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Something Interesting - page 4

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Sergey Golubev
Moderator
103277
Sergey Golubev  

This is very interesting scalping EA: Angry Bird (Scalping) - expert for MetaTrader 4

Some people say that this EA looks like 'modified Ilan1.6' in trading but with more secure features concerning deposit and so on and having the following:

  • MaxTrades parameter (how many simultanious trades can be opened),
  • LotExponent: this is lot multiplier for martingale (I prefer 1.4 instead of default 2.0 for example),
  • TakeProfit in points (in case of 5 digit price which as 1.09635 so TakeProfit = 20 is 2 pips),
  • UseEquityStop parameter to stop trading with TotalEquityRisk (TotalEquityRisk = 20 by default),
  • UseTimeOut: close all the trades after MaxTradeOpenHours (I prefer to use UseTimeOut - I mean: EA will close all the trades after MaxTradeOpenHours = 5 hours).

This is the description from the author:

It is EA with features that are very sensitive to movement is equipped with other features including:

  • Equity stop;
  • Tralling Stop;
  • Equity Risk Management;
  • Time Out Use;
  • Max Trade open Hours and others.

Rule: Use Pair With Minimal spreads, one I use EUR / USD With Time Frame 1 Minute.


This is backtesting for 4 days till now with minimal/minimum risk for deposit:

Files:
Francis Dogbe
9883
Francis Dogbe  
isn't martingale dangerous?
Sergey Golubev
Moderator
103277
Sergey Golubev  
Francis Dogbe:
isn't martingale dangerous?

Forum on trading, automated trading systems and testing trading strategies

Something Interesting in Financial Video July 2013

Sergey Golubev, 2013.07.26 07:24

49. Trading The Martingale and Anti Martingale Strategies

In our last lesson we looked at how most traders pick a standard amount to trade per certain amount of equity in their account and how this probably isn't the best way to maximize profits and minimize losses of a potential strategy. In today's lesson we are going to look at the two categories that most position sizing strategies fall into which are known as martingale strategies and anti martingale strategies.

A position sizing strategy which incorporates the martingale technique is basically any strategy which increases the trade size as a trade moves against the trader or after a losing trade. On the flip side a position sizing strategy which incorporates the anti martingale technique is basically any strategy which increases the trade size as the trade moves in the traders favor or after a winning trade.

The most basic martingale strategy is one in which the trader trades a set position size at the beginning of his trading strategy and then double's the size of his trades after each unprofitable trade, returning back to the original position size only after a profitable trade. Using this strategy no matter how large the string of losing trades a trader faces, on the next winning trade they will make up all their losses plus a profit equal to the profit on their original trade size.

As an example lets say that a trader is using a strategy on the full size EUR/USD Forex contract that takes profits and losses both at the 200 point level (I like using the EUR/USD Forex contract because it has a fixed point value of $1 per contract for mini forex contracts and $10 per contract for full sized contracts but the example is the same for any instrument)

The trader starts with $100,000 in his account and decides that his starting position size will be 3 contracts (300,000) and that he will use the basic martingale strategy to place his trades. Using the below 10 trades here is how it would work.

As you can see from the example although the trader was down significantly going into the 10th trade, as the 10th trade was profitable he made up all the his losses plus a brought the account profitable by the equity high of the account plus original profit target of $6000.

At first glance the above method can seem very sound and people often point to their perception that the chances of having a winning trade increase after a string of loosing trades. Mathematically however the large majority of strategies work like flipping a coin, in that the chances of having a profitable trade on the next trade is completely independent of how many profitable or unprofitable trades one has leading up to that trade. As when flipping a coin no matter how many times you flip heads the chances of flipping tails on the next flip of the coin are still 50/50.

