Help with this system

Hey guys, have been playing around with 1min timeframe during london session, pair Eur/usd, and risk per trade 0.5%, and came up with this system, what do you think? it has potential?


thanks!

With apologies for sounding a bit negative about it, my own feeling is that if over 269 trades it has a profit factor under 1.5 combined with a drawdown of over 50%(!) with 0.5% position-sizing, I wouldn’t be looking much further at it. Sorry.

Have you looked at its results over 500 trades, with 1% position-sizing, instead? I’d be far more comfortable commenting on those figures, as I think those (and [I]especially[/I] its highest drawdown figure) would make it much easier to have an informed opinion on whether there’s anything there potentially worthy of further analysis.

Edited to add: that said, as a Euro-trader myself I admit to possibly being instinctively prejudiced against the idea of trading the Euro from M1 charts, so you might want to take my opinion with a pinch of salt. :13:

Hey thanks for ur answer.

You made a mistake about the drawdown. Is 5.61% or $67.45 dollars.

The only thing that matters is what you think about it. FWIW, I do not think it has long-term potential. In addition I don’t think you have nearly enough trades to make an decision.

Any particular reason why?

Your figures show 50%, 67% and 6% for absolute, maximal and relative drawdowns (they’re three different parameters with different definitions). :wink:

No man you are wrong, it shows 50.27 , 67.45 and 5.6%. The first 2 is in dollars not in percentage. The last one is in percentaje, so the drawdow is 5.61%. Here is the same test but with inital Balance 5,000 dollars, as you can see it shows $260.19, $339.07 and 5.6% (drawdown)


Drawdown of the system is 5.6%

My advice: demotrade until you have 500-1,000 trades

Apologies - you’re absolutely right! My mistake; sorry. That makes more sense, and puts a different perspective on it. :rolleyes:

hey, what would be that other perspective?

Final update: 618 trades, profit factor 1.50, drawdown: 8.63%. Account increase: 78%


any comments?

With all due respect bro, IMO I would regard your test results as invalid.

Se that little parameter in the upper right hand corner that says modelling quality @ 24.97%. Thats no good bro. You can’t rely on them. It needs to be at least 90%. Even then because your working with 1min charts you can’t rely on the results because of the inter-polarization process MT4 uses to process 1min data to tick format.

So the good news is that you can get 99.9% modeling quality. Bit of hard work involved. Very very small price to pay (relatively speaking). But if your serious in working with 1 min charts and want to rely on results then it has to be done.
Here’s the how 301 Moved Permanently

Best of luck bro

Bob

Hey Bob, thanks for your answer, it was very helpful!

Definiteley I will check to increase the quality :57:

thanks

Cheers

Live account this week: +22%


So far looking good. Thank u all for you help, I appreciate it. Very good stuff here at babypips! :57:

The only way for you to find out if your system has a potential or not is you to test it for at leas 6-9 months and than the results will show you.