Hi Guys,
I am going to start trading a new system. I constructed this system by backtesting a number of indicators on the entire eur/usd data. I found one indicator setup that i like, it has a limited drawdown and seems consistent. This uses only two indicators, basically one indicator on another indicator. I don't want to say what the indicators are because the process of finding indicators that work is a learning one. If you just copy my trades you won't know what to do when it goes wrong.
You can get all the indicators as Excel functions from AnalyzerXL. That's what i did.
Here is a chart showing my system's performance. The y axis is pips (1.0 = 10000 pips) and each point represents one trade. If we put a trendline through this we see that it makes a profit of 3.4 pips per trade which is more than the 2 pips commission that my broker takes. However, the system doesn't ask me to open and close a trade every day so i pay far less than 2 pips a day in commission.
My analysis shows that if i trade this system without MM then my account will grown by 29% on average each year (non-compounded and ignoring comms). Basically it makes around 700 gbp over 12 years with a max drawdown of 180 gbp. Trading this flat would then require you to trade 1 micro-lot for every 200 gbp in your account.
If we add some MM then our chart looks like this.
Our Y axis is now gbp and each point is a trade. This MM scheme generates close to 5000 gbp over the 12 years with a max drawdown of 890gbp. If you trade this you would want to trade 1 miro-lot for every 1000gbp in your account and this would make your account grow by 38% on average (non-compounded) each year (ignoring comms).
I am starting with a little under 2000gbp in my acount. I will trial this system for a few months and if it behaves as predicted then i will put some real money behind it.
Feel free to ask any questions.
Today is June 1st and I have 1942.97gbp. I am currently short eur/usd - just like the rest of the world, probably.
I am going to start trading a new system. I constructed this system by backtesting a number of indicators on the entire eur/usd data. I found one indicator setup that i like, it has a limited drawdown and seems consistent. This uses only two indicators, basically one indicator on another indicator. I don't want to say what the indicators are because the process of finding indicators that work is a learning one. If you just copy my trades you won't know what to do when it goes wrong.
You can get all the indicators as Excel functions from AnalyzerXL. That's what i did.
Here is a chart showing my system's performance. The y axis is pips (1.0 = 10000 pips) and each point represents one trade. If we put a trendline through this we see that it makes a profit of 3.4 pips per trade which is more than the 2 pips commission that my broker takes. However, the system doesn't ask me to open and close a trade every day so i pay far less than 2 pips a day in commission.
My analysis shows that if i trade this system without MM then my account will grown by 29% on average each year (non-compounded and ignoring comms). Basically it makes around 700 gbp over 12 years with a max drawdown of 180 gbp. Trading this flat would then require you to trade 1 micro-lot for every 200 gbp in your account.
If we add some MM then our chart looks like this.
Our Y axis is now gbp and each point is a trade. This MM scheme generates close to 5000 gbp over the 12 years with a max drawdown of 890gbp. If you trade this you would want to trade 1 miro-lot for every 1000gbp in your account and this would make your account grow by 38% on average (non-compounded) each year (ignoring comms).
I am starting with a little under 2000gbp in my acount. I will trial this system for a few months and if it behaves as predicted then i will put some real money behind it.
Feel free to ask any questions.
Today is June 1st and I have 1942.97gbp. I am currently short eur/usd - just like the rest of the world, probably.
