Bruster400 » Tue May 03, 2016 6:03 pm wrote:
A long straight run will always leave this EA in DD, that's the nature of grid trading. The profits grow linearly and the losses build exponentially so you'll never have enough profits to close all your losses - you're always relying on a retrace. However, the whole point of this bot is that it copes with this issue better than standard grid traders. The big wins that you were hoping for from the strong move have happened, it's just that they've been "offset" against the even bigger losses of your worst losing sell trades. In this way, this bot has kept down DD significantly and banked a few pips in the process.
The big issue you're facing is that you're account is over-traded - the current view on balance requirements is 0.01 lots per $2000 per pair and even that doesn't come with a comfort guarantee!! Today's price action wasn't particularly unusual and anybody trading this bot needs to do so with a full understanding of what it's capable of.
Hi,
quoting Hanover about the suposition that:
Dr. Van Tharp demonstrated in one of his books that sound money management, exit strategy and postion sizing can make random entry a profitable system.
He says:
I respect many of Van Tharp’s views. I’ve read Trade Your Way to Financial Freedom, subscribe to his free e-mailed newsletters, and have watched a couple of his videos. However, just because he’s written a couple of best-sellers, and runs seminars across the US, doesn’t make him infallible, especially if people choose to quote him out of context.
On the surface, Van (and his mate Chuck LeBeau) apparently believe a profitable system can be built around random entries. But it should be pointed out that their views were publicized, in the context of trading stocks, during the strongly trending bull markets of the 1990s. When markets trend, accuracy in entry becomes less important.
I programmed yesterday a very similar system, which earned 4% in two hours, because it took a trend. When the trend finished the system became a disaster (even includin stop losses, compensation of positions, variable grid,etc.). I think a good money management never can replace a good entry.
Excuse me for being pessimistic about this system.
Regards
José Luis |
