I've been running a PSAR EA for the 4 days of last week and all of this week, on 4 different demo accounts to be able to compare different strategies.
The common features for all 4 are: set to place trades from 08h15 GMT to 15h00 GMT, set to use H4 for entries, risk set on 3%, PSAR trailing stop, PSAR set on 0.035 and 0.08, move to B/E after 35 pips. I focus only on the total profit, not individual trades, so when I judge the profit is decent enough I close all trades and leave that account blank until the next day.
The strategies are:
- PSAR as is, no filter, but closing manually, usually around 15h00 GMT
- PSAR with D1 trend filter, closing manually as above
- PSAR as is, no filter, no manual closing, running full-time apart from the time restriction for placing trades
- PSAR with D1 trend filter, running continuously as in #3.
The first 2 strategies started last week well, with #1 doing best. It made about 28% return last week, but lost small amounts on all 5 days of this week. It closed about 10% up overall, courtesy of the 28% it made the previous week. Strategy 2 made 8.1% last week, but then lost on 4 days this week, making up a little today. It ended on 6.8% overall (ending balance = $1068).
Strategies 3 and 4 were slow starters, but over this week have managed to build their equity amazingly. #3 ended the testing period with 80% profit (it's true!), or a balance of $1802 made from $1000 since last Tuesday morning. Strategy 4 closed with a 'mere' 51.9% profit.
It is clear that the D1 trend filter reduces profits, but it might enhance reliability in the long-term - time will tell. The 80% return made by Strategy 3 is unbelievable, and it might prove to be just that - win big this week, lose big next week. I wish I'd had real money on that one, but next week I might be singing a different tune.
I recorded total profit for #1 and #2 each hour of the trading period. There seems to be an early peak between 10h00 and 11h00 GMT and a bigger one (which is when I closed all trades most days) between 14h00 and 15h00 GMT.
I'm looking forward to next week's fun!