Winsor's Five Trading EAs in Real Time
Medlem sedan Apr 20, 2010
814 inlägg
Jul 31, 2010 at 06:08
Ohh... I see, that make sense, achieving 28% ROI last year = average 2.33% per month for each EA.
5 x EA will have average 11.66% ROI per month.
And your total 5 x EA performance of July'10 estimate ROI/M 17.58%.
So is already at the top performance of expectation compare to last year average ROI/M 11.66% .
Well if you use Myfxbook to update the statement, it will easily calculate how much profit each EA make using the customize analysis.
So I guess most people prefer of 2.33% ROI per month instead of high gain low risk 50% to 100% ROI/Month.
5 x EA will have average 11.66% ROI per month.
And your total 5 x EA performance of July'10 estimate ROI/M 17.58%.
So is already at the top performance of expectation compare to last year average ROI/M 11.66% .
Well if you use Myfxbook to update the statement, it will easily calculate how much profit each EA make using the customize analysis.
So I guess most people prefer of 2.33% ROI per month instead of high gain low risk 50% to 100% ROI/Month.
Information is Gold when come to organised.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 02, 2010 at 21:53
Hi ForexSeeker,
I would recommend that we avoid calculating monthly ROI because this number will fluctuate from month to month. This is a marketing scheme to get traders involved in Forex trading by showing them outrageous returns. New traders are driving by greed.
Your comment 'And your total 5 x EA performance of July'10 estimate ROI/M 17.58%' is not true because you will need five times the capital; hence, this number will be divided by 5.
You have to remember that Warren Buffett, the second richest man in the world is only earning roughly 25% return per year. So far, I have not seen any Forex trader being richer than him.
It is a marketing scheme to show 10% return per month or 1200% return per annum. This type of results will not last and hence, it is more of gambling. The truth is that wealth accumulation takes time and should be counted in years not months.
I would recommend that we avoid calculating monthly ROI because this number will fluctuate from month to month. This is a marketing scheme to get traders involved in Forex trading by showing them outrageous returns. New traders are driving by greed.
Your comment 'And your total 5 x EA performance of July'10 estimate ROI/M 17.58%' is not true because you will need five times the capital; hence, this number will be divided by 5.
You have to remember that Warren Buffett, the second richest man in the world is only earning roughly 25% return per year. So far, I have not seen any Forex trader being richer than him.
It is a marketing scheme to show 10% return per month or 1200% return per annum. This type of results will not last and hence, it is more of gambling. The truth is that wealth accumulation takes time and should be counted in years not months.
Medlem sedan Apr 20, 2010
814 inlägg
Aug 02, 2010 at 23:03
How much minimum investment each of your EA need ?
As I base on minimum each EA need 1k, for trading 1 pip = 0.10 USD.
Your July total performance for 5 EA is +879pips. For easy calculation, I convert 879 pips = $87.90 USD
ROI = 87.90 / 5000 = 17.58%
You said need to divide 5 more ? Mean minimum each EA is 5k ?
ROI = 87.90 / (5x5000) = 0.35%.
So 1 year ROI = 4.2%
Which do not correctly your statement 'targeting 40% ROI for each EA per annum. Last year, the average ROI for each of our EAs was 28%.'
As I base on minimum each EA need 1k, for trading 1 pip = 0.10 USD.
Your July total performance for 5 EA is +879pips. For easy calculation, I convert 879 pips = $87.90 USD
ROI = 87.90 / 5000 = 17.58%
You said need to divide 5 more ? Mean minimum each EA is 5k ?
ROI = 87.90 / (5x5000) = 0.35%.
So 1 year ROI = 4.2%
Which do not correctly your statement 'targeting 40% ROI for each EA per annum. Last year, the average ROI for each of our EAs was 28%.'
Information is Gold when come to organised.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 03, 2010 at 00:18
Forex Seeker,
Let's me walk you through the math as you are getting the numbers mixed up. Let's say that you invest $1,000 in Haley and are looking to gain 40% ROI per year. This means that after 12 months, you should be looking at $400 profit in your account i.e. $400/$1000 to get 40% return.
In term of pips, since you only have $1,000 it is best to trade 1 pip = $0.10. Assuming that Haley achieves its yearly target of 4,000 pips, this will be $400 (4,000 pips x $0.1).
Let's say that you have $10,000 and trade 1 pip = $1, then the yearly target of 4,000pips will yield $4,000 profit. You started with $10,000 and after 12 months ended with $14,000. This is your 40% ROI per year.
