TIIDAexplosive
- Эксперты
- Ta Hai Shen Yuan
- Версия: 1.0
- Активации: 20
The specific price movements before and after the determination of the Japanese mid-rate (TTM) exhibit high profitability.
In addition, by applying a Martingale strategy when losses occur,
this EA overcomes the weakness of 'slow drawdown (DD) recovery,'
which is a common issue with single-position EAs.
This is the greatest feature of this EA.
Weaknesses of Single-Position EAs
It can be said for all single-position EAs that while they are capable of generating stable profits in the long run, they have their weaknesses.
One such weakness is the "length of drawdown periods."
I have back-tested and analyzed over 400 EAs on the market, and when conducting long-term backtests of about 15 years,
almost all single-position EAs have drawdown periods of more than 300 days.
In essence, there will be times, nearly a year or more, when the EAs do not generate wins.
Would you want to continue using an EA that hasn’t won for a year?
I think this is a very important point to consider.
"If you have been using it for over 5 years, and it only started to make a loss in the 6th year,"
this situation seems more trustworthy to continue using.
"What if the first year you started using it happened to be a downturn, and despite believing in it for 3 months, six months... it never turned a profit over the year?"
What about this scenario?
Even if the backtest data shows that such drawdown periods are expected, a real year can feel long, and it’s natural to mentally reach a point where you no longer want to use it.
"Mentality is irrational and can easily ignore data."
I myself realized this after experiencing a long drawdown period one day.
"It's not just about data;
considering your mentality and
formulating a strategy that suits you"
I have come to realize that this is incredibly important.
Martingale Strategy and Its Benefits
To briefly explain the Martingale strategy,
you enter a single position, and if it loses, you double the lot size for the next entry.
For example, starting with 0.1 Lot and trading six times,
Win Lose Lose Lose Win Win
and assuming a capital fluctuation of $10 per 0.1 Lot, the scenario would be:
1st trade: 0.1 Lot Win +$10
2nd trade: 0.1 Lot Lose -$10
3rd trade: 0.2 Lot Lose -$20
4th trade: 0.4 Lot Lose -$40
5th trade: 0.8 Lot Lose -$80
6th trade: 1.6 Lot Win +$160
Total: +$20
Despite a 33% win rate, a profit of $20 has been achieved!
In EAs that use a fixed lot size, you need an equal number of wins to recover from losses,
but the Martingale method allows you to recoup losses with fewer wins by controlling the lot size.
In other words, the Martingale method is perfect for shortening the drawdown (DD) period because it enables quicker recovery from drawdowns.
This is a brief explanation of the Martingale method and its advantages!
TIIDA_explosive can also operate without using Martingale
As you can see from the attached backtest images, this EA can expect high profitability even without using Martingale. However, by employing the Martingale method for lot management, you can expect to earn more profits.
With TIIDA_explosive, you can set the Martingale lot multiplier in the parameters, so if you set it to 1, you can use it just like a normal single-position EA.
I hope you find the settings that suit your preferences!
