The Legend of The Gambler - page 49
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will you work trend or breakouts with that system?
Most likely, I will go with trend. I'm looking for pullback instead of breakout of the trend. Breakout is safer, but since I'm thinking of a scalper strategy and not a long term strategy, the breakout confirmation would take too long, and there is more slippage during breakout when every other trader is looking for it.
So initially, I will try to use pullback. Yes, more fakes and probably more losses. But that's my initial plan of attack.
Most likely, I will go with trend. I'm looking for pullback instead of breakout of the trend. Breakout is safer, but since I'm thinking of a scalper strategy and not a long term strategy, the breakout confirmation would take too long, and there is more slippage during breakout when every other trader is looking for it. So initially, I will try to use pullback. Yes, more fakes and probably more losses. But that's my initial plan of attack.
will see...I prefer breakouts after consolidation
Yes, we'll have to wait and see the test results. First, I have to code something to test.
I completed the very first draft of the "BlackSheep" trade entry logic that I manage to copy and replace into an existing arbitrary EA.
Initial TP is set at 20 and SL is set at 10. I will run the trade entry logic check on a IBFX mini demo, using the MT4 backtester to check.
Test #1: Trade Logic did not trigger trade in the backtester, so I will need to check again the code. Going to put some comments to see if I returned the correct buffers from the indicators.
Yes, we'll have to wait and see the test results. First, I have to code something to test.
I completed the very first draft of the "BlackSheep" trade entry logic that I manage to copy and replace into an existing arbitrary EA.
Initial TP is set at 20 and SL is set at 10. I will run the trade entry logic check on a IBFX mini demo, using the MT4 backtester to check.
Test #1: Trade Logic did not trigger trade in the backtester, so I will need to check again the code. Going to put some comments to see if I returned the correct buffers from the indicators.SL is a bit small...12-15 for me...also I tend to have TP almost same as SL...don't know why...guess came with experience...
Found 4 coding errors on my part.
I got that fixed up and the trading logic looks adequate. It still needs to be refined, but at least it is entering trades in the vicinity of where I want it to. That's a first step.
Error 1: My stops were invalid because I forgot that brokers use 5 digit, so my stop*point need to increase by a factor of 10.
Error 2: I had preemptively coded in the time allowed to trade to M to F, and certain hours, but this is not going to work on backtester.
Error 3: I didn't close my entry triggers after the trades were open, so it kept opening trades after a trade was already opened and closed.
Error 4: My entry logic was incorrect as it was too restrictive, so I eased the logic a little bit to get the first possible entry when all the entry criteria was met.
My sugar high is wearing off, so I'm slowing down and getting read to head out for dinner.
SL is a bit small...12-15 for me...also I tend to have TP almost same as SL...don't know why...guess came with experience...
I plan on using good RR ratios. I'll figure that out when I do more tests and plan my MM strategy around the RR ratios.
Those TP/SL were just arbitrary for now. I do not plan on using IBFX with the scalper, so I will need to reconfigure the whole EA when I am finished testing. I'm not going to use a standard fixed SL, it will be variably fixed. For example, I might consider using a short term ATR to calculate my stops.
Nothing is set in stone yet. It's only my first draft, so it's going to take time to mature.
Backtester results in pips are terrible, so I have a long ways to go. I'm going to refine the TP/SL until I can become breakeven first. Then I'll try different MM's to get some profit out of it.
LOL. After 25 trades on the backtester, my arbitrary TP/SL has me at breakeven. Not bad!
Yes, this is just a test of the trading logic.
The modeling quality is complete garbage, LOL, so the results is completely unreliable. This is a little trading machine, the time for these trades were only 1-2 days on the backtester. However, I think I will cut down on a lot of trading when I put in the restricted time it can trade to London and NY exchange hours. But I'm not sure if that is good or not. We'll just have to test and see when I add more features.
I just started a MBtrading demo, and I will continue my development on this broker instead. There will be other new challenges since they do not allow hedging following NFA rules, and have a shutdown maintenance time which may affect the entry.
They also charge a commission per trade, so that is going to eat away at the profits. But they will not trade against you, which I feel is a fair trade-off. I have heard reports that their demo server is not as stable as it should be. They also don't have differentiations like mini or standard accounts like IBFX.
My favorite is that they do allow scalping, and I can set my TP/SL wherever I want.
It's close to 1am on Saturday, and I just added a lot of features that I can't test on the backtester, so I will have to wait until start of the next trading week to forward test it.
I'm still trying to figure out a good way to implement a spread filter. I don't want to trade if the spread is too large, but it is not as easy as it looks to get it right. I may need to add a time filter along with the spread filter, which is more complicated, but more correct in what it needs to do.
I'll probably let the backtester run on M1 for the IBFX demo to test the entry logic while I go to sleep tonight. I know the test quality is terrible, but it would be interesting to see the results over a long period of time than 1-2 days of my previous quick test.