Even if it makes 100%, 40% is killer.
How much is it risking per trade? Is it a set % or is it a % of the account? Does it hedge?
You know what’s funny when I first started I had a drawdown of about 75% I didn’t understand what that truly meant until I started truly building my account. You’re right this could be catastrophic depending on the funds in an account like that. More importantly the person should definitely tweak the system where your potential drawdown is not going towards astronomical heights. Like you said on a 100k account you’d practically kill yourself especially if it’s like 1 - 3 trades to get you to that level.
It just opens a position at 0.01 lot size. It does average 350 trades daily though. Hedging is one part of my bot’s algorithm but only when certain conditions are met.
My bot executes an average of 350 trades daily.
Looks good but needs a lot longer testing.
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What % of the account does it risk per trade?
0.01 lots on a 5000 balance and it went 40% drawdown?
That’s a lot of trades to take especially since 1-2 good trades could net you the same profit of 350 trades but that’s not important. What checkboxes are hit that makes your system say this is a valid trade and vice versa when you need to exit the trade. I think the most important thing when it comes to an automated system is getting out of the position with profit or unscathed. I’m not too familiar with algos as I trade manually but I’m always intrigued to hear people who created systems from scratch with their own rules. Just trying to get a better understanding how your system goes about embarking on a trade.
The bot creates multiple positions simultaneously. Hence, even if the lot size is small, there is the danger of the trend going against multiple open positions.
I trade manually too but on a higher time frame (daily) than what my bot does (which trades in minutes). I use the same technical analysis that my bot uses but it does it hundreds of times faster and hundreds of times more frequently than I do manually.
My purpose for creating the bot is to free myself from needing to sit in front of my computer for hours every trading day, while making even more profits than I ever could trading manually. I get fatigued trading manually and would often see myself taking sub-optimal trades after a while. The bot would always just stick to the rules of the trading I have set and would never deviate. So that hopefully someday, I could be drinking an ice cold beer on Boracay beach while my bot makes enough money for me to not have to worry about money anymore. Haha Well, it does profit an average of $150/day on 0.01 lot size positions. When it hits $10K equity, I can increase the lot size to 0.02 and theoretically, double the profit.
Yeah I was worried you were going to say that. I applaud you for trying to build this from scratch. In the end it’s definitely worth it because its tiring daytrading and this can do it for you automatically. But it needs a bit if work to smooth out these drops. I would only use this on money I could afford to lose. At this time i dont have that so I’ll have to wait for risk management to be better controlled.
I understand that it makes total sense so how many positions does your bot have open during any given time. Also what if a potential spike happens or a crash is your bot closing all positions immediately or ? I kind of want to create a bot that takes my strategy and use it on a demo to see how worthwhile it’ll be. Well I know I’m profitable with my trades but emotion still comes in from time to time where I’d like to see an emotionless bot just get in and grab the trade as long as it meets the criteria.
The indicators that my bot uses are stochastic oscillator, ADX and ROC to determine when to open positions. It then uses ATR to know when to take profit or when to close a losing position (it does not preset a take profit nor a stop loss. It dynamically determines when to close both winning and losing positions based on triggersI have set)
Ahhh I see maybe I’ll try to learn more about EA’s. I’m not a coder so I guess that’s the first obstacle to beat. I’m highly intrigued now and want to learn more about this honestly.
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I created a new thread that might help you out in case you do not already know it. Good luck with your trading @momoisnyc ! How To Use Stochastics To Trigger Position Entry and Exit
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It’s funny I already use stoch as one of my indicators I barely use it but it’s on the chart for me to see. I’m going to learn a bit more about EA’s though a little bit more interested in getting my strategy in a automated form to be copied by my EA.
Oh ok… Thank you and good luck on your endeavors…
Jess
Woah. How did you feel when that happened? 
I suppose depending on the account size. Even if I had that drawdown it still wouldnt feel too bad 
I was a noob when it happened so I didn’t truly understand and actually I got the account out of the rut. It was a pretty sizeable amount but at the same time it’s money I could afford to lose so it didn’t truly bother me as much as it should of.
Yeah I think that’s the key right there. I’m such a noob myself that even if my current account gets blown, it would hurt but I wouldn’t be depressed over it.
Congrats also on getting the account of the rut! 75% is huge! 
