Tagged: algo trading plan
- November 29, 2018 at 16:58 #7173
I took the approach of spreading my risk around multiple assets. As a result, I am currently demo testing 24 different assets with 4 EAs for each asset (2 M15 and 2 H1). That’s a total 96 EAs. My asset mix is made up of crypto, forex, precious metals, indicies, and energy. I currently have 3 EAs live right now. I’m about to put the 4th one on. My current closed profit is 412.53USD. I’m so thankful for EA Studio.
I just wanted to put this question out there to see how others are using EA Studio.November 30, 2018 at 12:24 #7190
Nice result there! IS that with 0.1 lot traded? If yes that is nice nice nice.
At the beginning I started as well with many different assets but at the end I figured it out that only with Forex it is worthy to trade and spend my time.
Are the three EAs you have been using on Forex or anything else?November 30, 2018 at 14:19 #7193
Hi there! Yes, this is with 0.1 lot traded. I took Petko’s advice and will trade with 0.1 lots until I have more than 10 EAs running. At that point, I will reduce them to 0.01 lots if it makes good risk management sense (such as depending on whether or not I am 10k account balance).
Yes, the three EAs are Forex. This is only because I started with Forex pairs when I first started creating EAs through EA studio. It took me about 1.5 months to create all the EAs for all the different assets. Depending on stagnation and when I started them in demo (max 30% stagnation and placed in demo either October or November), most of them should be completing the demo testing period by the end of December. So, I estimate I will be around 10+ EAs to start in January.
My three EAs that are live and generating profit are: GBP/USD M15, EUR/GBP M15, and AUD/USD H1. The GBP/USD, I went live around end of October, AUD/USD around beginning of November, and EUR/GBP about a week ago.November 30, 2018 at 18:37 #7199
That sounds like really nice approach and good stable results.
Last month I ended with above 1000 pips but trading with 0.01. I am somehow afraid to trade with 0.1, may be just because my live account is small. Anyway I am very happy I met Petko, and learned all from him. His advises are treasure!
Regarding the 3 EAs, I would suggest you to make a better diversification when choosing the currency pair. In this case you have 2 times the GBP, so you are putting bigger exposure on it. Simply, if there is some dramatic move around the Brexit now, you might see some unstable results, but they could be profits too 🙂
How long time have you been testing the EAs on Demo account? I am using Petko’s method on min 100 pips and 10 trades opened and closed.November 30, 2018 at 19:25 #7210
@Haliffa-Yes, you’re right. I am wary of the whole Brexit thing, but I’m just going to let everything play out as it may. My 4th EA that I just went live with yesterday is GBP/JPY, so you’re right..GBP is playing a big part in my trading. But then again, this currency has been the most active during the time I have been trading.
I do have 3 more EAs that look like they should be ready to go live within the next week or so and it looks like a better mix: Natural Gas, Silver, AUD/JPY.
I test the EAs in Demo with this criteria:
Min 10 trades-Opened and closed
Min win %-70
Min trade time-2 weeks
*I immediately get rid of any EAs that have more than 3 losses before it even gets to 10 trades as it already fails my criteria of a 70% winning performance.
I don’t really pay attention to the min # of pips because with a 70% winning percentage and taking profit around 50 pips on average already in my EA, I make that 100 pips easily. Also, it wouldn’t apply to the other assets I trade like the indicies, gas, silver, etc. So, I try to keep things as simple as possible to let me run through the analysis results. I use FX Blue Live to do this (Thanks Petko for letting us know about this website).
I started Demo testing in September and went live in October with those that passed the criteria. I spent a lot of time creating the strategies for all the different assets and also to replace ones that failed.November 30, 2018 at 21:35 #7225
Getting addicted to the forum, and learning more…thanks for sharing your experience!
At the end of the day you are trading different strategies and Expert Advisors with the GBP, so you are having the diversification there.
As well I do believe you have SL with your EAs, so even something dramatic happens there, it will be one losing trade.
