SSA Fixed It - Existing Model Explanation

SSA Fixed It - Existing Model Explanation

11 May 2019, 11:24
Max Brown
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'SSA Fixed It' is a channel breakout fully automated expert advisor incorporating Artificial Intelligence, correlation studies and Singular spectrum analysis (SSA) .  SSA is used to determine the high probability breakouts to trade.  The output from the SSA is then fed into an Artificial Intelligence algorithm and the agents that are embedded in algorithm generate a buy or sell order.  This system has maintained its edge for over 15 years.

SSA Fixed It is an active project where the system developer and customers collaborate to foster continuous improvement of the strategies within the EA.  As traders, we appreciate the performance of some strategies degrade over time and sometimes no amount of tweaking or optimising can return the strategy to former glory.  Maintaining a deep pool of candidate models available for free testing comes with the following benefits:

  1. If a model's performance degrades we have replacements;
  2. Since customers are demo testing candidates models, it gives them the opportunity to become acquainted and confident with the way a particular models trades.  The importance of this should not be underestimated since after live account deployment, the trader will feel much more comfortable allowing the strategies to do their job without interference;
  3. Customers pay once but receive a continuous supply of new strategies, traders decide if the strategy is added not the developer so a one-time purchase was ultimately an investment in a continuous stream of strategies.
  4. Customers are able to request specific candidate development; so if a customer has an idea they think could make a good trading strategy, they are able to request a candidate to be developed and assuming the idea is viable from a system developmental perspective, a candidate can be delivered.  In this way an investment in SSA Fixed It is also akin to purchasing a retainer of an excellent system developer who maybe able to transform your idea in to an outstanding EA for the entire SSA Fixed It community to enjoy. 


The core strategy component of the EA are the staple of pip generation and fall under the following headings:

  1. SSA Default Deluxe;
  2. SSA Weekly Swing;


    SSA Default

    Strategy Overview

    1)      SSA Default trades multi-timeframe fractal with secondary SSA confirmation.  Not Fractals of the Bill Williams type which you will often see depicted as small triangles on the chart, this strategy trades actual Mandelbrot Fractals.  The idea that traditional technical tools such as Stochastics, Relative Strength Index, Commodity Channel Index etc can predict or forecast price turning points with any type of reliability is naive.  Multi-position trading systems that rely on naive indicators ALWAYS blow-up eventually.  I think we all know this to be a stylised fact because naive indicators remove essential frequencies and amplitudes from the underlying price; frequencies that inform us of the time-frame fractal and amplitudes that inform use about the size of the fractal move.  Filter these essential components from price and what usually happens  will continue to happen (account blown).

    SSA Default Deluxe assesses short, medium and long term fractals to determine trend continuation points and reversal points.    

     FRACTAL

    2)      After a clear continuation or reversal fractal point is isolated SSA Default Deluxe will enter a trade;

    3)     If price moves against us another trade is entered when there is a 2nd fractal confirmation;

    4)      Since the fractal accuracy is extremely high, SSA Default Deluxe does not have a maximum order number and controls risk by the use of an equity stop-loss.  Using the default settings and traded as a portfolio, this strategy has never hit the equity stop-loss.  Backtests matter when considering the purchase of multi-position strategies, even more if it is only trading one pair.  If the system blows the account in the backtest it would be clear signal it will blow your account in the future.  SIngle parameters can be tweaked to help a single pair strategy pass a backtest, no such tweaking is possible or needed if the EA can pass a backtest on 60+ pairs and instruments using the same base parameter settings.  Which one would expect if the EA is built using the price generated market structure that determines price movement.

    5)      There are two lot size choices a fixed lot or a lot per account balance

    a) A fixed lot option;

    b) an  balance per lot option, i.e: account balance of 1000 / balance per lot of 100,000 = 0.01 lot     

    6)      The system has a default take profit target and all trades are closed at this value when price reaches it.


    INPUTS EXPLAINED IN DETAIL FOR SSA DEFAULT DELUXE


    In keeping with the general philosophy  of less is more & plug and play.  Only the critical parameters are available for modification.  We keep the standard wording across all our EAs so regular customers can hit the ground running:

    1)  Magic Number : (Default = 995544)

    a.    Please use a different magic number on each chart if you are trading the same currency on 3 timeframes.

    b.    Also please make sure the magic number does not conflict with the number of existing EAs running on the same account.

    2)  Fixed Lot per Trade

    a.  This setting will create a static lot size per trade son if set to 0.01, 0.01 lot will be traded for each and every trade.

    3)  Balance Per Lot

    a. You may be more familiar with the term auto lot.  This sets the account balance you require to trade 1 whole lot.  For example if your account balance is 3000 and your balance per lot is 100000 your trade size would be 0.03 lot per trade.  This is dynamic lot sizing therefore as your account increases so will your position size.  A picture paints 1000 words:

    bb

    4. Equity Drawdown Percentage

    a) This has to be a negative value.  It determine the amount of equity drawdown allowed before closing all positions.  If you specify -20 this means your equity would have to decline by 20% before positions are closed.

    Four simple parameters mean you can get to work trading quickly without becoming an expert in trivial things.


    5. Pairs to trades

    a) SSA Default Deluxe works and most forex pairs: Major, Minor and Exotic; however the best pairs to trade are depicted in the following image:

    a



    SSA DEFAULT DELUXE PROFIT AND RISK ANALYSIS

    https://www.mql5.com/en/blogs/post/726512




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