In search of algo that works well with 1:50 leverage
- Need help for Trading broker for USA Residents
- MT4 1:50 Leverage - Expert how to search?
- Market theory
Please consider which section is most appropriate — https://www.mql5.com/en/forum/172166/page6#comment_49114893
Please note that discussions, recommendations or suggestions for Market products or signals are not allowed on the forum . You can however openly discuss EAs from CodeBase publications or Articles.
Properly implemented algorithmic trading strategies are not specific to any account leverage or margin requirements. You probably had the misfortune of using EAs that were very badly implemented. Properly implemented strategies, consider the stop size when calculating the position size, as well as the margin requirements and leverage and adjust accordingly.
When researching EAs, test them in the Strategy Tester with different levels of leverage or margin requirements and see if they properly adapt or not.
1:50 leverage is realistic and viable long term 500:1 is not ,So any algo claiming you need 500:1 is Wild West Martingale etc . So first don't be greedy and second stay away from Martingale and Grid algos which account for a high percentage of algos .
Well said. Wild West high profit = Wild West high risk. When selecting an algo, look for low drawdown and a steady account growth graph that you could draw with a carpenter's speed square: 📐 (flip it horizontally).
If no backtest/live report is posted... Next.
Please note that discussions, recommendations or suggestions for Market products or signals are not allowed on the forum . You can however openly discuss EAs from CodeBase publications or Articles.
Properly implemented algorithmic trading strategies are not specific to any account leverage or margin requirements. You probably had the misfortune of using EAs that were very badly implemented. Properly implemented strategies, consider the stop size when calculating the position size, as well as the margin requirements and leverage and adjust accordingly.
When researching EAs, test them in the Strategy Tester with different levels of leverage or margin requirements and see if they properly adapt or not.
1:50 leverage is realistic and viable long term 500:1 is not ,So any algo claiming you need 500:1 is Wild West Martingale etc . So first don't be greedy and second stay away from Martingale and Grid algos which account for a high percentage of algos .
I have gotten a little frustrated with a lot of false starts. I was thinking of putting a request in freelance to pay for mt5 bot recommendations.
This sounds a bit extreme to me. Personally, I would not pay a guru to direct me to a bot... to pay for. Frustration can quickly turn into desperation.
I should look at the results that are posted of the live signals?
In the Signals, you can view the Reliability and the number of subscribers of each Signal and then drill down into the Reviews of each. IMHO, the Reviews are where the rubber meets the road and consistently positive Reviews are rare. But then, profitable traders are rare--so their profitable bots and signals exhibit the same rarity.
IMHO, you are likely in a stage of progression that I found myself in many years ago. As you already appear to be interested in automated trading, I would encourage you to start coding simple EA's that use indicators that you have or can get--using the iCustom() function. Before you know it, you'll be able to run your own profitability tests in MT5's Strategy Tester.
This sounds a bit extreme to me. Personally, I would not pay a guru to direct me to a bot... to pay for. Frustration can quickly turn into desperation.
In the Signals, you can view the Reliability and the number of subscribers of each Signal and then drill down into the Reviews of each. IMHO, the Reviews are where the rubber meets the road and consistently positive Reviews are rare. But then, profitable traders are rare--so their profitable bots and signals exhibit the same rarity.
IMHO, you are likely in a stage of progression that I found myself in many years ago. As you already appear to be interested in automated trading, I would encourage you to start coding simple EA's that use indicators that you have or can get--using the iCustom() function. Before you know it, you'll be able to run your own profitability tests in MT5's Strategy Tester.
Hey. Yes, I’ve been using Ai to code algos for a while, now. I’ve also paid people to make one for me before Ai got good enough. I just want something that is going to work. Lately I have been working on a strategy to exploit the post earnings announcement drift, but haven’t found a way for it to work real well, yet. I’m using python anywhere and fmp for data. I’ve also got a mildly successful one rated by the strategy tester on TradingView, but translating it for kraken data isn’t working real well. Basically, I’m in a state of doubting that this could work at all after working on it for a while and am kind of throwing a Hail Mary by posting here. Even if you could tell me this actually works it would be helpful. I bought a bot from here in 2022 that promised 100% annual return, but only gave 10% due to 1:50. Idk. I don’t need a guru, I just need a decent clue
I'm actually a 100% technical and 100% automated trader. I do not attempt to quantify news events because I don't see a need for doing so. Although I write my own EA code, a full list of credits to everyone in this Forum from which I have adapted code (learned) would be as lengthy as my code. I trade Futures and FX. My US FX account carries from 1:50 to 1:20 leverage for majors and crosses, respectively. Futures leverage is far less and variable by contract and intraday.
IMHO, a 10% annual return is lightyears ahead of the average trader who's in the red, yet not quite supreme. The consensus around here from experienced traders seems to be that a 20% annual return is perfectly reasonable for a strategy that doesn't risk ruin. The best 100% technical fully automated EA's that I've coded return 22 to 23%. Although I continually seek to improve that number, it certainly appears to be my de facto ROI cap at the moment (this excludes automated progressive lot sizing which I have not yet sufficiently tested).
So yes, you could say that trading US FX requires sufficient capital in order to earn large profits. Based my own EA stats, increasing leverage could increase my short-term profits but would ultimately blow up my account due to increased losses. I guess that the moral of the story is that while a strategy could potentially be designed for a high leverage environment, seeking high leverage solely due to lack of trading capital would be a big mistake.
I certainly have never seen a strategy that returns 100% annual ROI without a serious risk of ruin.
We all know that the average retail trader has a small amount of trading capital. IMHO, most of the retail trading industry is focused on the average retail trader. This causes me to think critically about high leverage brokers and the state of most EA's and Signals for sale and the ROI that they claim. Are those industry services and products geared toward trading financial markets, or selling in retail sales markets?
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