jlcgarcia » Sun Nov 01, 2015 12:12 pm wrote:Hi,
I have received an email that says:
And another one:
My answer to them is as follows:
Dear ...,
after some years trading options and futures, I decided to try the forex market, and I make money following some principles:
1. Only trade pairs with positive swaps. Why ? If there is turbulence, the money goes to this pairs.
2. I use a maximum of 0.01 lots for every 200 euros per pair. Only in the case of the Forex Duck I have breaken this rule and I am using 0.01 lots for every 2.000 euros all pairs, because I am trading only positive swaps and filtering the correlation.
3. Only trade my own EAs. Do not trade discretionaly.
4. Use a NDD broker. I prefer to pay commissions to pay high spreads.
5. I have faith in my EAs (remember only positive swaps, correlation on), but I have in reserve an amount of money equivalent to the sum invested in case I have to rescue the account. I do not close the positions in losses, I prefer to follow the EA.
6. Respecting the compiled code, there are several reasons: first, my EAs have been decompiled, reselled in another forums, ebay, etc. Second, in my EAs I only use two programming shells (one for single pairs and another one for multipairs, there is not anything to change in them). Three, the strategies that conform my EAs derive many times from my intuition that the markets follow a certain model (if any). Have you tried to discuss your intuitions with someone? Finally, I am not posting here any more EAs with expiration, although the intention here was not to avoid them been copied, but forcing that if someone was using one of them successfully, that he/she explains his/her parameters and results prior to obtaining a longer expiration.
Regards
José Luis
Hi,
many people have asked me about the version, parameters, etc, of the EA that it is running in the live account of my signature.
I must remember you one evident thing: your psichological bias about a demo and a live account is very different. In a live account every point that the DD arises is causing you a terrible headache. A demo account will not prepare you for that. There is an aforism in Spain that says: "A toro pasado yo me arrimo más que Manolete", something as "it was as dangerous as seen the bulls from the fence".
If you have the hope of living from trading, you must have a well founded account and as I have said above, same equivalent funds in reserve.
But let's talk about the version of the forex Duck I am trading live (version 19).
First, I must tell you that I have traded live all the versions of Forex Duck, and in the process I have acumulated some DD. That is the risk of experimenting with your live account.
Second, If you run this EA, you will see that this version does not filter correlation, nor spreads. It filters swaps and has an exponential multiplier of 1.2 for the distance between trades.
Third, internally, for filtering, it uses Stochastic and Support/Resistance.
Fourth, when the EA opens a positions it asigns a take profit, but does not open any stop loss. You must say it is risky not having a stop loss. As I have said before, I only trade positive swaps (and I have not the urge of going out fast to close the position if the trade is in a loss) and it is very difficult to quantify where to put an stop loss. If you have any tested stop loss, please let me know.
Fifth, when a trade is in profit the EA begins to trail the position inmediately. Never let a winning trade to reverse in a loss. I think this is the more painful aspect of trading: to see how a winning position turns out in a losing trade and it progresses in negative. Do no let it. One of the first texts on trading told me: never let a trade that is winning 15 pips to revert in losses.
Sixth, money management. I am trading live with a gross account (besides the account in my signature). And I am trading live the Forex Duck with 0.01 lots for every 3,000 euros with 23 pairs. For someone of you it will be too much, for others too litle. You must find your equilibrium between risk and reward.
Nothing more for now, and here it is the EA.
Regards
José Luis
