Discussion of article "Reversing: Reducing maximum drawdown and testing other markets"
Interesting articles thanks for sharing.
What if you keep your loosing trades open instead of having stop losses? and your EA close everything once break even reached? I'm not sure but I imagine that it gives you more margin and therefor more attempts.
What if you keep your loosing trades open instead of having stop losses? and your EA close everything once break even reached? I'm not sure but I imagine that it gives you more margin and therefor more attempts.
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New article Reversing: Reducing maximum drawdown and testing other markets has been published:
In this article, we continue to dwell on reversing techniques. We will try to reduce the maximum balance drawdown till an acceptable level for the instruments considered earlier. We will see if the measures will reduce the profit. We will also check how the reversing method performs on other markets, including stock, commodity, index, ETF and agricultural markets. Attention, the article contains a lot of images!
In the previous article, we analyzed the reversing strategy. We tested the strategy on two Forex instruments. We also tried to use different indicators to improve the system performance.
As a result, we found out that the reversing strategy can work with an average annual yield of about 50%. But this is a high-risk strategy, because maximum drawdowns could exceed the initial deposit amount. With the initial deposit of 10,000 dollars, the maximum drawdowns on the analyzed financial instruments reached 12,000-15,000 dollars with any indicators. Can this variable be improved? How will the taken measures affect the strategy profitability? This will be the subject of the first part of this article.
After dealing with this issue, we will move on to the second subject — we will try to trade various financial instruments in addition to Forex symbols. We will try to find out, which market is the most optimal for this trading strategy. Are there any considerable differences in reversing trading in different markets.
In all tests within the article, we will use the M15 timeframe and the maximum number of steps in a chain set to 8. The reasons for choosing these parameter values were described in the previous article.
Author: Roman Klymenko