Ubzen's FREE EA Project#1 - page 3

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At this point, I'll like to switch gears for a moment. Apparently, getting folks to provide buy-sell signals on a public it's like pulling teeth. So I've decided to provide the algorithm myself; well actually, the algorithms will be coming from a generous Site I found a long time ago. This site might be helpful to forex-newbies looking for strategies.

Well, seeing how hard its been to get people to provide signals here, one might ask, why are there so many strategies on that site. And the answer is more than likely because "the strategies are Not gold-mines". But I see this as a golden opportunity to either Validate my MM or Validate some strategies.

I'll start with the strategies in the Advanced section of the site or the strategies which are well Explained. Because this is mql4.com I'll also see if I can dump some codes into this thread :). However, I must warn, I'm Not the world's strongest coder.

Added: Ok, after looking, I've decided on going with This strategy.

 
ubzen:

At this point, I'll like to switch gears for a moment. Apparently, getting folks to provide buy-sell signals on a public it's like pulling teeth. So I've decided to provide the algorithm myself; well actually, the algorithms will be coming from a generous Site I found a long time ago. This site might be helpful to forex-newbies looking for strategies.

Well, seeing how hard its been to get people to provide signals here, one might ask, why are there so many strategies on that site. And the answer is more than likely because "the strategies are Not gold-mines". But I see this as a golden opportunity to either Validate my MM or Validate some strategies.

I'll start with the strategies in the Advanced section of the site or the strategies which are well Explained. Because this is mql4.com I'll also see if I can dump some codes into this thread :). However, I must warn, I'm Not the world's strongest coder.

Added: Ok, after looking, I've decided on going with This strategy.


how you making out with the new strategy?
 
It was a total fiasco. I'm not so convenience of the Universal Money-Management approach as intended within this topic. Basically, it worked well with my systems which I've already spent months upon and which already generate good signals. With those systems, I much prefer my current aggressive MM than this new conservative approach.
 
ubzen:
It was a total fiasco. I'm not so convenience of the Universal Money-Management approach as intended within this topic. Basically, it worked well with my systems which I've already spent months upon and which already generate good signals. With those systems, I much prefer my current aggressive MM than this new conservative approach.


ubzen did you see this article?

http://www.onestepremoved.com/2012/07/

 
Nope looks interesting tho. I'm taking a looking at it now.....Ok, done looking. Humm I'm not sure if he's taking account the spreads and that quite important. I think he admits it's not ready for real trading. Never the less, I've had people pm me with Random entry systems which can overcome the spreads using money-management and trade-management alone. However, I've never received any follow-up of it working on Live/Real markets.
 

I do have something nice about to go live. (Backtest 10.000usd starting capital, 2% risk and 2pip spread)

Backtest with fixed lot size (0.10 lots).

But it stills needs more work to squeeze the most out of it. I hope to get my hands back on it soon!

 
ubzen:
Nope looks interesting tho. I'm taking a looking at it now.....Ok, done looking. Humm I'm not sure if he's taking account the spreads and that quite important. I think he admits it's not ready for real trading. Never the less, I've had people pm me with Random entry systems which can overcome the spreads using money-management and trade-management alone. However, I've never received any follow-up of it working on Live/Real markets.

It does not. I did such testing and spread ends up killing you. With a simulated spread of ZERO, a random entry strategy could work if you let your profits run and add to positions. But in real trading, the entry strategy is filtered by the broker, who applies spread, lag, slip and so forth, tilting the odds seriously against you. This means that the random trade mathematical spectation is far worse than most people think.

There is an enormous difference between 1pip spread and 3pip spread. I use to test my stuff with different spreads and the differences are stunning.

Best :)

 
flaab:

It does not. I did such testing and spread ends up killing you. With a simulated spread of ZERO, a random entry strategy could work if you let your profits run and add to positions. But in real trading, the entry strategy is filtered by the broker, who applies spread, lag, slip and so forth, tilting the odds seriously against you. This means that the random trade mathematical spectation is far worse than most people think.

There is an enormous difference between 1pip spread and 3pip spread. I use to test my stuff with different spreads and the differences are stunning.

Best :)

Agreed & Good Job. I hope you can keep me posted on Live results.
 
flaab:

It does not. I did such testing and spread ends up killing you. With a simulated spread of ZERO, a random entry strategy could work if you let your profits run and add to positions. But in real trading, the entry strategy is filtered by the broker, who applies spread, lag, slip and so forth, tilting the odds seriously against you. This means that the random trade mathematical spectation is far worse than most people think.

There is an enormous difference between 1pip spread and 3pip spread. I use to test my stuff with different spreads and the differences are stunning.

Best :)

The reason for such differences in the results can often be tracked down, in the above tests it looks like you are making an average of 3pips/trade. Increasing the spread from 2 to 3 would decrease your expected profit by 33% if your trading rules are stricktly 'bid' based. If you use bid and ask based rules the result gets probably even worse.

What i am saying is not that the system is bad, the opposite is the case, it looks pretty solid from what i see. Good luck finding a broker with low spread+commission.

 
zzuegg:

The reason for such differences in the results can often be tracked down, in the above tests it looks like you are making an average of 3pips/trade. Increasing the spread from 2 to 3 would decrease your expected profit by 33% if your trading rules are stricktly 'bid' based. If you use bid and ask based rules the result gets probably even worse.

What i am saying is not that the system is bad, the opposite is the case, it looks pretty solid from what i see. Good luck finding a broker with low spread+commission.

Hello ZZueg,

All trades from my EA have gains of > 8-10pips on average. It works fine until a 3pip spread is breached, and then it becomes a crapshoot =D LOL

(The above backtest is with a 2pip spread)

A broker with 1.4-1.8 pip spread and a 30% deviation for slip would be okay I think. It stills need a bit more work though to make it "adaptative" to any market.

Besides, I can make my EA not to trade if spread > 2pips, which would have a much lower correlation with backtest results but profit factor would be steady.

I honestly have no idea of what it will do, I'll let you know.

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