Welcome back Forex Fans.
Here's my weekly update on the Forex robot's i'm following.
God's Gift EUR/USD was the star of the week and pulled in as many as 156 pips through Thursday before giving back 70 on Friday. Even so, it was up a respectable 56 pips on the week.
Megadroid was on the wrong side of the trade this week and went long EUR/USD at 1.3294 in the demo account on Thursday. This same trade did not execute in the live account due to the spread widening. That trade got stopped out down 42 pips.
But not long after that, Megadroid went long EUR/USD again, this time at 1.3271, and this trade executed in both accounts. This trade quickly went the wrong way and was down as much as 80 pips. I closed out that trade manually in the live acount down about -51 pips and felt good at the time bypassing about 30 more pips of downside. However the trade slowly came back and the demo account ended up closing the trade out many hours later +1 pip.
So the net result is a dodged a bullet on the first trade, but took my lumps on the second one. The mistake I made was closing the trade manually. Had I not done that, I would have gained one pip, but instead, I ended up loosing 51 pips which was about half of year to date gain. Trading manually against your own EA is a mistake and it cost me. I won't be making that same mistake again.
Also, this is a reminder that Megadroid trades 2 strategies. The first one is a short-term scalper with trades limited to 2 about 2-3 hours with a 41-pip stop loss. The second strategy has a longer time frame and larger stop loss. Either way, you have to trust the EA to execute its strategy and don't mess with it manually!
Check back later for more fun with EA's.
Hello Chris,
ReplyDeleteThank you for the update :o) Definitely intervention - as I have said a few times - is the mark of lack of confidence and the fear of market exposure. You definitely showed here a very good example of when intervention goes wrong and how costly it can be. In the future refraining from intervention may be something you will regret (because maybe you will lose when you would have not) but in the end it is the only way to guarantee that a trading tactic will be executed like you want it to. Intervention is nothing but a non-mechanical modification to a trading strategy with unpredicatable results, it should simply not be done.
Also what did you think about Watukushay FE and myfxbook ? As I said before, having myfxbook widgets would make your results self-update so you wouldn't need to change them manually every week :o). I hope you run Watukushay FE in the future !
Thanks again for the post,
Best Regards,
Daniel
Sorry to hear about the loss Chris.
ReplyDeleteI will admit when I was first trading my Tiger Tail method manually, I would get scared when it went the other way on the trade. On two occasions I closed out the position early. Only to have it come back and make a gain had I stayed in. At the time I did not have my method coded in an EA but the concept of messing with the 'plan' stung me those two times.
I suppose I could mirror Daniel's comment in that I did not have confidence in my trading method.
You see draw down a lot on myfxbook charts, and other systems on the net. The systems as a whole are in the positive but if you look you see some dips that could make you panic. But for reasons of the method the system comes back and make a gain.
At any rate hang in there, I have already made mistakes this year that has cost me a better percentage. e.g. Before I started trading Tiger Tail live I put in manual orders. One of my orders executed on a Sunday around the first tick because there was a pretty big gap in price from Friday to Sunday over the weekend. There is a slippage setting I forgot to set. To say the least I got in the order then it quickly took my take profit, which was lower. Lost a quick 15 pips because I did not set that slippage setting.
Anyway, thanks for posting your results. Looking forward to better times.
JT
Daniel-
ReplyDeleteThanks for the comments, 100% correct all around.
It reinforces the importance of fully understanding the logic of the system being traded, a point you make strongly in your e-book.
In my case, I wasn't aware of the stop behavior of S2, so I was a bit shocked when S1 lost 41 pips, and S2 drew down about 5% in a just a few hours time. So the system drew down about 9% in no time at all. As it is now, I still don't fully understand the exit logic on S2, so I need to do some more research on that.
Regarding FX-Book, I signed up but haven't setup my accounts yet. Perhaps I'll get to it it this weekend.
It would probably be a good thing because I think i'm putting too much emphasis on short-term performance. Since you can't do much about short-term performance, there's no sense in obsessing about it.
I found with equities that once I stopped obsessing about performance, I started doing much better. Perhaps Forex is the same, who knows. Anyway, i've found that you have to be willing to loose some money to make money. And if you are afraid to lose, you will. Its strange psychology.
Also, I owe you a post on Watukushay FE. I also have some other material that's ready for posting so check back later for that.
Thanks again for your comments and for generously sharing all your knowledge and experience!
JT-
ReplyDeleteThanks for the comments.
That's a downside of posting your results, you have to go public with your shortcomings which can be tough on the ego.
And that alone can change your psychology and affect your results. Again, strange the way the psychology goes.
But I think the results are important since it hooks you into the site and gets you to return, so I don't want to drop them totally.
I would like the blog to be more about EA information sharing and coding, and less like an EA horse race.
Thanks again for the comments.
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