I have never tried the Gas and Oil, I will think of testing those. To be honest I copy the trading currencies from Petko, as I see he has great experience in trading, and he found out that these work the best for him. Of course I do realize that if they work for him, it does not necessarily mean that that these EAs will work for me too. And yes, the experience is quite important I do believe.
Wow 70% is huge! At first I started with the logic that anything above is 50% is good enough to be traded, and then I went up to 60%. Recently I use more the Profit factor of min 1,2.
Yes, I spent as well nearly all my free time in creating EAs and testing them. I started in June I do believe…and I September I am live with 10 EAs. Nov was not really my month but the previous two were great. So you thumbs up! You are going much faster.November 30, 2018 at 21:40 #7226StephenParticipant
WOW! Nice to see this topic, That is a question I am thinking about nearly every day. I have changed my portfolio like 100s times, and still can not get on live.
If some of you can give me an idea how to make it more simple it will be great.
I started with EURUSD…like 10 EAs as Petko shows in the course. But then when I got more of his courses I saw that he uses many other currencies. So than I did the stupid mistake to create 10 different portfolios and all were with the EUR. Simply I Wanted to have 10 different portfolios with 10 different EAs. And I did like EURUSD,EURGBP,EURJPY,EURAUD..etc. Obviously one day the eur felt like a stone, I think it was somewhere on 12th this month. Most of my positions were buys, and I saw a massive loss. I wrote to Petko, and he said that I made the mistake to put a lot of exposure on EUR.
So now I try to restart and make a good diversification, and if you can give me some starting point will be much appreciated!December 1, 2018 at 0:17 #7234
@Haliffa-You are absolutely right. I actually prefer to trade with a stop loss and take profit. When I generate the strategies, I don’t do this. I only do it when I am about to go live. I use demo to show me that the parameters are working and then when I go live I implement my normal money/risk management for my trades. *The best way I do this is by looking at the average pip movement for the asset in each trade.
The only thing I would advise to look out for on Gas, Oil, etc, is the pip movement and how much it costs. Also, double-check the minimum amount of lots needed to trade. For Gas, I will always keep it at 0.01 lots for account balance less than 10k because the cost per lot is more than Forex. For example, I have a demo trade on Gas right now. It has moved 0.4 pips, and shows a profit of 41.10USD trading a 0.01 lot. Great profit potential with this asset and minimal risk if you manage the lot size and money correctly.
I generate my strategies with the acceptance criteria set at 70% winning and 20% max drawdown. My historical data is about 5 years worth. This makes it a lot easier to have winning strategies when I start to demo.
That is awesome. I figure the more work I put into creating the EAs, the profit from them is my reward. It sounds like your’re doing great as well. Keep up the great work. Happy trading!December 1, 2018 at 0:29 #7235
@Stephen-I would definitely agree with Petko that you were very heavy on EUR with those strategies. It’s very similar to what Haliffa was trying to warn me about. I only trade with 3 pairs that have GBP in them. I use this as my rule when looking at currencies to trade. For every currency I trade, it is only used 3 times max. So in your case of using the EUR, I have EUR/USD, EUR/JPY, and EUR/GBP. *There is an exception to this rule and that is JPY. I have EUR/JPY, AUD/JPY, GBP/JPY, and USD/JPY. I did this because I am actually quite fond of the JPY pairs as they don’t really move as much as one would think (well according to the strategies that I generated).
For diversification and you wanting to do 10 EAs on one pair, then I would start with the major pairs (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF, NZD/USD) and pick 3 to work with. Maybe split the 10 EAs up with 5 being on M15 and 5 being on H1 or whatever time frames you like to use.
I noticed that EUR/USD, GBP/USD, and AUD/USD tend to move in the same direction so take pair correlation into account as well. I noticed that USD/JPY moves opposite the afore mentioned pairs. I also noticed that USD/CAD and USD/CHF tend to move the same direction as well. Notice I said direction and not necessarily speed. Movement is in an overall perspective, but not always at the same time.