Let's say that you have $5,000 and you want to trade $1K per trading system. If each trading system is able to achieve 40% ROI per year i.e. $400; then you will have $400 x 5 trading systems = $2,000 total profit. Since you started with $5,000 and ended up with $2,000 profit. Your yearly return will be $2,000/$5,000 = 40% ROI.
Let's me walk you through the math as you are getting the numbers mixed up. Let's say that you invest $1,000 in Haley and are looking to gain 40% ROI per year. This means that after 12 months, you should be looking at $400 profit in your account i.e. $400/$1000 to get 40% return.
In term of pips, since you only have $1,000 it is best to trade 1 pip = $0.10. Assuming that Haley achieves its yearly target of 4,000 pips, this will be $400 (4,000 pips x $0.1).
Let's say that you have $10,000 and trade 1 pip = $1, then the yearly target of 4,000pips will yield $4,000 profit. You started with $10,000 and after 12 months ended with $14,000. This is your 40% ROI per year.
Let's say that you have $5,000 and you want to trade $1K per trading system. If each trading system is able to achieve 40% ROI per year i.e. $400; then you will have $400 x 5 trading systems = $2,000 total profit. Since you started with $5,000 and ended up with $2,000 profit. Your yearly return will be $2,000/$5,000 = 40% ROI.
Medlem sedan Apr 20, 2010
814 inlägg
Aug 03, 2010 at 01:21
Ohh.. I see, my mistake of calculation is X 5 again after getting ROI of each EA.
The total up ROI of 5 EA will be same also no need x5.
Target to get :
Yearly ROI = 40%
Monthly ROI = 3.33%
Real result :
2009 ROI = 28%
Monthly ROI = 2.33%
July' 10 pip gain for 5 EA : 879 pip
Estimate ROI July = 17.58%
So July '10 performance is way far good from Expected ROI.
The total up ROI of 5 EA will be same also no need x5.
Target to get :
Yearly ROI = 40%
Monthly ROI = 3.33%
Real result :
2009 ROI = 28%
Monthly ROI = 2.33%
July' 10 pip gain for 5 EA : 879 pip
Estimate ROI July = 17.58%
So July '10 performance is way far good from Expected ROI.
Information is Gold when come to organised.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 03, 2010 at 01:57
It is 1.758% ROI for the month of July for the 5 systems. Myfxbook has broken up the stats for Haley, Jasmine & Leah.
Haley 5.58% for July, 16.42% for June 2010
https://www.myfxbook.com/members/winsor/www-ctsforex-com-haley-gbpusd/37650
Jasmine 11.12% for July, 20.96% for June 2010
https://www.myfxbook.com/members/winsor/www-ctsforex-com-jasmine-eurusd/37651
Leah 9.59% for July, 16.27% for June 2010
https://www.myfxbook.com/members/winsor/www-ctsforex-com-leah-eurusd/37653
Notice how the monthly ROI fluctuate greatly that is the reason why ROI should be calculated over 1 year to average the results of 12 months.
Haley 5.58% for July, 16.42% for June 2010
https://www.myfxbook.com/members/winsor/www-ctsforex-com-haley-gbpusd/37650
Jasmine 11.12% for July, 20.96% for June 2010
https://www.myfxbook.com/members/winsor/www-ctsforex-com-jasmine-eurusd/37651
Leah 9.59% for July, 16.27% for June 2010
https://www.myfxbook.com/members/winsor/www-ctsforex-com-leah-eurusd/37653
Notice how the monthly ROI fluctuate greatly that is the reason why ROI should be calculated over 1 year to average the results of 12 months.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 03, 2010 at 02:39
August 2, 2010 Update
Today was an excellent day for Haley as three GBPUSD buy trades hit their targets. The first to hit its take profit was Haley’s subsystem 8, which opened the buy trade on July 30 at 12:00. At 09:07 today, it hit its take profit of 180 pips. Roughly, four hours later, subsystem 5 hit its target of 200 pips. This is sweet!
The best trade was Haley’s subsystem 3 which open its buy trade on July 30 at 15:00. Today at 14:16, it hit its target of 240 pips. In a span of five hours and 9 minutes, we accumulated 620 pips.
We still need to focus on the basic of cutting our losses short and letting our profits run. We are Swing Traders and we only need 45% winning percentage to be profitable. Forty five percent is a failing grade in school but with swing trading methodology, we will out live the scalpers with 95% winning percentage. Wealth accumulation takes time and we are taking baby steps to get there.
