Arh the great debate. Commission or spread. I've used Global Prime just to test them out and... "No Sir, I don't like it" Read their PDS.
With that said I've coughed up 25% of my profit on commission so far. In perspective if we call that cost of goods then from a business model that's very good. All businesses have cost. But that's a stat that can be improved with better performance. Also lets compare to paying a larger spread say 1 pip instead of comm. So far I've made 272 trades for 644.9 pips. If I cough up just 1 pip per trade extra in spread my cost of gods is now 42%. That's worst. Many just don't understand the real cost to trade.
Personal goals. Well my account isn't very big and DC isn't my main strategy. I'm here for the long term. Basically this is my super fund. And I've got 20+ years to build it. DC's is an old love that ForexMike reminded me of and I'm looking to add a couple of strategies to my portfolio to diversify. Demo tests are run at 1% risk to match back testing to keep a controlled environment.
So far all I can say is that the bots are behaving perfectly in line with the logic programmed. Naturally the 1hr charts are producing larger returns but then they are also producing more constant losses.
Unfortunately Dales post just asked more questions than it answered. Nice work Dale lol
It reminds me of the difference of a speculator vs a trader vs a investor. Each has different goals and reasons to play the market. Trading off the 1hr chart is speculating. We care not about the bigger picture. We need to lock in and protect our profits. The simple reality is even at this level, we simply have no idea what the markets will do next. DC is referred to trend following and the motto is let your trade run. Speculating motto is never let a winning trade turn into a losing trade. The two notions contradict. Finding a happy medium between the two is elusive.
What I'm now looking at is time of day and equity stops. So time of day, things like closing all trades before end of day. Looking for that reversal on a Monday. Or at 10am London. For some reason all them British traders like play-lunch just after 10. Then they head of for meetings. And off course market opens/closes and news release.
Then there could be use for an equity stop. When things work for the right reasons, there will be 5 to 8 trades running at the one time. I'm going to start implementing a stop rule that trails a 80% equity once the account is in profit by 'n'% for every n' trades. So if there is only 1 trade on I'll trail the stop a 80% equity once again of 1% has been reached. If I have 5 trades on I'll trail at 80% once 5% growth has been reached. If I had 8 trades then 8% growth is my target.
Undecided on the 4hr chart. Your results seem to mirror mine. That's good. I thinking more like Mike, 6, 8, or 12 hour charts might be more productive. Just for no other reasons than the construction of each candle reflects more of the business hours trading is preformed in.
One concept DC traders have to accept is that the same price action forms all timeframes. A break of a larger period on a lower timeframe is nothing more than a break on a shorter period on a higher timframe.
If trend following is the game then Daily charts are as low as you can go.
With that all said and done. Just manually closed out on news