The second problem with this method is that it requires an unlimited amount of money to ensure success. Looking at our trade example again but replacing the last trade with another loosing trade instead of a winner, you can see that the trader is now in a position where, at the normal $1000 per contract margin level required, he does not have enough money in his account to put up the necessary margin which is required to initiate the next 48 contract position

So while the pure martingale strategy and variations of it can produce successful results for extended periods of time, as I hope the above shows, odds are that it will eventually end up in blowing ones account completely.

With this in mind the large majority of successful traders that I have seen follow anti martingale strategies which increase size when trades are profitable, never when unprofitable, and these are the methods which I will be covering starting in tomorrow's lesson.




Sergey Golubev
Moderator
103277
Sergey Golubev  
Sergey Golubev:

This is very interesting scalping EA: Angry Bird (Scalping) - expert for MetaTrader 4

Some people say that this EA looks like 'modified Ilan1.6' in trading but with more secure features concerning deposit and so on and having the following:

  • MaxTrades parameter (how many simultanious trades can be opened),
  • LotExponent: this is lot multiplier for martingale (I prefer 1.4 instead of default 2.0 for example),
  • TakeProfit in points (in case of 5 digit price which as 1.09635 so TakeProfit = 20 is 2 pips),
  • UseEquityStop parameter to stop trading with TotalEquityRisk (TotalEquityRisk = 20 by default),
  • UseTimeOut: close all the trades after MaxTradeOpenHours (I prefer to use UseTimeOut - I mean: EA will close all the trades after MaxTradeOpenHours = 5 hours).


I traded it on demo today for EURUSD M1 timeframe and USDCHF M1 timeframe. I used LotExponent = 1.4; UseEquityStop = true; UseTimeOut = true with MaxTradeOpenHours = 3 (other settings are by default). The statement is attached in zip file.


Do not use this EA during (and immediate before - immediate after) medium/high impacted news events!

Files:
Sergey Golubev
Moderator
103277
Sergey Golubev  

Murrey EA - expert for MetaTrader 4

This Expert Advisor is based on Murrey lines, Stochastic oscillator, Candles, Bollinger Bands.

Recommendations:
  • I. 5 digits pair
  • II. Best timeframes: M15,M30,H1,H4
  • III. Please follow the trend before running EA , you can disable buy by setting. Enable Buy :false , you can disable sell by setting Enable Sell:false

So EA will work good when you take a look at the trend and follow only the trend, disable Short or Long.

Money management

Do not risk, because minimum timeframe to EA to work good is M15.

Francis Dogbe
9883
Francis Dogbe  
Sergey Golubev:

Murrey EA - expert for MetaTrader 4

This Expert Advisor is based on Murrey lines, Stochastic oscillator, Candles, Bollinger Bands.

very interesting.
Sergey Golubev
Moderator
103277
Sergey Golubev  

This is interesting indicator coded for MT4 and for MT5 - Hodrick Prescott:




By the way, one of the coder (who coded and placed his version on CodeBase - see links above) is suggesting to use this indicator for scalping on open bar for M1 timeframe.

Francis Dogbe
9883
Francis Dogbe  

Something interesting

 

Files:
Sergey Golubev
Moderator
103277
Sergey Golubev  

The interesting EA found: Ketty - expert for MetaTrader 4

This EA is based on the book which was written by Kathy Lien :


Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings :

The coder suggested to use it on GBPUSD M15 timeframe:


About Me | Kathy Lien
About Me | Kathy Lien
  • kathylien.com
Kathy Lien is an Internationally Published Author and Managing Director of BK Asset Management. Her trading books include the following: As Managing Director of BK Asset Management, Kathy is responsible for portfolio management, research and analysis. She also runs an FX Signal Service BKForex, with Boris Schlossberg – one of the few investment...
Francis Dogbe
9883
Francis Dogbe  
Sergey Golubev:

The interesting EA found: Ketty - expert for MetaTrader 4

This EA is based on the book which was written by Kathy Lien :


Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings :

The coder suggested to use it on GBPUSD M15 timeframe:


why not EURUSD which is very liquid?
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