Presently, we still have one more buy trade open with 180 pips in floating profit. See graph below.
Today was an excellent day for Haley as three GBPUSD buy trades hit their targets. The first to hit its take profit was Haley’s subsystem 8, which opened the buy trade on July 30 at 12:00. At 09:07 today, it hit its take profit of 180 pips. Roughly, four hours later, subsystem 5 hit its target of 200 pips. This is sweet!
The best trade was Haley’s subsystem 3 which open its buy trade on July 30 at 15:00. Today at 14:16, it hit its target of 240 pips. In a span of five hours and 9 minutes, we accumulated 620 pips.
We still need to focus on the basic of cutting our losses short and letting our profits run. We are Swing Traders and we only need 45% winning percentage to be profitable. Forty five percent is a failing grade in school but with swing trading methodology, we will out live the scalpers with 95% winning percentage. Wealth accumulation takes time and we are taking baby steps to get there.
Presently, we still have one more buy trade open with 180 pips in floating profit. See graph below.
Bilagor:
Medlem sedan Apr 20, 2010
814 inlägg
Aug 03, 2010 at 02:46
(redigerad Aug 03, 2010 at 02:47)
Ahh.. ya, my mistake on calculation again. Is 1.758% estimation.
But the real performance seem better as not just trade only on EurUsd.
Total 3 EA ROI = 4290.10/30k = 14.03%.
So is still far good from expected. How about other 2 EA ? Got data on July ?
But the real performance seem better as not just trade only on EurUsd.
Total 3 EA ROI = 4290.10/30k = 14.03%.
So is still far good from expected. How about other 2 EA ? Got data on July ?
Information is Gold when come to organised.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 03, 2010 at 05:36
Mellisa: -1,073 pips with 88 closed trades, approximately -10.7%.
Sienna: -463 pips with 121 closed trades, approximately -4.6%
Users can pick and choose which system they like or a combination of systems to diversify. It is best to use a system when it is losing not when it is winning. But if you are using multiple systems then they will balance each other out in the long run.
Sienna: -463 pips with 121 closed trades, approximately -4.6%
Users can pick and choose which system they like or a combination of systems to diversify. It is best to use a system when it is losing not when it is winning. But if you are using multiple systems then they will balance each other out in the long run.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 03, 2010 at 07:54
When I first started trading, I thought that I was cursed. Every single trading system that I came across would fail after I signed up. This happened to me more than a dozen time. After more than six years of trading and developing my own trading systems, I finally understand why it was.
When a trading system was winning, the words would get out, more people sign up as the system continued to win. Once, I sign up, the system has gone through a long period of winning; hence, it is natural for the system to give some back i.e. drawdown. You must understand that drawdown is the risk in trading, and that risk & reward go together. You can't have the reward without the risk in trading.
If you know that the maximum drawdown of a system is 4,000 pips, it is best to enter the system after it started losing approximately 2,000 pips. This way you know that your maximum drawdown is 2,000 pips to your account before the system recover.
I hope that this make sense.
When a trading system was winning, the words would get out, more people sign up as the system continued to win. Once, I sign up, the system has gone through a long period of winning; hence, it is natural for the system to give some back i.e. drawdown. You must understand that drawdown is the risk in trading, and that risk & reward go together. You can't have the reward without the risk in trading.
If you know that the maximum drawdown of a system is 4,000 pips, it is best to enter the system after it started losing approximately 2,000 pips. This way you know that your maximum drawdown is 2,000 pips to your account before the system recover.
I hope that this make sense.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 04, 2010 at 04:14
August 3, 2010 Update
Looking at the last five trades of Jasmine, we had five winning trades and one losing trade. From the four winning trades, we have one trade at +116 pips, another at +149 pips, and two trades hitting their target at +220 and +240 pips. These four winning trades combined for a total of 725 pips. Of these winnings, we had to take away 80 pips for a losing trade that got stopped out. Still we gained 645 pips for the last 5 closed trades.
Jasmine is now at 3,000 pips profit, and I hope that she can keep it steady above this level.
Currently, Jasmine’s subsystems 1 & 3 are in sell trades. Let’s follow up on their progress tomorrow.
Looking at the last five trades of Jasmine, we had five winning trades and one losing trade. From the four winning trades, we have one trade at +116 pips, another at +149 pips, and two trades hitting their target at +220 and +240 pips. These four winning trades combined for a total of 725 pips. Of these winnings, we had to take away 80 pips for a losing trade that got stopped out. Still we gained 645 pips for the last 5 closed trades.
