Cost Averaging System - page 13
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Aaragorn,
Don't go with a live account yet. I am scared... really. It is still experimental.
As for exponent of 5, that means you sill be adding fifth power of lots. Now that is gutsy.
That large drop at the end after it stops trading usually means that you got a margin call. I think that is what I figured out a while ago. Basically, the equity dropped below the margin required so no new trades were taken and the positions closed at the end of testing. Please correct me if I am wrong.In my case i beguin to test your EA in live account but it's true that i am scared of the big stoploss cause i only still have 960 $ in my account (i had 1 480 at the beguinning but others tries on different EA like Avalanche produced big drawdown).
I am not sure i will continue in live but i will do in demo.
Maji,
All you have to do is keep this inside the 50's if you follow me. (football expression) Meaning, stay within the width of the playing field.
If you added a channel indicator...(I recall doing that with an EA a while back but I don't remember if I used shi or something else...let me see if I can find it)
Just keep it from taking positions which have profit targets closer to the edge of the channel than you decide is high enough probability. You'll miss a few breakouts but you're not looking for breakouts. Actually you'll miss parts of the breakouts.
I know the lot exponent to 5 was a gutsy move, actually I've run it at 8. Remember too that I also reduced the maxtrades=2 and pipstep=85 or 100. It's just different ways of deployment. You can either add more positions and increase gradually or you can wait longer and then call in the artillery.
The image below shows this channel indicator running on the 1H chart with a setting of 200 bars. That's showing the last 200 hours in terms of it's highest highs and lowest lows. I think if you stayed within this field like say disallow long positions to open if they are closer than 20 pips to this top channel line with a t/p of 7 and don't allow short positions to open if you are within 20 pips of the bottom channel line with a t/p of 7. You follow me? Just make a "block long" and "block short" feature and attach the triggers of that to the indicator.
That should keep the game inside the 50's and the cost averaging should clean up everything that happens inside.
correction...I think I like 500 hours better.
ps. just found this bug in the channel indicator.
actually it might be easier to work off the midline?
Forward testing
The testing for this week updated.
Cost Averaging v3 & v4 with the patch added.
John
Forward testing RSI
results progressive for this week RSI.
Imagine how much better it would have been without AUDUSD.
John
ADX exhaustion test...
Maji,
I have modified v4 to add the ADX trend exhaustion filter. As you can see from the picture (last 2 buy orders), the ADX filter will not allow adding to the counter-trend position until a trend-exhaustion condition exists (peak of ADX).
The original script would have added several positions at a higher basis, thus higher risk. This concept should lower the cost basis by placing the counter-trend trades at higher-probability trend exhaustion points.
I am still testing this modified EA, and will post my results and will send the EA to you for further evaluation.
Carl
Carl,
I am curious why it didn't Play the sell positions on the down side of the peak?
ADX Trend Exhaustion...
Aragorn,
Thats all Maji's code. I am using the visual backtest right now (still) to see how the code trades, and from what I can see, Maji uses both trend following and counter-trend strategies. So, in the picture, the pyramider was in a counter trend mode by buying as price falls.
My goal by using ADX is to only enter new (buy, in this case) positions when ADX signals a higher-probability trend reversal. So, instead of the script continuously buying at the pip-step intervals as price falls, it will only buy when ADX peaks (possible trend reversal) and the pip-step interval has been met.
Risk is lowered dramatically, and the cost basis is lowered faster, as well.
Carl
ADX Trend Exhaustion...
Well, so far so good. Started with $10k account. After one month of trading in the strategy tester (visual verification... so slow... tick), up approx $1,120, trading EURUSD. However, when you adjust for risk and for maximum 1.9 lots opened, the returns are very attractive.
Continuing to monitor the strategy tester, and will let it run to completion before the night is over (turn off visual mode).
Carl
I am having internet problems and can't send out any emails. So, I won't be able to answer anyone who emails me.
Crodzilla, keep on testing and we should find something valuable here.
Aaragorn, I tried understanding the channel code before, but I could not. On top of it, I think it repaints the past. That is my gut feeling.
Statement For Version 3
Not good day for V3.