DislikedHere is a first.
A gbp basket just closed at just over +100 pips, yet it cost me over 5% of the account balance.
The maths adds up - there were more than +100 pips in the profit column. Thing is, the losing pips in terms of cost added up to a lot more than the winning pips. The result was a loss of $33 including swap (not very much).
This has never happened before but it throws a new variable into the mix; baskets can hit their pips tp yet still make a financial loss.
Nothing to panic about now, given the success of the robot, but something...Ignored
Kang Gun Relative Strength trading - the EA's
If you have UseKgGroupFilter enabled and disable BasketReverseNotCancel you will find most of your baskets getting cancelled.
Please keep us in touch with how you do having turned off BasketReverseNotCancel.
Pavel
- #923
- Oct 29, 2009 6:55pm Oct 29, 2009 6:55pm
- | Commercial User | Joined Apr 2007 | 8,331 Posts
One opened and closed with 100 pips profit through one hour.
My demo account (ibfx) got a margin call yesterday with normal MM (0.01 per 100). From now on i will use a little more conservative money managment. It was runing from the end of may and it reached 3.4 starting balance(from 1000 to 3400). At the time of the margin call i had just 3 baskets open. My other demo on alpari is runnig fine (60% in DD).
We will have to be a little more conservative to survive longer and harvest some profits
Boki
We will have to be a little more conservative to survive longer and harvest some profits
Boki
My demo account (ibfx) got a margin call yesterday with normal MM (0.01 per 100). From now on i will use a little more conservative money managment. It was runing from the end of may and it reached 3.4 starting balance(from 1000 to 3400). At the time of the margin call i had just 3 baskets open. My other demo on alpari is runnig fine (60% in DD).
We will have to be a little more conservative to survive longer and harvest some profits
Boki
Vinesh
- #928
- Oct 30, 2009 6:56pm Oct 30, 2009 6:56pm
- | Commercial User | Joined Apr 2007 | 8,331 Posts
First of all, i have allot of experience trading the forex market as i do this on a daily basis for a large commercial trading floor in London.
I have read the original thread and this one regarding KG basket trading method. While i wont agree or disagree with this methodology, there is one thing which stands out...
These methods are used to some extent with the commercial world but you DO NOT buy equal lots of each currency within the group or basket. This is ONE of the reasons why DD occurs to a higher amount and more often that it needs too....
I had sort-of gathered this from the basket that closed earlier this week at +100 pips yet -5% of the account balance. Earlier tonight before the markets closed, I had negative pips on a GBP basket yet a positive cash balance on the basket. It might have been weeks, even months before I actually did anything about it without your post.
I shall work on this over the next week, and come back to you for confirmation of my thoughts.
I just did an experiment, writing a script that presented the bid price for GJ and AJ and doing the division; yep, in round figures 1.82 (1.8276, so maybe 1.83 to round up correctly).
scooby-doo, you have seen how hard I work at this robot so I am going to really push my luck here. You couldn't save me hours of digging around and post the strongest pair within each of the trigger groups could you?
Please?
Pretty please?
With lovely blue ribbons and bright yellow wellies?
Cheers scooby-doo. You have opened up a bright new world of possibilities here.
- #931
- Oct 31, 2009 4:15am Oct 31, 2009 4:15am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
Hi Steve,
I will do this for you tomorrow as it is fast approaching my bed time.
It will work allot better and your basket/group will close much quicker in profit as opposed to hours, days or god forbid weeks.
The only problem this does pose (because of decimals) is if you start your base currency with less than 0.10 but i am sure we can deal with that issue next.
I have already worked out how to code differential lot sizes into the robot, so this can happen quite quickly.
That a 'base' lot size of less than 0.1 will cause problems occurred to me whilst thinking about this. I think the solution will be to have a minimum lot size of 0.1; where the size of the account does not justify this, users will have to scale back on the number of baskets they allow to be opened.
- #932
- Edited 5:23am Oct 31, 2009 5:12am | Edited 5:23am
- Joined Jul 2009 | Status: Trader | 2,158 Posts
Cheers scooby-do. You are a star.
I have already worked out how to code differential lot sizes into the robot, so this can happen quite quickly.
That a 'base' lot size of less than 0.1 will cause problems occurred to me whilst thinking about this. I think the solution will be to have a minimum lot size of 0.1; where the size of the account does not justify this, users will have to scale back on the number of baskets they allow to be opened.
One thing people should realise with the XXXJPY pairs...
"One well known trading method with JPY currencies is that the BOJ intervene on a daily basis with them. So, if they are oversold prior to Tokyo open, then SELL them all. Likewise if they are overbought prior to Tokyo close, then BUY them all."
The above is most likely the reason why people end up with these trades going against them.
Anyhow, i will be back later with the information you require.
Cheers.
- #933
- Oct 31, 2009 5:34am Oct 31, 2009 5:34am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
I will do this later today as i have to take delivery of a new car.
One thing people should realise with the XXXJPY pairs...
"One well known trading method with JPY currencies is that the BOJ intervene on a daily basis with them. So, if they are oversold prior to Tokyo open, then SELL them all. Likewise if they are overbought prior to Tokyo close, then BUY them all."
The above is most likely the reason why people end up with these trades going against them.
Anyhow, i will be back later with the information you require....
I did not know about BOJ. This explains why xxxjpy pairs can open and close for fun one day, then sit around going nowhere for weeks. It might make the pair unsuitable for this kind of trading without a time filter. We shall see.
- #934
- Oct 31, 2009 5:44am Oct 31, 2009 5:44am
- Joined Jul 2009 | Status: Trader | 2,158 Posts
Cheers scooby-doo. Enjoy the new car.
I did not know about BOJ. This explains why xxxjpy pairs can open and close for fun one day, then sit around going nowhere for weeks. It might make the pair unsuitable for this kind of trading without a time filter. We shall see.
The BOJ have been doing this since 1982 even when it is a public holiday over there!
Back soon.
- #936
- Oct 31, 2009 6:51am Oct 31, 2009 6:51am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
There you go Steve, you have the knowledge to build a seperate EA for just the XXXJPY pairs which will be virtually risk free with very high ROI.
- #937
- Oct 31, 2009 6:52am Oct 31, 2009 6:52am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
Steve,
JPY Basket = GBPJPY
USD Basket = EURUSD
EUR Basket = EURJPY
AUD Basket = AUDNZD
CHF Basket = GBPCHF
CAD Basket = EURCAD
NZD Basket = AUDNZD
GBP Basket = GBPJPY
Let me know if you have any further questions.
- #938
- Oct 31, 2009 7:25am Oct 31, 2009 7:25am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
Just thought. I can post a screen shot to save you downloading the script.
- #940
- Oct 31, 2009 8:15am Oct 31, 2009 8:15am
- | Commercial User | Joined Apr 2007 | 8,331 Posts
Steve,
This is wrong. Example JPY, Base lot = 1.0.
GBPJPY = Base Lot
EURJPY = GBPJPY * (GBPJPY BID / EURJPY BID)
USDJPY = GBPJPY * (GBPJPY BID / USDJPY BID)
CHFJPU = GBPJPY * (GBPJPY BID / CHFJPY BID)
CADJPY = GBPJPY * (GBPJPY BID / CADJPY BID)
AUDJPY = GBPJPY * (GBPJPY BID / AUDJPY BID)
NZDJPY = GBPJPY * (GBPJPY BID / NZDJPY BID)