how to generate high Win/Loss Ratio?

[Charbel]

Hello Dear,

1-Well guys I’m still in the trial period, I need to ask you how I can generate strategies with high win /loss ratio (Win rate more than 90%) even if these strategies are losers on the long term? what parameters should I Use? knowing that I almost tried everything..sure I am missing something…I couldn’t even generate any single strategy..that’s why  I am  sure I’m missing something.

2-Another thing to make sure about When you set the win/loss ratio=9 in the EA studio acceptance criteria, this should means that the win rate =90% Right? knowing that in the FSB pro the max win/loss ratio=1.

Please any help is appreciated,

kindest regards

 

[Charbel]

Not a single reply??

please guys, I need your help, I’m trying to generate scalping strategies  with high win/loss ratio, i tried almost evthg ..pls i need the parameters …

pls reply

[Petko Aleksandrov]

Hello Charbel,

Glad to hear from you. Well, actually not.

When you add a win/loss ratio in EA Studio what you see is 0.5. This is the default and it means 50% winning trades. Or we can say 5 out of 10 are winning. If you want to have 90%, you need to put 0.9. This way you will have 9 out of 10.

But when you place 9 as a value, you are asking for 900% 🙂 That is why you couldn’t generate strategies.

Actually 0.9 is still a high requirement, but give it a try.

Cheers,

Petko A

[Simon]

Hi Charbel,

 

I have yet to experiment with that parameter of the Acceptance Criteria, but my hunch is that looking for a 90% win rate is not too far off seeking the holy grail.

I don’t think there are many strategies that will meet such high demand.

Maybe if you run the generator long enough with only the 90% win/loss ratio set as acceptance criteria, you might have some luck?

All the best,

Simon.

[Charbel]

Petco & Simon,

M very grateful for your support, but my question is: probably on the long run most strategies with high Win rate (80% and higher) are loosing ones, so does the EA studio show strategies with negative net PL? (knowing that win/loss ratio is the only acceptance criteria set)

How many hours do you think i will have to run the generator?

Sorry guys but i m new to algo trading,

Again I highly appreciate your help.. 

[Simon]

Hi Charbel,

I don’t think losing strategies will be shown, I think there is built in criteria that if a strategy makes less than 0.10 of currency, it is a loser and not shown to you.

I’m pretty new to Algo trading as well.

What I have learnt from Petko is that most, if not all, strategies have winning phases and losing phases. Do not waste time looking for the perfect strategy. The way we get around the losing phases is to have so many strategies working at once, that the losers don’t matter, because the winners are winning more than the losers are losing.

Petko’s education and the software give us the tools to generate robust strategies that put the odds in our favour.

It is not a case of finding a perfect strategy, and giving up your job. It will take time and work on a regular basis, like growing a garden, you have to nurture the good strategies and weed out the bad.

EA Studio is the sunshine!

Learn how to use it, the amount of work it does for you is amazing.

Recently, Petko posted that it had calculated ten million strategies in three days. I’m pretty sure it would take me longer than that to calculate ten million strategies manually!

Now that I have seen how difficult it is to find a decent strategy, sometimes even for EA Studio, I feel bad for those who trade manually by staring at screens waiting for an entry. They are spending weeks/months/years experimenting with a single strategy that EA Studio might throw in the trash in less than a second!

My advice is, invest in EA Studio, invest in Petko’s education, learn all the different ways it can be used, and in time the profits will come.

Start experimenting with the acceptance criteria:

Minimum profit factor: 1.1

Minimum count of trades: 500

Maximum drawdown %: 15

In Sample: Minimum profit factor: 1.1

Out Of Sample: Minimum profit factor: 1.1

You could just run the Generator with these settings, and see what comes out, which will be raw strategies, with no robustness validation.

Or you could get EA Studio to do more work for you, and run the settings on the Reactor, and set the extra modules there to perform the robustness testing for you.

Lately, I have been using the Reactor with Walk Forward Optimization with out-of-sample settings, Walk Forward validation with out-of-sample settings, and Monte Carlo.

I run the generator for 1440 minutes (24hrs) and usually end up with between three and ten strategies in the collection.

Running it for 24hrs means I can set time each day to repeat the process for different forex pairs and timeframes.

Because EA Studio has done all the work for me, I trust that the strategies are robust, and put the straight into Metatrader Demo for testing.

Then if the results in FX Blue are good I will move them to a live account.

Good luck!

[Andi]

Hey Simon,

I liked your post, it’s describing what I went through already.

What you say ”invest in EA Studio, invest in Petko’s education, learn all the different ways it can be used, and in time the profits will come” is exactly what I did two years ago, and the profits came.

The bad thing is that I lose four years before that in manual trading…but that’s life!

However, I am quite interested in what are your acceptance criteria, so you get up to 10 strategies for 24 hours. I usually run the Reactor for 10 hours and end up with about 30-50 strategies. Then it is hard for me to remove some because they are all good, so I guess if I have less, it would be more comfortable.

Thanks!

[Author]

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