New article Andrey Voitenko: Programming errors cost me $15,000 (ATC 2010) is published:
Andrey Voitenko is participating in the Automated Trading Championship for the first time, but his Expert Advisor is showing mature trading. For already several weeks Andrey's Expert Advisors has been listed in the top ten and seems to be continuing his positive performance. In this interview Andrey is telling about his EA's features, errors and the price they cost him.
On what principles does your Expert Advisor trade?
The work of my EA is based on the breakdown of the horizontal channel.
First the levels of the channel are calculated on the basis of the
minimum and maximum prices over a period of five-minute bars. If the
price goes deep into the channel, two pending orders are placed on its
borders. Then only wait for activation of one of them and fix the profit
or loss. This system works well on the periods when the market moves
from the area of low-volatility to the high volatility area. The choice
of a five-minute period was made during the test optimization - I wanted
my EA to trade quite actively.
I can also tell you about mistakes made in my Expert Advisor. I've
already heard several times, from different people about one of them,
which is though not a real bug, but rather a non-standard implementation
of a trailing stop. Because of invalid conditions in the EAs code SL is
immediately trailed too close to the market, and this prevents the EA
from holding the position and fixing profits. I've corrected this part
and published on my site the second version of the Expert Advisor with the implementation of the classical trailing stop. My frivolous
experiments with trailing stop cost me the prize position in the
If not this, at this point I would receive an increase in the balance
equal to $15,000 and would be in the third place, and hence could expect
the cash prize in this Championship. So I bitterly admit that the
programming errors cost me $15,000. This will be a serious lesson for