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My EA Gift to Traders

  • #1,301
  • Edited May 15, 2015 12:56am May 14, 2015 4:25pm | Edited May 15, 2015 12:56am
Each Day for the next month or so, I am going to cover one aspect of the inputs for Traders Gift EA and Strategy Optimizer and then I am going to cover Optimizations in depth, Money Management and finally a Battle Plan. At the end of the inputs, I will consolidate all the discussions into one PDF document and make it available at Post #1. Some discussions will provoke comment and I will incorporate all significant points in the final PDF. One point for sure I know will provoke comment is the Stop Loss Multiplier. That's about 1 week away. Continuous Straddle will be another interesting topic.

Lot Size
Risk Basis
Trade Closure Mode
Risk Percentage
Stop Loss
Stop Loss ATR Periods
Stop Loss Multiple
Use Trailing Stop Loss
Take Profit
Take Profit ATR Periods
Take Profit Multiple
Set Stop Loss to Break Even Pips
Min Pip Gain for Reset
Decrease Stop Loss Percentage
Other Inputs (1 one subject)
EMA Cross
Price EMA Cross/Position
RSI
MACD
STOC
Bollinger Bands
PSAR
Time and Day
Straddle
Continuous Straddle
CCI
ADX
ATR
Zig Zag
News
Pivots
Fibonacci
Support and Resistance
Divergence
Candlesticks
Volume
Setting up Optimizations
How to use Strategy Optimizer
Using a VPS
What to Optimize
How to Combine Strategies and Filters
How to Handle Money Management
Finally - A Battle Plan

Todays discussion -


Lot Size
Money management can be quite complicated if you take all the options presented and the option to nominate a fixed lot size gives you absolute simplicity in determining the relative values of strategies and filters in your back testing and trading. If you have been used to trading in small amounts such as .01 of a lot then fixing your lot size is the option you have with this input. This means that your Lot Size will remain fixed for every trade and Stop Loss Multiplier will have no effect.

Most MT4 brokers give you the option to trade in any of the major currencies so this means that the value of your profit is directly related to the size of your wager.
The rule of thumb is that a wager of 1 lot gives $10 (or 10 units of your own currency) per pip gained (a pip is .0001 except JPY .01, Gold .1, Silver .01). So a wager of .01 gives $1 per 10 pips.

If left at 0, your lot size will be determined by the size of your equity. I would recommend that you do leave this at 0 and use your equity as the determining factor because you are then taking the first step in a money management plan.
  • #1,302
  • May 15, 2015 12:00am May 15, 2015 12:00am
Traders Gift EA updated at Post #1. Fix for trailing Stop Loss not updating on some pairs.
  • #1,303
  • Edited 4:15pm May 15, 2015 3:11am | Edited 4:15pm
I am still concerned by the comments of a new poster a couple of days ago where he basically made demands and questioned my methodology and I wanted to highlight the importance of homework and really understanding what works and what doesn't.

Here is a screen shot from myfxbook which I know is selective but I enclose the full link to this strategy. This is what can be achieved with a little work rather than shooting from the hip. 47 trades 47 winners!

http://www.myfxbook.com/members/DaveC/cci/1247728

Click on the summary tab of Advanced Statistics
Attached Image (click to enlarge)
Click to Enlarge Name: 2015-05-15 18_02_17-CCI _ Myfxbook - Internet Explorer.png Size: 60 KB
  • #1,304
  • Edited 5:09am May 15, 2015 4:51am | Edited 5:09am
Quote
I wanted to highlight the importance of homework and really understanding what works and what doesn't.

I think the main problem is people want to be spoon fed by you, and they see the performance of your EA's and just want that. I see it as you've handed me the spoon I'll feed myself. I'll admit that I don't fully understand all the settings, but I understand the logic of it. If that makes any sense. I'm actually looking at the VPS stuff from post #1 because at the start of next month I'd actually like to test a bunch of my own strategies, and I'm all ready running 3 on my own PC for testing. 2 of which are in my profile the 3rd I'll add later since it's intended to be less trades but higher success.

I also just want to add my 2 cents on how I would/will use this live when the time comes. First off I would have to have some successful demo's going for a few months, so I have some confidence. Then I'd start with a small amount probably $500-$1000, and the first thing I'd do is pay myself back. Then after that point I don't really have any skin in the game except for time. At that point I'd want to start setting up seeds with some of the profits.

Like for example let's take the CCI+Vol 7 Majors starting at $500 in my profile. Once that reaches $1000 I'd take $500, then I would be back at $500. I'd let that go to $1500, then I would take $500 again. I would take that $500 then open another account using CCI+Vol on the 7 Crosses, and repeat that pretty much based on however many proven successful strategies I have. Once I have all the seeds planted I'd start taking step up profits ex. It's at $1500 take $500, now it's $1000 so let it go to $2000 then take $500, now it's $1500 etc.

