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Trim6

  • #1
  • First Post: Edited Sep 20, 2013 1:06pm Sep 4, 2013 2:40pm | Edited Sep 20, 2013 1:06pm
First, please read my FAQ: http://www.forexfactory.com/showthread.php?t=252690

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This system is the same as Reverse6 except that we only close biggest losers; we do not reverse them, meaning that we do not open new trades in the opposite direction.
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File Type: mq4 Trim6_01.mq4   35 KB | 381 downloads
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File Type: mq4 Trim6_01a.mq4   35 KB | 303 downloads | Uploaded Sep 7, 2013 11:02am
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to any chart, any timeframe. Do not attach to more than one chart.

Read this post http://www.forexfactory.com/showthre...70#post6947370 to see the added trim condition for version 01a.

These are the pairs we trade:

Group 1, The Buys
1. GBPUSD
2. USDCHF
3. EURJPY

Group 2, The Sells
4. GBPCHF
5. CHFJPY
6. EURCHF

These 6 pairs constitute a synthetic hedge.

Lot sizes are not all the same for every currency pair. They are calculated to provide a well-behaved hedge. The hedge isn't perfect because poor lot size granularity doesn't allow for perfect hedging, just well-behaved hedging.

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Summary:

Initially open real trades and phantom trades unconditionally; close the biggest losing trade when phantoms become all winners or all losers within their designated groups.

Close all when current equity exceeds 1% of last flat equity.

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More detail:

Initially, buy the designated buy group of pairs and sell the designated sell group of pairs. Also, open phantom trades in the same direction as the real trades. Track the virtual profit-loss of the phantom trades.

Close the biggest losing trade when the phantom trades group together such that all phantom buys are all winners or all losers, and the same for the phantom sells. Reset the phantom trades immediately after closing the biggest loser.
Open to new approaches.
  • #2
  • Sep 5, 2013 9:39am Sep 5, 2013 9:39am
Hello MetaCoder.

Just stumbled on this, and I then checked your other threads and see that you have a few of these basket trading EAs going. So apart from the new ones - Reverse6 and Trim6, which of the oldies - Phantom6, Basket14 and Confirm14 are still performing/you still use? Many thanks
  • #3
  • Sep 5, 2013 10:16am Sep 5, 2013 10:16am
Quoting the-game
In the original EA, it also waits until the absolute value of the biggest loser dollar loss is more than the ProfitPct.
I spotted this today and I realized I don't want that feature in Trim6.

I took it out. New version uploaded to the first post of this thread.
Open to new approaches.
  • #4
  • Sep 5, 2013 10:18am Sep 5, 2013 10:18am
Quoting danjuma
Hello MetaCoder. Just stumbled on this, and I then checked your other threads and see that you have a few of these basket trading EAs going. So apart from the new ones - Reverse6 and Trim6, which of the oldies - Phantom6, Basket14 and Confirm14 are still performing/you still use? Many thanks
One problems with those older EAs is that they used the same lot size for every pair. I discuss this in some of my posts over the past week. That alone is a big problem. While those older EAs could do great at times, the frequency of trimming could be another big problem when the market was indecisive.

Proper lot sizing and watching for a more significant event to drive trimming/reversing is what we have in the new strategies/EAs.
Open to new approaches.
  • #5
  • Sep 5, 2013 10:39am Sep 5, 2013 10:39am
Quoting MetaCoder
{quote} One problems with those older EAs is that they used the same lot size for every pair. I discuss this in some of my posts over the past week. That alone is a big problem. While those older EAs could do great at times, the frequency of trimming could be another big problem when the market was indecisive. Proper lot sizing and watching for a more significant event to drive trimming/reversing is what we have in the new strategies/EAs.
Much obliged! Will stick to the new ones than. Thanks
  • #6
  • Sep 5, 2013 10:41am Sep 5, 2013 10:41am
You're welcome, should be a pretty interesting ride.
Open to new approaches.
  • #7
  • Sep 5, 2013 10:56am Sep 5, 2013 10:56am
long time no see, thought you leave phantom behind.

i traded LIVE phantom from 2011 ~ 2012, and still demo it now.

although i'm still demoing it, i don't think this is a solid system, not only because of my trading experiences, but also from my extensive backtests in forextester. i replicate your code completely to forextester and run all kinds of combination/settings from 2007~now (imagine how much i could've tried in these 3 years, , you still can see my TE clicking my name).

please don't feel it harsh as i post with good will.

the problems i see with phantom 6 as well as your new versions:

1. the entry is fine, but exit is problematic. the trouble times are always that when the market reverses, reverses again, again, and again, or in other words, the price takes a widening range.

2. hedge pairs config doesn't mean much. this is actually an EA profits on trend(or momentum). the exit comes more from one or two pairs' one way movement. what help does the hedge offer here, if not all pairs are entered? your risk/exposure after taking the leading pair is purely directional, isn't it?

during 3 yrs trading, i tried cut losers by floating profit/loss, by time interval; cut a pair, reverse entry, too many to remember, but all variation cannot solve the problem 1 above: when price is taking a widening range (and it happen very often).

in my phantom trading days, i've asked many times the same question: what if after each entry, the market reverses??? i have not found the answer to it. so i failed.

good luck, and i'm actually glad to see you try again and hopefully we can see promising alternatives this time.



