Trading Systems: Non-standard Automated Trading

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New article Non-standard Automated Trading has been published:

Successful and comfortable trading using MT4 platform without detailed market analysis - is it possible? Can such trading be implemented in practice? I suppose, yes. Especially in terms of the automated trading!

Non-standard Automated System

Suppose we have some automated trading system of a profit kind. The system meets the following requirements:

  1. Entry signals are practically random.
  2. The system is constantly in the market, i.e. it operates with counter-directed positions instead of stops - it is important.
  3. Using several static parameters, located at the entrance, we optimize the system, in order to get a maximal profit with a reasonable drawdown.

Practically this system will give annual profit +3000 points even without Money Management block. After that we enable this system in a reverse mode. In other words now it will operate the following way:

  1. If we were buying in a direct mode, now we will be selling and vice versa. After that we once again optimize the system using static parameters. And at the exit of the reverse version we get the maximal profit with reasonable drawdown. It should not cause any problems, because our automated trading system is originally built on random entries.
  2. After that we simultaneously start both versions - direct and reverse. The simultaneous operation of both versions is a very important, key moment of the described trading system!

Let us see what we have.

Author: Leonid Borsky

 

Several comments/questions:

  1. If I count properly both direct and reverse EA shifted ballance from 10,000 to 276, 384 within 2.5 year (30 months). It means monthly growth on level 11.7% => 337% for year. Quite impressive...
  2. Both EAs should be implemented as single program... Or using the same magic numbers should work simultanously on 2 MT4 terminals... Which approach is more efficient/suitable/proper?
  3. Both EAs have to use the same indicator. In sample AC indicator was chosen. But in fact any other could be used or its composition driven via perceptron, am I right?
  4. Number of inputs to perceptron was arbitrary set to 4, but any other value (rather greater than lower) can be chosen?
  5. 4 values of AC indicator from 0 with step 7 was chosen. Is step 7 important in any case or was chosen arbitrary also?

Sorry for being annoying, but I'm new in forex and EA...

Best regards,

LesioS

 
How did you backtest your EAs? With downloaded charts and simulated ticks?

I have experimented with direct and reverse strategies a lot, and I learnt the following: hedge trades don't really work on Forex. If you open a 1 lot buy and a 1 lot buy, you did nothing, but paid for spread the two will cancel each other out. If you have an opened buy and you opened a sell, it is the same as closing your buy. If you have an opened buy and an opened sell and you close your sell earlier than your buy, it is the same as opening a buy at that time. What matters is the pricemovement under which there was an imbalance in the number of opposing trades. What I want to say here: everything that can be with two or more opposing trades can be made with one trade too, which way spread will be half. So I am a bit unbelieving here.
 
As I properly understood the main idea, it's not hegding. Direct and revers EA works on different magic numbers, so they don't interfere each other. They both work on their own orders and buy & sell indepenently.
 

Ok the

- Reverse version is posted above.

- The direct version is at 'AI'

 

I like the idea of direct and reverse. The reason being that no stop loss is used.

But to acheive that I assume that you use two currency pairs. Not one.

That is, one currency pair for direct and a different pair for reverse.

So first you open a direct buy and when in -50 pips(let's say) you open a sell on the other pair.

When do you take profit? When the total profit of both is $150(lets say)?

Please reply

Regards

Andreas

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