THE 2007 TRADING CHAMPIONSHIP! - page 6
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And I don't think a 50% margin call is going to stop the developers of reckless EAs.
Who will stop them from opening with 5-10 lots from the start?
This Expert Advisor finished the championship in 16 hours. And if the margin call had been 50%, he would have just finished it even earlier.
In that case, as © M.M. Zhvanetsky used to say: "One wrong move and you're the father". :)
You have answered your own question with your own phrase, marked in bold - an insane expert with insanely risky logic will close at the start from the slightest candle. So that's fine.
In this Championship, we practically did not assess the trading efficiency of the experts at the entry checkout, but only checked if they met the formal requirements. In the next competition, we will focus on the preliminary trade efficiency evaluation (conditions will be described in detail in the rules at the appropriate time) and weed out those Expert Advisors that are outright weak or stupid.
We are not going to accept blatantly unsuccessful EAs.
And I don't think a 50% margin call is going to stop the developers of reckless EAs.
Who's going to stop them from opening with 5-10 lots from the start?
This EA finished the championship in 16 hours. And if the margin call had been 50%, he would have just finished it even earlier.
In that case, as M.M. Zhvanetsky said © M.M. "One wrong move and you're a father". :)
You have answered your own question with your own phrase, marked in bold - an insane expert with insanely risky logic will close at the start from the slightest candle. So that's fine.
This expert was unlucky. What if he had been lucky?
How to exclude the aggressive lucky ones, and leave the really working EAs? That's the question.
How about binding the maximum open trade to the current AccountFreeMargin and removing the 5 lots limit? Set the maximum risk, so to speak? I do not know if it is possible to control the Risk during the Championship by the Organizer?
A related question. What was the margin call on the previous championship?
That expert was unlucky. What if it had been lucky ?
How to exclude the aggressive lucky ones, and leave the really working experts? That's the question.
Related question. What was the margin call at the last championship?
"Bad luck" for the expert who takes unnecessary risks. And it's not a question of luck, but of safety. Investors are also interested in experts who do not show "tricks", but can be practically applied. For this purpose it is suggested to use one qualitative criterion - to raise the margin call closing percentage to 50-70%. This is higher than in real brokerage companies, but in this way this level will provide a guarantee against insane experts "on the brink of a foul".
Standard margin call for most brokerage companies is 20%. Probably, it was so at the Championship. This can be checked on the transaction history of any participant who closed on margin call.
That expert was unlucky. And if he was lucky ?
How to exclude the aggressive lucky, and leave the really working experts? That is the question.
Related question. What was the margin call at the last championship?
"Bad luck" for the expert who takes unnecessary risks. And it's not a question of luck, it's a question of safety. Investors are also interested in experts who do not show "tricks" but can be practically applied. For this purpose it is suggested to use one qualitative criterion - to raise the margin call closing percentage to 50-70%. This is higher than in real DTs, but in this way this level and will provide a guarantee against crazy experts "on the brink of a foul". Generally speaking, even a slippage below 100% is considered bad form, it is already an alarming sign if the Expert Advisor has been sitting in this pool for a long period.
The standard margin call for most brokerage companies is 20%. Probably, it was like this during the Championship. This can be checked on the transaction history of any participant who closed on margin call.
30% or 50% is a small difference.
So, how about a Risk limit instead of 5 lots and 3 trades?
And is it realistic to trace the Risk limit from the organizers?
When investing the same amount of money in trades by different EAs, only smart EAs will win. There will be added flexibility in distributing trades and funds both on one currency pair and in portfolio trading.
30% or 50% is a small difference.
So, how about a Risk limit instead of 5 lots and 3 trades?
And is it realistic to trace the Risk limit from the organizers?
When investing the same amount of money in trades by different EAs, only smart EAs will win. There will be added flexibility in distributing trades and funds both on one currency pair and in portfolio trading.
Equiti - there is real money in the account and depending on it we can risk a certain amount (% of Equiti).
For example, Alpari used the following algorithm: there is no limit to the lot size, within the allowed margin, the account balance still grows, (of course, for profitable positions). Regardless of how many lots you trade, the result of the trade (the calculated nP ratio) will be the same.
For this purpose the nP-coefficient, which characterizes the "quality" of deals for all executed trades, is calculated. The only thing that this approach does not suit (pardon the tautology) to the MTS contest is the limitation of Alpari on the number of positions for one instrument: only one position for one instrument at a time is allowed, which, of course, limits the number of strategies and experts working on them.
If we would overcome this drawback, everybody would be satisfied: both organizers, who need to show their MTS capabilities to gain Max profit, and traders, who need to show "quality" of their MTS (Expert Advisor) to real customers, and real investors, who can choose: if they want to get Max profit - take a risk, if they want to get a small but guaranteed profit - choose a stable Expert Advisor.
For example, calculation of nP coefficient for the first ten winners:
Participant nP-ratio
Rich 14666. 09
Idamiani 6896. 40
Godzilla 8639. 23
Valvk 4783.10.
Hendrick 2482. 31
bvpbvp 1647.20
Flame 7030. 92
Berserk 5354. 40
vgc 7107, 30
RobinHood 1408.80
Once again I would like to draw your attention that nP is calculated for one position for a symbol at a certain moment of time. An Expert Advisor may have three open positions for one instrument at a time. This means that three open and close positions of 1 lot at a time (like Rich) will give three times more nP than one open and close position of 3 lots.
With limited risk, there is still the sense and desire to capitalise funds, which is naturally closer to real trading, as well as investor interest. With capitalisation the capital grows exponentially. However, the calculation of the nP coefficients is not for investors. It is also not suitable for advertising. It is another matter, for example, when it is said that with 10% risk of equity it made $20000 from $1000 in three months; here it may be of interest to anybody.
At initial $10000 a margin call even at 100% at 5 lots allows to lose $5000, i.e. 50% of deposit! And the price will move just 100 points in your direction. Here any investor will turn away from you. In addition, not every investor understands what a margin call is and how it is calculated.