Quoting MetaCoder
{quote} One problems with those older EAs is that they used the same lot size for every pair. I discuss this in some of my posts over the past week. That alone is a big problem. While those older EAs could do great at times, the frequency of trimming could be another big problem when the market was indecisive. Proper lot sizing and watching for a more significant event to drive trimming/reversing is what we have in the new strategies/EAs.
  • #8
  • Sep 5, 2013 11:04am Sep 5, 2013 11:04am
another thing that i'd like to remind (i correct this issue in my own code at a very early stage):

there are 6 pairs, the phantom should always catch the leading runner, instead of the leading winner.

in math:

if mathABS(biggest loser) > mathABS(biggest winner)
then EA should add an opposite entry on loser pair

you new idea might be different, i just thought in case.......
  • #9
  • Sep 5, 2013 11:26am Sep 5, 2013 11:26am
charvo, I agree that reversal after reversal is a big problem, when it happens. It is especially bad when trimming/reversing is going on at a high frequency rate. I don't claim that my new approach is a perfect solution or even a very good solution -- I'll have to watch and decide like everyone else -- but it will be different.

Consider how maybe the problems you've seen are partly due to incorrect lot sizing. For example, if a pair containing JPY is sized too big, a big weakening or strengthening in JPY could drive the loss down to far, such that the basket has little hope of recovery.
Open to new approaches.
  • #10
  • Sep 5, 2013 11:30am Sep 5, 2013 11:30am
Quoting charvo
another thing that i'd like to remind (i correct this issue in my own code at a very early stage):

there are 6 pairs, the phantom should always catch the leading runner, instead of the leading winner.

in math:

if mathABS(biggest loser) > mathABS(biggest winner) then EA should add an opposite entry on loser pair

you new idea might be different, i just thought in case.......
These new EAs will always trim or reverse the biggest loser and not add to winners, regardless of what the biggest runner is.

One could trim the biggest loser and then use freed-up margin to add to the biggest runner, whether it is the loser we just closed or the biggest winner; however, then we start to lose the hedging properties. For now, I prefer to keep all 6 unique pairs in play.
Open to new approaches.
  • #11
  • Sep 6, 2013 3:33am Sep 6, 2013 3:33am
Hi MetaCoder,

I am planning to start demo trading the reverse6 ans trim6. To make it as realistic as possible when I plan to go live, what is the minimum balance, lot size and leverage required? Many thanks
  • #12
  • Sep 6, 2013 11:45am Sep 6, 2013 11:45am
I don't like excessive trimming.

Trim_01a has the condition MathAbs(BiggestLoserPL) >= 0.5 * BiggestWinnerPL to filter out the reversals that occur shortly after a phantom reset in the midst of strong action that quickly groups the two sets of phantoms pairs on opposite sides.
Open to new approaches.
  • #13
  • Sep 6, 2013 11:47am Sep 6, 2013 11:47am
Quoting danjuma
Hi MetaCoder, I am planning to start demo trading the reverse6 ans trim6. To make it as realistic as possible when I plan to go live, what is the minimum balance, lot size and leverage required? Many thanks
I suggest you not go live until you have demo-traded the EAs for a good long time. You will want to understand as much as you possibly can before taking these live. When the EA takes an action you don't understand, it means you don't know the behavior of the EA well enough. When everything the EA does makes sense to you, you can then feel comfortable.

Just my advice.
Open to new approaches.
  • #14
  • Sep 6, 2013 12:22pm Sep 6, 2013 12:22pm
Quoting MetaCoder
{quote} I suggest you not go live until you have demo-traded the EAs for a good long time. You will want to understand as much as you possibly can before taking these live. When the EA takes an action you don't understand, it means you don't know the behavior of the EA well enough. When everything the EA does makes sense to you, you can then feel comfortable. Just my advice.
Hi MetaCoder,

Of course I was definitely not planning to go live yet. I don't operate that way. Reason I asked for the above info is that I want to set my demo account to mimic my eventual live account as much as possible so I have a rough idea what the returns would be like when I go live. Thanks
  • #15
  • Sep 6, 2013 12:48pm Sep 6, 2013 12:48pm
danjuma, I would set up my demo to have the same amount and account type as I plan for a live account. All EA settings the same, etc.
Open to new approaches.
  • #16
  • Sep 6, 2013 1:02pm Sep 6, 2013 1:02pm
Quoting MetaCoder
danjuma, I would set up my demo to have the same amount and account type as I plan for a live account. All EA settings the same, etc.
Ok, so will the following work: leverage 1:50, balance $1000, lots 0.01 (micro)? Thanks
  • #17
  • Last Post: Sep 6, 2013 1:14pm Sep 6, 2013 1:14pm
Worth a try.
Open to new approaches.
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