Sorry if I've gone a bit off topic.
  • #1,305
  • May 15, 2015 5:14am May 15, 2015 5:14am
Shawn.
That is on topic. Your personal thoughts without resolving to technical issues encourages other readers who choose not to post. I hope others are encouraged by your candour.
  • #1,306
  • Edited May 16, 2015 3:36am May 15, 2015 8:31pm | Edited May 16, 2015 3:36am
Today's Discussion:

Risk Basis

There are 2 possible settings -

0 - the value of your wager will be based on your Equity
1 - the value of your wager will be based on your Stop Loss

Two schools of thought here. If you want to limit your loss to exactly the amount you are prepared to risk, you should select the second option but there is a trap with that. With a very small stop loss this can lead to high wagers and in a fast moving market, your Stop Loss may not be filled at your nominated price and the losses could easily exceed the amount anticipated. With a Stop Loss of 10 the wager will be 10 times the size of a wager with Option 0 selected.

By choosing the first option 0, the value of your wager is fixed regardless of your stop loss value and this is a better technique overall in money management. However any stop loss over 100 pips will result in a loss greater than percentage of your equity that you are risking. The reverse applies with stop losses less than 100 pips and is also reduced by any trailing stop loss.

The default Value is 0 and this is the preferred option.

If your lot size is fixed, this setting is ignored.
  • #1,307
  • May 16, 2015 8:32pm May 16, 2015 8:32pm
Todays Discussion:

Trade Closure Mode

There are 3 possible settings

0 - Use Stop Loss
1 - Use Signal Reversal
2 - Use Traders Dynamic Index

The default and recommended option is Use Stop Loss. The Stop Loss can optionally trail your profits and protect any profits once the trade enters positive territory by setting the Stop Loss to Break Even and is a sound money management tool. Using Signal Reversal is an option where an indicator can display distinct reversal signals. The trap in using Trade Reversal is that the signal may not be sustained or you may get whipsawed (that is - fluctuates up and down) around the reversal level.

On back testing and optimization, it has been proven that a Trailing Stop Loss rather than a signal reversal is a better performing consideration. Notwithstanding that, indicators such as RSI do give sound signal reversal indications and it makes for easy monitoring of trades. One advantage of signal reversal is that you will always be in a trade as the signal reversal simply closes one direction of trade and opens immediately another trade in the opposite direction.

Traders Dynamic Index is an indicator using a combination of RSI and Moving Averages which gives an indication of trend and momentum of the market.
Traders Gift uses a 7 period SMA on a 13 period RSI and give a buy indication above 50 and a sell indication below 50. The same problem applies as with Trade Reversal, that is it can be subject to whipsawing.
  • #1,308
  • May 16, 2015 10:52pm May 16, 2015 10:52pm
Hi Dave, Can I still get the free EA?
  • #1,309
  • May 16, 2015 11:21pm May 16, 2015 11:21pm
Dave, if I import tick data before 2015 it says insufficient data - check range. Can this be fixed.
  • #1,310
  • May 17, 2015 12:20am May 17, 2015 12:20am
Quoting GoldenEA
Hi Dave, Can I still get the free EA?
Spoon feeding time:

1. Go to post # 1 - surprise

2 . Click on the link - surprise

And if you can't manage 1 + 2 by yourself, then no, you can't have the EA

unless Dave goes to your house and use the mouse for you

It takes a lot for me to IGNORE you, but you can try.
  • #1,311
  • May 17, 2015 4:55pm May 17, 2015 4:55pm
Quoting Smithypips
Dave, if I import tick data before 2015 it says insufficient data - check range. Can this be fixed.
You need to change the start and end dates of your input. They default to dates in this year.
  • #1,312
  • May 17, 2015 5:25pm May 17, 2015 5:25pm
Todays Discussion:

Risk Percentage
The default value is set at 2%.

It is generally accepted that 2% of Equity represents sound money management practice. With the Lot Size left at 0, you need to have a percentage number in this input. Decimal values are acceptable.

The lot size is calculated on the following basis. 2% of equity of say $1000 = $20 (or 20 units of your nominated currency). This amount will buy .02 of a lot (1 lot costs $1000). Unless your broker deals in micro lots (.001), .01 of a lot is generally the minimum lot size. In other words $500 would be the recommended minimum bank required at 2% risk.

Bear in mind that the gearing level you have established with your broker will determine the margin requirement and if you are using a margin at 100:1 the margin requirement will be the value of your wager. At 200:1 your margin requirement will be half the value of your wager. The down side of higher leverage is that your equity is depleted faster if the price goes against you. At 200:1 your investment is fully lost after a movement of 50 pips (less with commission and brokerage).

As mentioned in the previous post, if you are determining the value of your wager on Stop Loss, you can start with higher wagers with Stop Losses less than 100 pips. (A pip is 0.0001 except JPY crosses 0.01, Gold 0.1 and Silver 0.01).
  • #1,313
  • May 17, 2015 6:14pm May 17, 2015 6:14pm
Quoting Dave_C
{quote} You need to change the start and end dates of your input. They default to dates in this year.
Because Dave wrote the program, he think everyone should be able to use it; that's why he doesn't even bother to write a manual with even the very basic items like this

I mean, how hard could it be to point out what each function does?

Or a step-by-step of your first basic optimization starting with the above "set the date range"?

Now it's no wonder to me why this thread is like it is, question after question....

