This is a bit confusing.
The real account are all losses today but Vijay’s demo account has a winner for the 5pip TP order.
Both orders in real and demo have exactly the same open price, tp and sl, there was zero slippage by IC Markets.
How can we explain this discrepancy?
Does this demo account have tighter and hence more favourable spreads than the real account?
Are you trading with money? I suggest you minimise your lot size to test this strategy. I use 0.03:0.01:0.01.
I will not risk any more unless I am convinced this strategy makes money in live conditions.
Interesting results Mr. C; I would have guessed a higher return.
As I’m not familiar with how to do back testing, may I impose on you try to run a test on the GBP/USD (same parameters) with the strategy I currently using? Namely: 20-25% with a fixed 5 pip SL/TP and 75-80% with a 5 pip trailing SL; 100 pip TP (perhaps even with a 6.5 pip TS = 5 pips + average spread of 1.5).
Your thoughts on this would also be highly appreciated.
I happened to be watching the market during the news event. On my Oanda live acct the spread jumped to roughly 20 pips and stayed there for about a minute; on my Pepperstone demo acct the spread on the same pair (the AUS/USD in this case) only opened to about 8-10 pips for less then 15 seconds.
It could be that the news events affect live accounts first and demo’s second; lag time from broker to broker; server space dedicated between live and demo accts which will contribute to lag time. Or it could be a conspiracy: brokers want you to win on demo accts to suck you into opening a live account, lol.
Demo is ECN and real is standard so there is difference in spread. If you check M1 chart the price has just hit the TP and reverse back.
It is tough time right now for the system as there are few loss in sequence.
regards
vijay
Sorry, but I am a bit confused! What is the 20-25% and the 75-80%?
Is that your Risk%? If so, you are going to blow your account in no time at all!!!
Sorry as well Mr. C, I meant 20-25 / 75-80% of 1% risk; ie: 0.20 - 0.25 @ 5 pips SL and @ 0.75 - 0.80 with either a 5 or a 6.5 pip trailing stop loss.
And I meant with these same parameters:
[LIST]
[li]Currency Pair: GBP/USD
[/li]> [li]Period: 2012-12-31 to 2013-12-27
[/li]> [li]ZimeZone: UTC+2 (NY Close)
[/li]> [li]Spread: 1.5 pip
[/li]> [li]Breakout Offset: 1.5 pip on both High and Low
[/li]> [li]Risk: 1% (Initial balance $10000)
[/li]
Thank you Vijay.
Demo being ECN explains it.
Simon
Sorry, but there seems to be a misunderstanding. 1% Risk, means that the lot size is continuously adapted based on current account balance so that the stop-loss will represent a 1% loss.
So 25% of 1% Risk, means that you want to risk only 0.25%. This seems like a strange request for a back-test, since all you have to do is adjust the final Gain% of previous back-tests to derive the final profit. There is no need for me to redo a back-test just for a change in risk percentage.
Am I understanding your request correctly?
I think he meant 20% to 25% of the trade for the first take profit with a fixed Stop loss of 5 pips and the remaining percentage for the second trade with a trailing stop loss. i.e. .02 lots for trade one and .08 lots for trade two.
Yes, there is a misunderstanding and sorry for not being clear. What I mean is basically a hybrid of your idea of only taking one position at 1% risk and using a 5 pip trailing stop. Instead, you open 2 positions at the same time splitting the 1% risk. The first position would have a fixed SL of 5 pips and the second position would have a trailing stop loss.
After doing some random manual back testing with drawn horizontal lines, as well as from what I’ve garnered from discussions here, it seems that the first position of 5 pips is hit more often then ViJay’s other two. So by splitting the lot (ie: 0.02 and 0.08) you would lock in 5 pips profit at 0.02 and break even on the second position at 0.08, or take an additional few pips at a higher rate of return. And if it does really take off in your favor, then you can sit back and enjoy the ride :).
For example: position goes in your favor, but only for 8 pips before it retraces (which it seems to do often); position 1 would yield a USD $10.00 profit and position 2 would yield 3 pips for a $24.00 profit; or $34.00 total. Using a single position with a trailing 5 pip SL as you suggested would yield the same 3 pips, but give $30.00 profit.
Hope this clears it up and sorry for any confusion 
Just seen this after I posted the above reply, thanks Grock, that’s exactly what I mean and thanks for stating it so simply. Sorry guys, English in not my native language nor am I a mathematician.
If that is indeed the case, then I will not be able to oblige [I]PipHauler’s[/I] request.
Very early on, my testing demonstrated that the most profitable strategy was a 100% allocation to a single order; so all subsequent EA development, has evolved based on that premise. The only older versions of EAs I have for back-testing is for [I]Vijay’s Original Strategy [/I]and for the [I]Single Order with Trailing Stop[/I].
However, I would like to leave this suggestion for [I]PipHauler[/I] and others here on the thread - Take some time to learn how to back test strategies (manually or with an EA). It is very important if your want to become a better trader. It is all part of the learning curve and the sooner you get in to it, the better it will be for you as a trader.
Thanks for clearing this up and I have already answered in part in the previous post, however, in response to your example, I would like to call your attention to that fact that continuous trailing is a bad idea (please refer to post #322).
Using discreet or stepped trailing in your example, would yield only $10 in total ($10 for the 1st part and $0 for the second part). Obviously, this is not bad, but 100% allocation to a single order gives better results in the long run.
However, [I]Vijay’s 1 pip gap technique [/I]does improve the [I]Single Order with Trailing strategy [/I]and gives you the “protection” you are looking for in your “split” technique. As he said, 1 pip in 5 pips represents your 20% protection that you are trying to achieve in your partial close strategy.
Thanks anyhow Mr. C, unfortunately Oanda (as far as I know) does allow you to change how the trailing stop works; ie to stepped so I would in fact gain the 3 pips as stated. Perhaps it is possible with other brokers to change to a stepped TS (which sounds good to me). My only thought was to lock in some profit.
You mention having an EA for [I]Single Order with Trailing Stop[/I]. Is this something else Vijay has available (same way as his other one) or can you tell me where I can obtain it?
I don’t mind investing the time to learn how back test, but writing EA’s is a whole different matter
[B]Disregard my question as I realized that you took Vijay’s original EA and just changed the second two values to zero and set trailing stop to value 1[/B]
MetaTrader’s Trailing is actually a hybrid of Discreet and Continual trailing. True Discreet/Stepped Trailing is only possible with an EA.
No, I am not using [I]Vijay’s EA[/I]. I wrote my own EA for the back-tests. I do plan to release it into public, but only later when it is fully tested and this thread (and [I]Vijay’s[/I] forward test) has progressed further.
Thanks again and I’ll be keeping an eye out for when you release the EA (tried to PM you, but I don’t see that as an option here), in the meantime I will most likely support Vijay and acquire his EA.
A question for Vijay regarding setting up the 1 pip gap (unless you can answer this too Mr. C): [I][B]“Method : Trail of 5 pips + Trail Gap 1 Pips (Target 100 Pips and stop 5 Pips)”[/B][/I] and which you also mentioned in post #252. How do you set this up or is it an option in your EA? I don’t see how this can be done manually using Oanda.
It is only possible to automate this in an EA!
3 Losses for me on Oanda…
3 wins today on VJs EA with IC Markets. The other 3 are still open.