Jasmine is now at 3,000 pips profit, and I hope that she can keep it steady above this level.
Currently, Jasmine’s subsystems 1 & 3 are in sell trades. Let’s follow up on their progress tomorrow.
Bilagor:
Medlem sedan Jun 23, 2010
303 inlägg
Aug 05, 2010 at 04:59
August 4, 2010 Update
Today we have a Mexican Standoff with Jasmine’s six subsystems. Subsystems 1, 4, and 6 are in buy trades at 1.32068, 1.32055, and 1.31656. These 3 EURUSD buy trades combined for a floating loss of 135 pips. On the other hand, subsystems 3, 7, and 8 are in sell trades at 1.31796, 1.31549, and 1.31550. These 3 EURUSD sell trades combined for a floating profit of 40 pips. The situation is too early to tell which direction is correct.
Let’s see what will happen tomorrow.
Today we have a Mexican Standoff with Jasmine’s six subsystems. Subsystems 1, 4, and 6 are in buy trades at 1.32068, 1.32055, and 1.31656. These 3 EURUSD buy trades combined for a floating loss of 135 pips. On the other hand, subsystems 3, 7, and 8 are in sell trades at 1.31796, 1.31549, and 1.31550. These 3 EURUSD sell trades combined for a floating profit of 40 pips. The situation is too early to tell which direction is correct.
Let’s see what will happen tomorrow.
Bilagor:
Medlem sedan Jun 23, 2010
303 inlägg
Aug 06, 2010 at 04:15
August 5, 2010 Update
Our Mexican Standoff resulted in little actions for Jasmine. The 3 subsystems that were in the EURUSD sell trades exited their trades with +6 pips, -3 pips, and 52 pips. Presently, we have five subsystems in five buy trades of the EURUSD. We are still in holding pattern, but it is nice that we are floating with 133 pips in profit.
I am looking for Jasmine to break the 3,500 pips profit within the next two weeks. Let’s wait and see.
Our Mexican Standoff resulted in little actions for Jasmine. The 3 subsystems that were in the EURUSD sell trades exited their trades with +6 pips, -3 pips, and 52 pips. Presently, we have five subsystems in five buy trades of the EURUSD. We are still in holding pattern, but it is nice that we are floating with 133 pips in profit.
I am looking for Jasmine to break the 3,500 pips profit within the next two weeks. Let’s wait and see.
Bilagor:
Medlem sedan Jun 23, 2010
303 inlägg
Aug 07, 2010 at 20:48
Below are the trading results of my five expert advisors for past two and a half months,
Haley = +2,229 pips
Jasmine = +3,054 pips
Leah = +2,234 pips
Mellisa = -1,621 pips
Sienna = -700 pips
You have requested discount for forex trading accounts with less than $2,500. I have heard your concerns, and I have added the mini service to accommodate your needs.
Using our trading systems:
1) Our software is targeting 40% return per annum. You can adjust the trading lot size for more aggressive return to accommodate your trading objective i.e. 120% per year. You must understand that higher return will results in high risk since risk & reward go together.
2) You must always plan for the worse drawdown. Alternatively, it is best to enter a system after it has gone through some drawdown.
3) You must be discipline to follow a trading system, and it is best not to jump from one system to another.
4) It is best to enter our systems during their consecutive losing trades and not during the consecutive winning trades.
Haley = +2,229 pips
Jasmine = +3,054 pips
Leah = +2,234 pips
Mellisa = -1,621 pips
Sienna = -700 pips
You have requested discount for forex trading accounts with less than $2,500. I have heard your concerns, and I have added the mini service to accommodate your needs.
Using our trading systems:
1) Our software is targeting 40% return per annum. You can adjust the trading lot size for more aggressive return to accommodate your trading objective i.e. 120% per year. You must understand that higher return will results in high risk since risk & reward go together.
2) You must always plan for the worse drawdown. Alternatively, it is best to enter a system after it has gone through some drawdown.
3) You must be discipline to follow a trading system, and it is best not to jump from one system to another.
4) It is best to enter our systems during their consecutive losing trades and not during the consecutive winning trades.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 09, 2010 at 04:09
August 8, 2010 Update
Jasmine’s six subsystems are all in buy trades with the total floating profit of 598 pips. Let’s identify each subsystem with their stop losses and take profits.
Subsystem 4 entered the EURUSD buy trade on August 4 @ 15:00. The entry price was 1.32055 with a stop loss of 100 pips and a take profit of 220 pips. It is currently floating with 80 pips profit.