It takes a lot for me to IGNORE you, but you can try.
  • #1,314
  • May 17, 2015 6:28pm May 17, 2015 6:28pm
Quoting Erebus
{quote} Because Dave wrote the program, he think everyone should be able to use it; that's why he doesn't even bother to write a manual with even the very basic items like this I mean, how hard could it be to point out what each function does? Or a step-by-step of your first basic optimization starting with the above "set the date range"? Now it's no wonder to me why this thread is like it is, question after question....
I see your point if it was a paid product....as far as I know the only thing we need to pay for is automated optimisations and updated data packs etc. Not sure exactly.
  • #1,315
  • May 17, 2015 7:23pm May 17, 2015 7:23pm
Quoting Dave_C
Todays Discussion: Risk Percentage The default value is set at 2%. It is generally accepted that 2% of Equity represents sound money management practice. With the Lot Size left at 0, you need to have a percentage number in this input. Decimal values are acceptable. The lot size is calculated on the following basis. 2% of equity of say $1000 = $20 (or 20 units of your nominated currency). This amount will buy .02 of a lot (1 lot costs $1000). Unless your broker deals in micro lots (.001), .01 of a lot is generally the minimum lot size. In other words...
Hi Dave,

Thank you very much for educating us. With StopLossATRMultiplier function, the lot size could be raised up to 20% of equity until a wining trade is placed (if I got it correctly). In that case, how could it adhere with the margin requirement?
  • #1,316
  • May 17, 2015 8:27pm May 17, 2015 8:27pm
Quoting demalichcha
{quote} Hi Dave, Thank you very much for educating us. With StopLossATRMultiplier function, the lot size could be raised up to 20% of equity until a wining trade is placed (if I got it correctly). In that case, how could it adhere with the margin requirement?
At 100:1 gearing, the Margin Requirement would be 20% of your Equity.

It would depend on how many other EA's were trading on the same account and what % of Equity, each other trade required.
  • #1,317
  • May 17, 2015 10:34pm May 17, 2015 10:34pm
Quoting fxtrader08
{quote} I see your point if it was a paid product....as far as I know the only thing we need to pay for is automated optimisations and updated data packs etc. Not sure exactly.
Glad someone agrees with me
Attached Image (click to enlarge)
Click to Enlarge Name: 18-05-2015 1-31-55 PM.png Size: 490 KB
It takes a lot for me to IGNORE you, but you can try.
  • #1,318
  • Edited May 18, 2015 12:56pm May 17, 2015 11:42pm | Edited May 18, 2015 12:56pm
Quoting Erebus
{quote} Glad someone agrees with me {image}
Let's clear this up for everybody.

Traders Gift EA including source code is FREE and always will be.
Strategy Optimizer Standard version is FREE and always will be for Forex Factory subscribers.
Forex 1 Minute Data updated monthly is FREE and always will be.

The only item which is Commercial is the Automatic version of Strategy Optimizer which has a charge of $49 for Forex Factory Subscribers and includes data updated weekly.

To take part of a webpage and try and use it out of context - I'm sure you have seen enough childish posts to form your own opinion. Silly little characters, heaps of red ink and overemphasis on illustrations tell the story. The poster won't be banned as he is doing a quite a good job of falling on his own sword. I thought he might have got the hint from fxtrader08.
  • #1,319
  • Edited 7:07am May 18, 2015 5:46am | Edited 7:07am
Quote
Because Dave wrote the program, he think everyone should be able to use it; that's why he doesn't even bother to write a manual with even the very basic items like this
I mean, how hard could it be to point out what each function does?

Quote
Now it's no wonder to me why this thread is like it is, question after question....

I agree a little there needs to be some more explanation over each of the settings, which I believe he's working on right now. I think most of it explains itself though. The money management aspects are where I start to get a bit unsure of things.

The focus has been to much around his sets rather then the EA and Optimizer. The whole point of this all is to test your own strategies, make your own sets, or even improve on his if you can, and any suggestions to make any of it better.
With the optimizer you don't even need his sets, just look at what he's using run the Optimizer and you have what he has.

Anyways on to my question. Dave how would one go about extracting other back data from Tickstory (I assume your using that) for other currencies? I messed with the Data format and got it close, but still not the same.
  • #1,320
  • Edited 4:18pm May 18, 2015 1:09pm | Edited 4:18pm
Quoting Shawn29
{quote} {quote} I agree a little there needs to be some more explanation over each of the settings, which I believe he's working on right now. I think most of it explains itself though. The money management aspects are where I start to get a bit unsure of things. The focus has been to much around his sets rather then the EA and Optimizer. The whole point of this all is to test your own strategies, make your own sets, or even improve on his if you can, and any suggestions to make any of it better. With the optimizer you don't even need his sets,...
The data comes from Dukascopy through the JForex platform but you can use Tickstory or TickDataDownloader as well. The data from the last 2 mentioned comes through as tick data which is converted to 1 minute data as it is exported to CSV. The weekend data is stripped.

The advantage with Dukascopy is that the data can be downloaded in 1 minute format . Any one minute data which is comma or space separated and conforms to the following format yyyyMMdd, hh:mm, open, high, low, close, volume is acceptable.
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