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Hey Alan,
I’ve not been affected by this rule but one way round it might be the following:
Let’s say you want to create a portfolio of 15 EAs on three different pairs. 5 on EURUSD, 5 on EURJPY and 5 on USDJPY.
You set each of the 5 EAs to trade a slightly different lot size (0.01 – 0.05) choosing what EA gets what lot size based on ranking suck as largest stop loss size, or largest nett profit for example.
That way you could all of these on the same account and they would trade together without affecting each other, and you have 0.15 lots assigned to each of the three symbols for balanced.
Like I say, I am not affected so never thought about it until now, but that’s what I would do if I was. Unless I am misunderstanding.
Also for incubation accounts would be easy enough to set different EAs with different lot sizes and then just organize at the FXBlue point and just use the profit factor to pick winners as that will be unaffected by lot size.
Hey Alan,
Yeah I think I am a little confused. Can I ask what you would like this portfolio to look like that would be unaffected by the FIFO rules.
Presumably something like 10-20 separate EAs each for different Symbols so that they cannot interfere with each other? As opposed to many strategies that I myself trade that includes several different strategies for the same symbol that could be affected by FIFO rules (which I am lucky not to be affected by).
Is this correct?
I am sure many are affected by the FIFO rule and so clarify is useful. Pretty sure I understand your point now though.
Although it does sound like you are getting confused maybe Alan?
If you think an EA containing multiple strategies would help with FIFO such as a portfolio EA, it won’t.
A portfolio EA can only open trades on a single asset and timeframe and so would try to open multiple positions and FIFO would apply in same way as if trading 10 separate EAs on same symbol and timeframe.
Hi Petko,
I thought exactly the same when I read that comment as a portfolio EA trades the same symbol and timeframe so would not change anything with regards to FIFO.
I am guessing what Alan means isn’t a Portfolio EA but a portfolio OF EAs for different assets, right Alan?
Although this is pretty much what’s offered in the 12 expert advisor course. Although in this course there are 2 EAs per symbol which would affect the FIFO.
It sounds like what you are looking for is something like 12 strategies each on different symbols Alan?
Of course you could use 6 from the top 12 and put those together and supplement any others you have from different courses on symbols not included in the 12 expert advisor course too.
On this size of account I’d stick to forex and only open 0.01 lots size positions.
The easiest way is gonna be to just open a demo account with 10k balance and the same 30 leverage. Then open enough 0.2 lot size position manually until you hit about a 1/3 of your margin.
Since 10k/0.2 lot is the same as 0.5k/0.01 lot that will be the number of EAs you should trade on your 500 dollar account.
This should take 5 minutes to open a new account and 5 minutes to do you calc :-)
Ah yes I see now, no underlying asset is bought for CFDs or spreadbets but there are some additional tax benefits to spread betting.
I still prefer CFDs though.
Im sure that’s useful for others who may be interested in spread betting. Cheers Julie
Hi Julie,
I can’t say I understand your question. Aren’t we all effectively kind of “spread betting” when we trade CFDs?
Can you make your question clearer please.
Why is it that you think you will need to edit the EA code? What exactly is it that you are trying to do?
Hey Alan,
Your thoughts are correct as far as I am concerned. Drawdowns are inevitable no matter how good the account. If the principles however are solid and you have faith in your system along with setting sensible levels of risk then riding them out is needed when they occur.
It takes time and practice to develop this faith and experience and therefore scaling up slowly from demo, to small live to incremental increases in trading capital is a sensible path.
I also wouldn’t be confused with drawdowns occurring. All portfolios have stagnation periods.
Its up to you to decide wether it is a stagnation period or a poor system which comes with practice and time (experience)
Hey Alex, to add to what Petko has said.
How much you trade depends on your risk tolerance you want to make sure that first you are at no risk of a margin call so should calculate what your max margin would be if you had an open trade on all your EAs and adjust accordingly (use half your margin at most).
Also you should have rough idea of what your range of profit/drawdown would be per month or so, best to make sure that also this limits your drawdown to your risk tolerance. 5% a month works for my sanity
Hi Alan,
Take a look at the long/ short balance curves for your strategies in EA studio.
You may find that they are strategies that have performed best taking short trades but not so well for long trades?
Also you could run a backtest in MT4 with visual mode turned on to see clearly where on that chart you are making your trades for each EA in order to get a better understanding of how things have been trading.
Good job on comparing your EA studio results with FXBlue.
Doesn’t need to be complicated regarding combining assets Alan, 3 or 4 different assets is plenty.
Try EURUSD, EURJPY and USDJPY for example or EURUSD, EURGBP and GBPUSD
Regarding the different Assets suggestion this is just my opinion.
Trading a portfolio of a single asset can work provided correlation between strategies is low, although I would be mixing timeframes personally.
Also certain reactor settings will work better for different assets so I expect that’s why Petko has courses focusing on a single Asset.
Additionally you could combine portfolios from different assets. I personally just trade single EAs but would definitely be happy with converting Ea Ea to a portfolio Ea that combines several strategies for a single asset, time is the only reason I don’t do it at the moment/I don’t feel it’s necessary even if it would be good.
Hey Alan, that all seems sensible enough, it sounds like you are running the normalizer one the validator? I would remove that personally as it’s already been run in the reactor. Monte Carlo a second time is fine
Also in the validator I would remove the OOS = 20% as it should be in sample.
Further to this I would suggest using an mt4 demo account to validate that your selection of EAs using EA studio matches your selection using FXBlue to make sure you have things set up properly.
Hey Alan, well that’s the great thing. You can do the free trial as many times as you want but can only do one at a time.
I don’t manual trade at all anymore, I just traded a portfolio of 10 EAs on various symbols
Hey Petko,
Basically the FTMO challenge is that you can pay an entry free (depended on size of account but is about 150 dollars for a 10k account).
The to pass the challenge you must meet the profit target in 30 days while respecting the drawdown rules.
IF you pass the challenge then there is a verification phase that basically gives you twice the length of time to achieve the same target again.
At this point you are awarded the 10 account to trade on and will be able to withdraw real profits each month (20% of the profits go to FTMO though)
But they have a free trial that allows traders to try half the challenge period for free and provide the same metrix so it’s a really good free way of testing yourself :-).
I used to try the free trial loads and failed almost everytime when I was getting started, but now I just take it occasionally for a bit of fun and do pretty well most of the time :-)
It is certainly challenging to pass such targets while avoiding drawdowns for the full challenge and verification period though so gotta know what you are doing for sure. I prefer to just trade my own money without the rules although they are very good rules to follow but at least a small breach doesn’t result in losing an account.