Model test - page 2
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If you can make money on IBFX, you can double your profits just by going to an ECN where they have much more favorable spreads. That is one of the reason that most scalpers require low spreads to be profitable, and you won't find them on MT4 bucketshops. You are trying to exploit very tiny moves that can last a few seconds. And if you don't close out in that few seconds while you are in profit, then you lose that profit. That is the very nature of the term scalping. I think your strategy is not really a scalper. It's more of a volatility trap using multiple trades, perhaps using pyramiding logic / hedging.
And the funny thing about sizing grids, it will ultimately lead you to RR ratio. Sooner or later, you will see the power of just increasing the reward to risk ratio that will add to the bottom line because you eliminate the intermediate spread costs, so you are basically saying, I will hold on longer for a higher target. Then the evolution begins of trend following because that exactly what it is, following trend with large tp and small sl, which is the point I'm at, and been at for awhile now. Some might say I'm stuck here...which can be seens as a good thing or bad thing.
Anyways, that's about as much as I'm going to say because maybe my own limitations is preventing myself from finding a scalper. And I should not continue with this line of thinking and discourage you from your own quests for glory. As we are all just learning and adapting to the market.
12-8-08 (EA Test 2)
Ok, here's the deal...
For reasons that are too lengthy to discuss here, I have made the following changes to the logic of the EA.
1. No more floating positions. Orders will be stopped out, and doubled per each losing trade.
2. The EA will "isolate" specific occurrences based on price action. Market randomness is still the philosophy; however, I wanted to exploit the "what is not likely to happen" methodology with this PA isolation process.
3. Lot sizes have been increased to make up for less frequent trade placement.
That's it for now. 1st day's statement attached.
MM
12-9-08
I need a nice 200 to 300 pip bust out move. This EA loves ranges... of course I'm interested in seeing how it handles itself in situations that it doesn't love.
Some of the back testing results over the weekend were interesting, but otherwise, useless. We'll see what happens tomorrow.
Cumulative statement attached.
MM
I think this version might have a higher chance of survival, Mr. M. Looks like there are some dips, which are good indications of a robust system. Good luck.
Thanks, Kenny.
We'll see how it develops.
12-10-08
Moving right along...
^ Nothing wrong with trading on the daily. It is probably one of the most profitable and consistent timeframes to trade on. But you need a lot of patience, and stomach for drawdown. And I love trends as well.
Most traders want to move to lower timeframe to increase their opportunity to compound. They want a lot of action and speed. And minimize drawdown.
12-11-08
Today was an excellent day to observe the strategy in action. The profits from yesterday were completely wiped out, then regained, and wiped out again... and then some. This is good for a number of reasons, most importantly because it showed me the potential of what I can expect. I will stop trading the current configuration for this week, and do as I did after last week's debacle. I will slightly rework a few things that will prevent a "today" from happening in the future. Steps to be implemented for next weeks run.
1. Divide single orders into smaller multiple units. This will avoid reaching the "MAX ALLOWED CONTRACT" limit with the broker. The way the EA is set-up now allows for 4 entry attempts. The fact that the set-up fails 4 times in a row is a rarity... but obviously not rare enough as it occurred twice today. Coincidently, both scenarios were cleared on the 5th attempts. I'll see to it that the failure of the set up can go as high as 7 to 8 failures in a row. This would be one of the "not likely to happen" situations I'm attempting to exploit with this methodology.
2. I will allow a 2 way (buy/sell) function which should limit draw downs, and pull more coin out of the price action. In other words, the EA will place orders independent of any other orders being open.
The results of next week's implementation will dictate any future changes. If for some reason the market goes bat shit crazy, I already have an alternate approach ready to go. But first things first...