Yes, I meant on your trailing stop loss. You had said in another post that instead of just using the normal trailing stop that you were trailing it in steps of some sort. I think it was maybe 5 pips or something. Is that still what you are doing, or are you using some kind of calculation for that also?
Those are two separate concepts. One is the size of the stop and the other is the stepping or discreet concept.
In the case of Vijay’s implementation, it is a 5 pip stop size that should be trailed in discreet steps (instead of continuously).
In my case, it is still trailed in discreet steps but the size is determined by the factors I have already mentioned as well as the Maximum Favourable Excursion (MFE) & Maximum Adverse Excursion (MAE) of previous trades (long and short trades are treated separately).
Hi traders,
Finally one of my friend (client ) found a broker which gives no slippage guaranteed on pending order( if pending order is more than 3 hours)
I have opened the account and will modify EA as it is having 6 candle per week.
Also I will publish in myfxbook.
It will be for testing purpose ( small account)
Regards
Vijay
Carnino, in your testing how detrimental was it to use the continuous trailing stop loss. Was it worse to use the continuous stop or worse to just use the original fixed 5 pip stop? I ask because I have now switched to your single trade plan, but with my current broker the minimum step I could use in my trailing stop would be 10 pips, which seems a little large for this type of trade, so I am debating on just using the 5 pip stop or trying the continuous trailing stop.
In the sequence of best to worst, these are my findings:
[ol]
[li]The best situation in order to maximise profits is to use [B]discrete stepped trailing[/B] with a [B]smaller trailing stop.[/B] ([I]Example: 386.4% Gain - GBP/USD 2013; 5 pip Stepped Trailing Stop; 5 pip Stop-Loss[/I])
[/li][li]An acceptable situation is [B]continuous trailing[/B] with a [B]larger trailing stop[/B] which has only a small impact on the profitability. ([I]Example: 312.6% Gain - GBP/USD 2013; 10 pip Continuous Trailing Stop; 5 pip Stop-Loss[/I])
[/li][li]A less acceptable situation is [B]discrete step trailing[/B] with a [B]larger trailing stop[/B] which has a large negative impact on the profitability. ([I]Example: 280.1% Gain - GBP/USD 2013; 10 pip Stepped Trailing Stop; 5 pip Stop-Loss[/I])
[/li][li]The least acceptable situation is [B]continuous trailing[/B] with a [B]smaller trailing stop[/B] which has worst impact on the profitability. ([I]Example: 253.7% Gain - GBP/USD 2013; 5 pip Continuous Trailing Stop; 5 pip Stop-Loss[/I])
[/li][/ol]
All examples are for 24hr Pending orders with no Trailing Gap.
[B]In conclusion, continuous trailing is detrimental with small trailing size but favourable with large trailing size.[/B]
At the moment I papertrade GBP/USD on the Future market because the spot forex market is a non regulated market and I am not sure about if I have disadvantages of the non regulated spot forex market and of some forex brokers with their own laws about slippage, spread, stop-loss-fishing etc. Of course I have slippage in futures too, but it is regulated and I have a better feeling.
What do you think about trading the strategy with futures? Each tick (1 pip) in GBP/USD future contract means 6.25 USD. Per limit orders (stop buy and sell stop) it is possible to trade without spread but commission for each contract is about 8 USD.
At the moment I test it with 2 contracts: 1 contract with 5 pips stop loss and 5 pips take profit and the second contract with a trailing stop of 5 pips.
Best regards and have a nice weekend,
Dax
Carnino, Just curious, when you did the tests, what percentage of your capital did you use for each trade to get those returns? If you still have them, would you mind posting the back testing reports?
I always use 1 % Risk in back-tests, just like the statistics and results that I have posted previously. However, the % gain (or the back test results) are not the point of the examples, but rather, as an answer to your query about continuous trailing.
For the more profitable strategy, that uses several enhancements to the original strategy, I did provide details and results via [I]MyFXBook[/I], and that is the one that I suggest you should be looking into (See Post #228).
Thanks Carnino, I had missed those links earlier. Thanks for all of your hard work on these, it has been very interesting.
3 losses for me this morning on Oanda 
Anyone else with trading results today?
I had losses in both directions today.
Losses both ways for me too today. I did have three winners yesterday. How about you, Vijay?
Hi Vijay, could you tell me which broker gives no slippage guarantee?
Carino, instead of the 1% capital that u r risking on every trade, have u tried a bigger percentage, say 5%. Will it survive?
Thankyou both of you guys for this priceless work.
Happy trading.
To answer your own question, just look at the [I]Kelly Factor (Criterion)[/I] in the statistics of my various posts. Post #205 has the statistics for [I]Vijay’s[/I] original strategy and Post #228 the statistics for my variation.
Thankyou for the reply Carnino,
I have read the blog from page one before I posted the question. In the post 205, u were still risking 1% of the account. But the only change is the way you allocated the funds. I was asking you if you have tested trading 5% of ur account at a time, with any of these percentage allocations?
Thankyou once again.
probably there is no broker which gives no guarantee on slippage.
More or less slippage is there.
Exness gives no slippage guranteed if pending order is more than 3 hours However I need to chat with them regarding gaps.
It was loss for me on bothside on tuesday.
Hi Carnino, in your tests did you used spread + offset or only spread ? I’m trying to test it with tick data suite but I’m not getting result like yours.
Thank you
Regards
I repeat - that is why I stated the [I]Kelly Factor (Criterion)[/I] !!!
If you do not know what that is or how it tells you how much risk you can use, then please do a search on the Internet about how to use the [I]Kelly[/I] in Forex trading.
Here are few such links, but there are plenty other sources of information:
[ul]
[li]The Kelly Criterion
[/li][li]Money Management Using The Kelly Criterion
[/li][/ul]