Inverse copy

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Have you ever tried to make inverse copy from a loss-maker advisor, did it work?

Share your experience.

 

it doesn't necessarily work because its loss may be due to other trading costs instead of wrong direction, 

for example, spread/slippage/commission/swap etc 

 
Pak Hong Poon:

it doesn't necessarily work because its loss may be due to other trading costs instead of wrong direction, 

for example, spread/slippage/commission/swap etc 

Yes, I know. But I've made about 500 advisors, maybe some of them could be so bad to try this.

 
David Diez:

Yes, I know. But I've made about 500 advisors, maybe some of them could be so bad to try this.

i think if the profit factor is <0.3 on backtest with 2 point spread, it may work reversing it, but do you have such EA

 
Pak Hong Poon:

i think if the profit factor is <0.3 on backtest with 2 point spread, it may work reversing it, but do you have such EA

Horrible PF, no.

 
David Diez:

Horrible PF, no.

what? then reverse it and it will be good. do you understand what i am saying

 

If always buying is a loosing strategy, is always selling a winning one?

Markets move both directions, and you pay the spread either way.

If reversing a strategy was guaranteed, everyone would be rich.

 
Pak Hong Poon:

what? then reverse it and it will be good. do you understand what i am saying

William Roeder:

If always buying is a loosing strategy, is always selling a winning one?

Markets move both directions, and you pay the spread either way.

If reversing a strategy was guaranteed, everyone would be rich.

I'm working into a new advisor which can loose -15% on friday deals... what a business, don't you think?

 
If the EA is using certain type of money manage, inverse won't change the nature of the EA. Basically because if the EA is losing due certain conditions in the market (where the money manage fails), similar conditions will be found in the contrary direction.

If the EA is using only SL and TP, then if you have a losing EA somewhere (like during some specific months) when you inverse, you will have indeed a profitable EA. However, during some other specific months, where your original EA would have made profit, this one will lose, so you will end up with similar lossing results overall.

In all cases, we can't really know without testing; sometimes it worth to try to reverse the EA. For instance, I have one EA which is working great in the major pairs, but for the minor pairs it's working better if the logic is reversed.
 
Ramon Sobrevals Arce:
If the EA is using certain type of money manage, inverse won't change the nature of the EA. Basically because if the EA is losing due certain conditions in the market (where the money manage fails), similar conditions will be found in the contrary direction.

If the EA is using only SL and TP, then if you have a losing EA somewhere (like during some specific months) when you inverse, you will have indeed a profitable EA. However, during some other specific months, where your original EA would have made profit, this one will lose, so you will end up with similar lossing results overall.

In all cases, we can't really know without testing; sometimes it worth to try to reverse the EA. For instance, I have one EA which is working great in the major pairs, but for the minor pairs it's working better if the logic is reversed.

Congratulations for your profitable advisor.

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