Subsystem 3 entered the EURUSD buy trade on August 5 @ 09:00. The entry price was 1.31262 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 159 pips profit.
Subsystem 8 entered the EURUSD buy trade on August 5 @ 10:00. The entry price was 1.31492 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 136 pips profit.
Subsystem 7 entered the EURUSD buy trade on August 5 @ 18:00. The entry price was 1.31570 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 128 pips profit.
Subsystem 6 entered the EURUSD buy trade on August 5 @ 19:00. The entry price was 1.31620 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 123 pips profit.
Subsystem 1 was the last to enter the EURUSD buy trade on August 6 @ 16:00. The entry price was 1.33157 with a stop loss of 80 pips and a take profit of 260 pips. This trade is currently floating at a loss of 30 pips.
Throw away your indicators! Expert advisors are the future of trading.
See attached proof:
Jasmine’s six subsystems are all in buy trades with the total floating profit of 598 pips. Let’s identify each subsystem with their stop losses and take profits.
Subsystem 4 entered the EURUSD buy trade on August 4 @ 15:00. The entry price was 1.32055 with a stop loss of 100 pips and a take profit of 220 pips. It is currently floating with 80 pips profit.
Subsystem 3 entered the EURUSD buy trade on August 5 @ 09:00. The entry price was 1.31262 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 159 pips profit.
Subsystem 8 entered the EURUSD buy trade on August 5 @ 10:00. The entry price was 1.31492 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 136 pips profit.
Subsystem 7 entered the EURUSD buy trade on August 5 @ 18:00. The entry price was 1.31570 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 128 pips profit.
Subsystem 6 entered the EURUSD buy trade on August 5 @ 19:00. The entry price was 1.31620 with a stop loss of 100 pips and a take profit of 240 pips. It is currently floating with 123 pips profit.
Subsystem 1 was the last to enter the EURUSD buy trade on August 6 @ 16:00. The entry price was 1.33157 with a stop loss of 80 pips and a take profit of 260 pips. This trade is currently floating at a loss of 30 pips.
Throw away your indicators! Expert advisors are the future of trading.
See attached proof:
Bilagor:
Medlem sedan Jun 23, 2010
303 inlägg
Aug 10, 2010 at 04:28
August 9, 2010 Update
Subsystem 4 entered the EURUSD buy trade on August 4 @ 15:00. The entry price was 1.32055 with a stop loss of 100 pips and a take profit of 220 pips. It finally closed its buy trade today August 9 @ 14:00 with 37 pips. It is not too bad as the EURUSD has dropped more than 125 pips.
Subsystem 3 entered the EURUSD buy trade on August 5 @ 09:00. The entry price was 1.31262 with a stop loss of 100 pips and a take profit of 240 pips. It closed its buy trade for 158 pips on August 9, 2010 @ 08:00.
Subsystem 6 entered the EURUSD buy trade on August 5 @ 19:00. The entry price was 1.31620 with a stop loss of 100 pips and a take profit of 240 pips. It also closed its buy trade for 80 pips on August 9, 2010 @14:00.
As we are updating the daily results, subsystem 3 has sold the EURUSD at August 9, @08:00 and exited its trade with 69 pips profits on August 10, @ 02:00.
We could have done better, but we should be happy with 344 pips profit for the last four trades.
Subsystem 4 entered the EURUSD buy trade on August 4 @ 15:00. The entry price was 1.32055 with a stop loss of 100 pips and a take profit of 220 pips. It finally closed its buy trade today August 9 @ 14:00 with 37 pips. It is not too bad as the EURUSD has dropped more than 125 pips.
Subsystem 3 entered the EURUSD buy trade on August 5 @ 09:00. The entry price was 1.31262 with a stop loss of 100 pips and a take profit of 240 pips. It closed its buy trade for 158 pips on August 9, 2010 @ 08:00.
Subsystem 6 entered the EURUSD buy trade on August 5 @ 19:00. The entry price was 1.31620 with a stop loss of 100 pips and a take profit of 240 pips. It also closed its buy trade for 80 pips on August 9, 2010 @14:00.
As we are updating the daily results, subsystem 3 has sold the EURUSD at August 9, @08:00 and exited its trade with 69 pips profits on August 10, @ 02:00.
We could have done better, but we should be happy with 344 pips profit for the last four trades.
