Hi all, I’ve spent the last ten years coding, and the last 3 coding forex EAs.
I’ve stumbled many a time, and made foolish purchases many other times after that.
I think I’ve unlocked the power of diversification with the latest build of an EA I’ve been working on that combines all of the best strategies I’ve found to work personally, and have reverse-engineered from others, back and forward tested since then.
Mean-reversion, trends, pending orders, grids, flexible and hard TPs and SLs etc - to me trade management is just as, and sometimes, more important than the signal. How a pair moves I think is more important than which direction a pair moves [when it comes to algos] in the long run.
I do most of my tests from mid 2017/Jan 2018 when new forex regulations came into play, but when seeking a 1:1RR, so far I’ve only found one idea that seemed to work: ‘JPY is tanking so if you trade against it you’ll probably win’. Most other ideas use [controlled] grids. (Or smaller TPs and wider SLs)
Why controlled? Yes, martingale grids will blow your account, but with algos, having a preference for averaging and strict limits on DD and maximum orders (~6 seems to be the sweet spot) can create a flexibility and certainty / ease of tracking I’ve not found anywhere else.
I’m not new to trading, but I’m new to the group so am all ears for opinion, but combining the best strats I’ve found in the past 3 years and diversifying them all into one EA I think the results are difficult to argue with.
If you combine strats and have them all trade on equity, a beautiful ‘ebb and flow’ emerges that seems to eradicate most issues I’ve found with algo trading.
Let me know what you think!
Cheers,
James