New article Developing a self-adapting algorithm (Part II): Improving efficiency has been published:
In this article, I will continue the development of the topic by improving the flexibility of the previously created algorithm. The algorithm became more stable with an increase in the number of candles in the analysis window or with an increase in the threshold percentage of the overweight of falling or growing candles. I had to make a compromise and set a larger sample size for analysis or a larger percentage of the prevailing candle excess.
The article describes only the most basic and interesting modifications and operating modes. In reality, much more has been implemented, and all modes can be combined with each other. The requirements specification for the algorithm with all the details is attached below.
I am going to run the tests on the same currency pairs I used to test the first version of the algorithm in order to visually highlight the differences. Like the first version, this algorithm works by closing candles, so you can safely test it in the "control points" mode. Inside the candle, it only controls the current profit and makes sure that the current funds do not fall below the threshold value defined in the settings. As before, the tests will be carried out with an overestimated spread. I will set a spread of 40 for GBPUSD.
Like in the first algorithm version, we can trade and optimize any timeframe. The minimum timeframe is limited by the size of candles relative to spreads and commissions. The lesser the timeframe, the higher the requirements to the signal quality and expected payoff. As the timeframe increases, the size of the candles grows and, accordingly, the drawdown level rises as well. Therefore, the maximum timeframe is limited by trading style preferences.
I have performed optimization in 2017 when using the robot for trading on real accounts. Therefore, I simply took the previous settings without performing a new optimization.
Figure 7. GBPUSD H1 2000.01.01 - 2020.12.08, static lot
Author: Maxim Romanov
Very Very Educative! Looking forward for the next article! Thank You!
Very very interesting article. I follow you from very long time.
Concerning this article, I have just a problem to use your mql4 EA and test it. It doesn't work on my mt4 platform. Is it normal or need I do anything before?
ps: I am waiting for your next article too!!! Exciting
Strange, everything should work. What specifically does not work for you? Does the advisor compile?
Ok, my fault. I need to compile it before. Sorry Maxim. Thanks a lot! When your next article will be online?
Great article, full of information and also eye opening how to simple trade without indicators by just using mathematical approach.
Highly appreciate your hard work Maxim! Not easy to compile the data and do the calculation, then do the back test with old MT4 terminal.
Thank you very much for the very helpful article series.
I have tried the included robot, but it only opens positions on GBPUSD in tester, regardless of what I select for the option "Only one Symb". Am I doing something wrong, or is there a bug?
in the tester, it will work only for 1 trading instrument, for the one specified first. This is a limitation of the MT4 tester
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