10,000 Pips GBPUSD Generator!

We recently published the 10,000 Pips GBPUSD Generator on the MQL5 Market. See more info below.

10,000 Pips GBPUSD Generator!

Description

10,000 Pips is designed for MetaТrader 5 to trade specifically the GBPUSD M15 chart. It has been back-tested with every tick from January 1^st, 2003 to December 31^st, 2014 without compounding. The results have gained greater than 10,000 pips with more than 2,000 trades.

Trading Strategy

The trading strategy offered here is only a subset of our trading design. We believe that the market has 9 different states and that at least 9 distinctive algorithms are required for each trading instrument. However, we cannot offer the entire 18 algorithms for trading the GBPUSD. In our full system design, we use two unique algorithms per state for comprehensive coverage.

We don’t believe in high winning percentage systems that will wipe out your account with one bad trade. We don’t utilize martingale betting as it is for gambling, not for trading. Each of our trades is placed with fixed stop loss and take profit. We only need 45% winning trades to breakeven and 50% winning trades to generate a significant revenue.

We believe that risk and reward go together; hence, compounding is a double edge sword. It can generate a lot of profits, but it can also put your account at risk. You can read more about our trading philosophy in our book entitled "The Bull, the Bear, and the Baboon – FX Lessons Learned the Hard Way." The strategy has been tested with more than 109,582,587 ticks on MT5 “Every Tick”.

Usage requirements: Pro or ECN account (Market Execution) with spread ranging from 1.5-4.0 pips (15-40 pips for prices with 5-digit precision).

Symbols: GBPUSD exclusively.

Maximal drawdown depends on the initial deposit and whether compounding option is selected.

How to read back-tested results for fixed 0.1 lot trading from January 1^st, 2003 to December 31^st, 2014 (1 pip = $1):

• 1) Total Net Profit > 16,000 pips (averaging 1,000 pips per year)
• 2) Total Trades > 2,000 trades
• 3) Profitable Trades > 50%
• 4) Largest loss trade = 160 pips (user can modify to smaller Stop Loss as desired)
• 5) Largest profit trade = 160 pips (user can modify to smaller or larger Take Profit as desired)
• 6) Drawdown = 2,393 pips
• 7) Reward to Risk Ratio = 16,250/2,393 = better than 6.8 to 1

Given that speculative currency trading presents the risk of substantial losses, only persons with high net worth and the ability to absorb such losses should consider participating in the programs offered.

Recommendations for Maximizing Profit

• 1) Set Stop Loss = 180 pips and Take Profit = 260 pips
• 2) Set Stop Loss = 240 pips and Take Profit = 260 pips
• 3) Set Stop Loss = 260 pips and Take Profit = 220 pips

Recommendations for Minimizing Risk

• 1) Set Stop Loss = 260 pips and Take Profit = 200 pips
• 2) Set Stop Loss = 100 pips and Take Profit = 260 pips
• 3) Set Stop Loss = 120 pips and Take Profit = 120 pips

Operating Guidelines

• It is recommended to have 18 algorithms trading one single instrument. The collection of numerous algorithms will act as a portfolio to provide proper diversification.
  
• It is important to back test a system over 10 years with at least 1,000 trades.
• On average, the system will generate approximate 1,000 pips/year; however, some years it will be considerably higher and some years it will be much lower.
• Don’t use trailing stop loss. If necessary, move the Stop Loss once and let the system perform the trading for you.

Author

Winsor Hoang, is the author of “The Bull, The Bear and The Baboon – FX Lessons Learned the Hard Way”, a former Commodity Trading Advisor (CTA) registered with the NFA and an automated trading researcher since 2003. Winsor actively works with several high profile mathematicians, statisticians, computer scientists, and computational finance specialists at the University of Calgary and other leading institutions to develop reliable and robust trading systems. Joint FX research has also produced several academic papers that have been published in first-class international scientific journals such as Journal of Mathematical Finance (JMF), Elsevier Procedia Computer Science Journal, Institute of Electrical and Electronics Engineers (IEEE) Journal, and International Conference on Computational Science.