Zarinsky Investment System 4

I have been in the quant industry for many years, designing various high-frequency quant models and different low-frequency strategies. I have delved into the research of over a thousand EAs, and I can responsibly say that 90% of the EAs in the market cannot achieve long-term profitability and may even result in substantial losses.

I have selected models I previously designed, as well as combined several EA strategies I believe can be profitable, to re-adjust and design this system.

It targets an annualized return of approximately 150% with a maximum drawdown of around 20%.

This strategy focuses on trading the volatility of GBPCAD, GBPAUD, and EURSGD in small timeframes, employing stop-loss and take-profit mechanisms, without adding to positions or averaging down. On average, there's one trade per day, ensuring stable growth with no risk of blowing the account.

1. Trades are determined by market conditions; there might be days with no trades and others with multiple trades, depending on market volatility.

2. The ideal EA's equity curve often fluctuates up and down, while some strategies show a straight line but tend to regress to zero eventually.

3. Don't approach trading with a get-rich-quick mentality. A good EA won't necessarily generate profits every day; each EA has its most suitable market conditions. It might break even or make small profits in 80% of market conditions and experience rapid gains in the remaining 20%. Enduring the hardships of the 80% leads to the rewards of the 20%.

4. Embrace a conservative investment mindset, pursuing reasonable long-term stable returns. Reject reliance on luck, avoiding strategies that don't use stop-losses or engage in averaging down, as they carry significant hidden risks. Use stop-losses to secure profits and strive for stable long-term returns through continuous stop-loss and take-profit actions.

5. Just like manual trading requires the right mindset, using an EA demands the same. Using an EA is akin to gardening; the more you fuss over it, the less it grows because you become impatient with the slow process. When you stop fixating on it, it grows without you realizing it. Foster the correct investment mindset and avoid impatience.

6. Slow = Fast: Consistent growth indicates manageable risk, meaning slow equals fast.

7. Fast = Margin Call: Uncontrollable risk leads to blowing up the account, equating fast with a margin call.