Once you get the hang of it, you may want to take a look at cross pairs as well. 🙂 Hope this helps.December 1, 2018 at 11:42 #7246
I am happy to see your answer. It makes it very interesting to see that with Gas you can have quick profits(on small moves) I will look at it on Monday.
How did you get so much of Historical data? I barely have 2 years on M15 charts…
Yes, you are right, the more time and work we place into it, the more profits are coming(the last month I was busy with my family, that is why not such good results where there).December 1, 2018 at 17:15 #7250
@Haliffa-I guess the data depends on your broker. For Forex, I’ve seen the data go back over 10 years. However, I only stick with 5 years as a cut off. Since EA Studio is only letting you use a max of 200,000 bars…then 5 years is enough bars for H1 and higher time frames. I believe D1 gives me about 3000+ bars if I go back 5 years, but rarely trade at that time frame. I’ve been sticking to M15 and H1 time frames. For M15 charts and going back to January 2013, that puts me at 146,000+ bars.
For the other assets (indicies, crypto, energy, metals), I don’t have as much data. They only go back as far as April 2018. So, it’s a bit more risky generating strategies for those and I put a lot of importance on being very specific with my filter criteria once a strategy was generated. Also, I started importing and generating strategies on live broker data. I try to keep it simple and not confuse between demo and live. I much prefer live. 🙂
Since you mentioned that you like trading Forex, are there any pairs that are your favorites?December 2, 2018 at 23:17 #7289
I am very surprised to see you have so much data with your broker? I have been collecting Historical data from my broker nearly 9 months and on M15 I am just below 100 00 bars…do you collect the data as Petko says by pressing the Home key and after that dropping the script he provides in the courses? Or you download the data from the History center of the Meta Trader?
I am a fan of the major pairs that have lowest spread. Currently I see most profit in one of my portfolios where I have:
This way I have equal exposure to each currency. And foe each one I have 2 EAs on H1 and M15. So totally I have 16 EAs into the account.
I do not know if I succeeded to make like really good EAs, or it is just moment of 2 and half months where they work well..could be as well from the spread.
Also, when I use EA Studio I round the spread to the higher number so after that when they actually trade, it is with lower spread.
I remember Petko said in some of the lectures that the spread could really effect the results, so I aim at those that have small spread.December 3, 2018 at 3:58 #7298
@Haliffa-Yes, I do exactly the way Petko says. I go to the D1 chart, press the home key for about 10 secs, then press CTRL and – keys together to shrink the bars in the chart, and then press the home key to go back to around August 2012.
I never really paid attention to the spread because I also tend to trade on pairs with low spread (10 or less), but I am thinking that I should start to pay more attention just to be on the safe side.December 3, 2018 at 14:28 #7336StephenParticipant
thank you so much for your replay, and sorry for me being late.
It is interesting to keep this rule of 3 as you say.
Yes, you are right when the USD is second in the currency pair, and when the dollar is strong for example it will force these pairs to go down, and same on the other side. Now since there are only four pairs where the usd is second – EURUSD, GBPUSD, AUDUSD and NZDUSD, I sue it a starting point to figure out the other pairs where the USD is always first.
I realized that when I used the indicator from Petko that shows which is the best currency pair to trade at every moment, it was called FPSM meter I think. Very useful one in manual trading, but now with algorithmic trading I believe it is all about good choice of currency pairs, proper work with EA studio, and good analysis of the generated EAs.December 3, 2018 at 17:04 #7351
@Stephen-I try to keep the rule of 3, but of course my exception is JPY and I forgot to mention absolutely USD. 🙂
Completely agree with you a lot of the effort put into creating profitable EAs makes a huge difference. One of my goals for next year is to start branching off into exotic Forex pairs like EUR/TRY, USD/HKD, etc.
You must be logged in to reply to this topic. Login here