Hi all!
Lately, I have been running the Reactor constantly, using Walk Forward optimization, Walk Forward validation, and Monte Carlo, and have been getting between 3 and 10 strategies into the collection each time for several different forex pairs on the M5 and M15 timeframes.
I had stopped demo trading for a while, as the strategies I was generating were failing badly, running a £1000 demo account down to £750.
With the new settings mentioned above, I have steadily built up approximately 50 EAs on the same demo account, and the balance is up to £ 870 after two weeks.
However, being that I am keeping notes of what the parameters of each EA are in a spreadsheet, I am noticing that I now have a lot of strategies that are very similar (Donchian Channel is a very, very popular indicator!), and most of the strategies have no TP, and even fewer have SL.
I read through all eleven pages of this post last night, and in an effort to implement better risk diversification, and at the same time, simplify and strengthen my strategy management method I have come up with the following plan.
It will be a lot of work, so before I embark on it, I would like to know if anyone here with some experience could add to, or advise any changes to it?
I have included some of your ideas here Jacpin, so would be very appreciative to hear your thoughts?!
EA Studio Algo Trading Plan
1) Forex pairs: EURUSD EURGBP USDJPY GBPJPY EURJPY GBPUSD AUDCAD AUDNZD NZDCAD
a) Have an even mix of each currency throughout portfolio
b) No currency appears more than three times
c) low spreads
2) Timeframes: M5, M15 and M30
3) Always 0.01 lot size, to keep it simple. Profits will come as the EA collection grows.
4) For risk diversification, create several types of Reactor settings for each timeframe. For instance:
a) one with no SL or TP
b) one with trailing SL and no TP
c) one with trailing SL and TP
d) one with Always SL and TP
5) Common Acceptance Criteria must always have:
a) minimum profit factor: 1.1
b) minimum count of trades: 300
c) maximum equity drawdown: 15 %
d) minimum 70% win/loss ratio
e) In Sample: minimum profit factor: 1.1
f) Out Of Sample: minimum profit factor: 1.1
6) Strategies that pass each set of Reactor settings to be tested in a separate MT5 demo account until FX Blue analysis decides if strategy is good enough to trade live
7) Using FX Blue, strategies that win minimum of 7 out of 10 trades will be moved to live after a minimum of two weeks testing
8) Using FX Blue, strategies that win less than 7 out of 10 trades will be deleted
9) Live strategies that win less than 7 out of 10 trades will be sent back to demo for monitoring