User Guide for Trend Domination EA.
How to backtest Trend Domination EA:
Trend Domination EA has provided promising results in a series of backtests performed on the 10 years of data starting from 12-05-2008 to 10-05-2018. You can use the following SET files for each pair to perform the similar backtest.
This EA incorporates a trend-following strategy that is specifically tested and developed for GBPJPY, GBPUSD and EURJPY on M30 Time Frame. Buy/Sell opportunities are provided by our custom built channel indicator.
After receiving the signal from our custom indicator, EA opens medium-term positions that can last between few hours to several days. Hence, the use of a VPS is highly recommended.
This trading strategy performs best when optimized at regular intervals. For our own trading, we've chosen the optimization window of 8 Months. " The trading strategy was last optimized on 01-05-2018 so next optimization will be done on 01-05-2019".
How to use Trend Domination EA for Live Trading:
1. Choose your risk category:
We divided the risk into three categories:
- 2% = Conservative
- 4% = Moderate
- 6% = Aggressive
Max. drawdown tolerance for each category is different. Return On Investment(ROI) received from the market is inseparable from the risk.
- Conservative : Max. Drawdown of 15-20%
- Moderate : Max. Drawdown of 20-25%
- Aggressive : Max. Drawdown of 25-30%
2. Once you select the risk category, there are two ways to proceed ahead:
Download this remote accessing software and send us a message, I or someone from my staff will setup everything within 5 minutes.
Do it yourself:
- Download the Live Trading EA SET files attached at the bottom of this post.
- Open four M30 chart dedicated to each symbol. As we are trading GBPJPY, GBPUSD and EURJPY so there will be total 12 charts.
Understanding the Risk category and market exposure:
Distribute the risk into 3 equal parts(because we are trading 3 pairs) and further distribute the risk into 4 equal parts (because there are 4 charts dedicated to each pair).
If your risk category is 6% Aggressive:
- Dividing 6 by 3 gives 2
- Dividing 2 by 4 gives 0.5
Risk per trade for the Aggressive category is 0.5%
If your risk category is 4% Moderate:
- Dividing 4 by 3 gives 1.33
- Dividing 1.33 by 4 gives 0.33
Risk per trade for the Moderate category is 0.33%
If your risk category is 2% Conservative:
- Dividing 2 by 3 gives 0.66
- Dividing 0.66 by 4 gives 0.16
Risk per trade for the Conservative category is 0.16%
We will load the EA on each chart with their respective SET File and change the Risk Percentage per trade according to the above categorization. Since we are trading 3 pairs with their respective 4 different iterations, it is possible that a buy position and a sell position can co-exist together on the same pair.
By following the above steps you've deployed a hedging mechanism that generally stabilize the returns and distribute the risk.
To be continued.....