bad day Draw Down 10%
Third Day Drawdown 25%
I'm testing a max drawdown emergency stop of 50%.
Anyone who knows me knows I am a gambler, not a trader. I built this to be similar to playing all seats at the blackjack table with a martingale strategy, but being more dynamic as to trade entries and not as arbitrary as a pure martingale.
I guess the difference between my algorithm and others is that using the blackjack analogy , my revenue is driven from the table (account) not the individual seats (Trades) each trading day. With the goal of producing daily, budget-able results.
Added and updated thread April 14th, 2024
EA uses multiple trades, trending pairs offsetting ranging pairs resulting in a daily account target. When reached, EA shuts down and awaits next day. If not reached, recovery algorithm calculates amount needed to reach target and adjusts lotsize accordingly. As opposed to arbitrary martingale which simply doubles lot size until success or failure.
The failing of most recovery strategies including martingale style is that initial lotsize is calculated on the entire account balance. Latest version now includes a reserve balance that is not included in calculating initial lotsize, therefore allowing more room to recover and keeping reasonable drawdown.
The largest challenge in trading multiple pairs in an algorithm is the inability to back test. Forward live/demo testing is the only option. So, it takes time to view patterns of behavior, make changes, and view the effect. The most stable account set file will be the winner and be used in the managed account this summer.
I'm thinking if it pans out, I really don't want to be in the business of selling EA's. But may consider it as Metatrader is being limited and may become non-existent for US traders. Not sure what options might be available to market something like this. It requires high leverage if high returns are to be expected. Low leverage is fine as well, but the return and equity curve would be lower. As an example...
Leverage 500-1 $1000 Balance Required 1%-2% Average returns per trading day.
Riskier adjustments can be made to the EA.
Leverage 50-1 $10,000 Balance Required .1% Average returns per trading day.
Attempting to only use 5% of account balance (load) maximum to allow for recovery algorithm after losing sessions.
We will see what happens and what opportunities arise...if any.
Currently thinking of new ideas on how to share this EA. I've worked too hard and spent too much money on coding to give it away. I would like to see some return on my work.
There will be a Managed Account available this summer if all pans out.
I'm running my test accounts below. All accounts on my profile use the same EA with varied money management settings.
https://www.forexfactory.com/forexscotty
All account stats can be viewed on my profile as only 2 are allowed per thread.
UPDATE 5/14/2024
After Traders Way cut their US customers off with regard to the MT4 platform. I had to look for a new broker. Here is what I found...
www.plexytrade.com
Yes, it is new to me too. Just signed up in the last week. They recently acquired LQDFX. That is how I found out about them.
This does not affect the plans of a managed account offering this summer. But hopefully will open the door for US clients.
Yes, this is a referral link. You don't have to use it. Please do your own research on their validity. I will take the risk with a new unregulated broker as well. The only thing I will say, I was with Trader's Way for 15 years until they dropped US customers. And they too, were unregulated. But I received all withdrawals and refunds. Will they be the same? Only time will tell. All results will be posted for all to see.
Demo accounts and live accounts have been opened...pretty seamlessly.
Customer service was very responsive.
Do your own research.
I'll be the guinea pig and see how it works out.
MT4, MT5, High Leverage and accepts US customers. For a recovery algorithm or Martingale, High leverage can be a game changer or worst enemy.
The truth will tell when I go to make withdrawals. I have requested that they be added to the FF Trade Explorer broker list.
JUST NOW: UPDATE 5/15/2024 I'm happy to report that my request to have PlexyTrade added to the Trade Explorer broker list was approved by FF. I'll be the lab rat and post my live account results running my dashboard here on the dashboard forum as well as on my profile.
UPDATE 8/1/2024: Version 2.44 has passed functional testing and now is time to put it to the real test. LIVE ACCOUNT.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722540783
As with the previous versions, it continues to use a combination of Indicators to verify price direction prior to opening a trade. It monitors 10 charts. Orders may be placed on 1 pair or all of them if the conditions are present. Each order has a safety stop loss, but relies on a global target to be reached, at which time, orders are closed and then resets for next day. If global target is not reached by the end of the trading day, all orders are closed and attempted again the next day. Daily Target varies between 1.5%-2% per day.
Updates to this version include
Addition of Bollinger Band indicator to help filter entries during times when price action is moving from a range into a trend.
Addition of Global Trailing Stop that triggers half way to global target.
Addition of Global Break-Even value prior to New York session opening and monitoring for during New York Session to lock in break even if Global Target has not been reached during ASIA and LONDON sessions.
Live Account shown in Trade Explorer "ForexScotty Dashboard" on "PlexyTrade Micro Account.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722540783
I'm going to leave the Blackbull Markets up as a baseline on previous version to compare results.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722542045
I also have a couple more demo accounts that I have another new feature that I am testing that shows promise. Instead of a single order on each pair with when the conditions are right, it will open 3 orders on the pair. All 3 orders have a Dynamic Stop Loss and each order has its own TP in a multi-tiered algorithm.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...l?d=1722542335
So far, the results are promising. But with 3 orders instead of one, I am testing to get an idea of Drawdown and capital needed to operate safely.
