HOW TO MANAGE YOUR ALGOS

HOW TO MANAGE YOUR ALGOS

21 August 2025, 09:37
Christophe Pa Trouillas
0
37

Hi Algoz,


🎓 This is for educational purposes and to illustrate a point of crucial importance to perform in algo-trading

📍 LET THE ALGOS RUN FOR AT LEAST A MONTH 

📍 Only monitor the LONG RUN KEY METRICS OF THE SIGNAL (Drawdown and average monthly returns) to decide about it





I am sharing here the behaviour of a client that has bought the product on the 16th of July.

◼️ 16th of July launch on a $1000 account 

◽ gets immediately 2 negative trades -$34 (-3% DD) get scared; stops the EA; (starts complaining about the performance after 2 trades ...)

◽ IMPORTANT: would had he launched it on the 15th of July, he would have been immediately positive by +$26 and would probably would not have cut it ... then

◽ but he did cut it, so he did not benefit from the coming positive trades


◼️ waits for another "really positive" wins to decide "to give it another try"

◼️ these positive trade (Streak of Wins) come on the 28th of July and 30th ( + $200 of gains = +20% growth)

◼️ relaunches the EA (probably on a demo account) and enter a streak of Losses (-1% Drawdown...) 

(see picture with green outlining of his reported trades on the right. The Signal's trades are on the left outlined in blue)

 because he stopped the EA, he did not benefit from the last streak of Wins that would have given him a + 8,6% (see picture with blue outlining below the green ones)

 gets even more frustrated and unfoundedly delusional about the EA

This is exactly what NOT TO DO.

👉 hadn't he stopped the EA he would be positive by now

👉 had he launch it on the 17th, he would be positive by +7,6% (date of launch has an impact in the first months of course)


🔹 Key Takeaways

-----------------------

1. Do NOT ALGO-TRADE WITH YOUR EMOTIONS or you will reproduce exactly the same mistakes than in manual trading and be sure not to be profitable.

2. Only monitor the LONG RUN KEY METRICS OF THE SIGNAL (Drawdown and average monthly returns) to decide about it

3. If you want to minimize the emotional impact of a launch, LAUNCH AFTER A STREAK OF LOSSES of the Signal so that you maximize the probabilities to starting with WINS.

4. Implement the RECOMMENDED SETTINGS, to mirror exactly our metrics and allow good monitoring.


Hope this helps, staying at your disposal

Chris


☝️ Please check our indicators and algos