Nearly a year ago I started a demo to see what PoS was capable of, and it turned out beyond my biggest imagination.
During the first week or so, I used 4 timeframes but quickly discovered that the 'lower' timeframes, M15 and H1 created to much DD because they had to obey the higher TF's and the 6th of the lower ones was broken often.
After I killed all the M15 and H1 trades, I sticked to H4 and D1 after that.
I fumbled with settings, noticed that some pairs made 3 recoverytrades within the upper 6th, and other pairs made 10 or more of these. Not to good for the DD as well....
I then started splitting the pairs in groups, ranked by the distance between 2 lines of the 6th indi.
After separating the pairs, I looked for a 'sensible' lotsize and calculated the lotsize so, that a trade running the 6th distance to TP would make appr. 1% of the balance. The MarketDistancePips I choose so, that 3-4 recovery trades would open within the 6th. DD kept more or less in check after that.
With a few months experience on the demo, I opened a $400 cent-account and started trading this setup live.
The demo went flat, with no open trades just before X-mas 2017 and I decided to let it run unattended from that moment so I could concentrate on my live trading account.
Where the demo went from $10.000 to $34.563 in 2017, it more than doubled in the firsts 6 months of 2018, totally hands-free!
What I noticed earlier, and can be seen nearly every month is the fact that at the end of the month; DD increases, only to recover and some more during the first week of the next month. I drew the little yellow boxes on the chart to show what I mean. My gut tells me there is something we can use this for, just not sure what.
My live account went from a cent-account to a GP standard account after I made enough to let PoS run there. I tried a lot a stuff to increase profit, but what increased most was the DD.
Now I decided to just let PoS run live like it does on my demo, and be happy with the profits and the lower DD.
What I learned during the past year; it sometimes takes a little time and patience, but the price ALWAYS comes back to the middle.
To check the account: https://www.fxblue.com/users/2085517