Bilagor:
Medlem sedan Jun 23, 2010
303 inlägg
Aug 12, 2010 at 04:57
August 11, 2010 Update
It was a roller coaster ride for everyone during the past two days with all the slow down in economic announcements. What does this mean for the technical traders and automated trading systems? Not much really! We need news to create volatilities in the market regardless of bad or good news. Leave it to the fundamentalists to decipher the meaning of each announcement.
There are technical traders who try to mix fundamental news with their short term trading. You have to remember that fundamental news create long term trend and cannot be mixed with short term technical trading. The best thing is to focus on the chart and don’t get caught on the wrong side of the trade without a stop loss. It is uncanny to be more than 60% correct after 1,000 trades; hence, don’t bother trying to out-wit the market. As you are trying to out-wit others, there are smarter and brighter traders out there trying to out-wit you!
We haven’t covered Leah for a while; hence, we will talk about it today. Leah is vacillating between 2,000 pips profit and 3,000 pips profit for the last four weeks. The past several days, Leah's profit has dropped more than 600 pips. This is to be expected as it is impossible to have a linear rise in profit without drawdown. This is the reason why, we should look at return on investment ROI based on yearly results not monthly or weekly. One of the common mistakes of automated trading users is to switch from one trading system to another as they experience some drawdown. This is the cardinal sin! You should pick a trading system and stick with it for at least four months. The best time to turn on a trading system is when it is losing and not when it is winning.
As it stands, Leah is still up 2,000 pips for the last 2.5 months. It is currently in a sell trade with 165 pips floating profit. See chart below:
It was a roller coaster ride for everyone during the past two days with all the slow down in economic announcements. What does this mean for the technical traders and automated trading systems? Not much really! We need news to create volatilities in the market regardless of bad or good news. Leave it to the fundamentalists to decipher the meaning of each announcement.
There are technical traders who try to mix fundamental news with their short term trading. You have to remember that fundamental news create long term trend and cannot be mixed with short term technical trading. The best thing is to focus on the chart and don’t get caught on the wrong side of the trade without a stop loss. It is uncanny to be more than 60% correct after 1,000 trades; hence, don’t bother trying to out-wit the market. As you are trying to out-wit others, there are smarter and brighter traders out there trying to out-wit you!
We haven’t covered Leah for a while; hence, we will talk about it today. Leah is vacillating between 2,000 pips profit and 3,000 pips profit for the last four weeks. The past several days, Leah's profit has dropped more than 600 pips. This is to be expected as it is impossible to have a linear rise in profit without drawdown. This is the reason why, we should look at return on investment ROI based on yearly results not monthly or weekly. One of the common mistakes of automated trading users is to switch from one trading system to another as they experience some drawdown. This is the cardinal sin! You should pick a trading system and stick with it for at least four months. The best time to turn on a trading system is when it is losing and not when it is winning.
As it stands, Leah is still up 2,000 pips for the last 2.5 months. It is currently in a sell trade with 165 pips floating profit. See chart below:
Medlem sedan Jun 23, 2010
303 inlägg
Aug 13, 2010 at 05:46
August 12, 2010 Update
I am currently reading the Art of the Advantage, 36 Strategies to Seize the Competitive Edge by Kaiban Krippendroff. In the first stratagem, he goes into the example of competitive pattern between Coca-Cola & Pepsi. I thought it was wonder, and it can be use as an analogy for forex automated trading. In the book example, Coca-Cola innovates, Pepsi copies, Pepsi innovates, Coca-Cola copies, and the competitive pattern repeats. Coca-Cola and Pepsi play cat and mouse with each other, following closely, but never falling too far behind. When one lurches forward, the next pounces...but the pounces are NEVER FATAL.
The key lesson here is that each pounce is never fatal. Similar to automated trading, we are not looking to have a single trade that is going to yield us 2,000 pips profit or to make us rich instantaneously. Alternatively, we always trade with a stop loss such that one losing trade will not wipe out our entire trading account, i.e. the fatal pounce. Think of it as a give and take in Forex trading. We can’t win all the time and constantly take money from the market. We have to give some back as it is a back and forth relationship. Think of it as a dance but with automated trading, we are leading. We win some, give some back, we win some more, and then we give some back. The point is to respect the market and to avoid dealing the fatal blow to each other. Remember, it is a dance, and we are leading; hence, we will make money if we are patient.
As we stand, Haley is currently at $12,560 in equity. This is 2,560 pips profit over the period of 2.5 months. During this 2.5-month period, Haley dances with the market with winning and losing trades. Haley went from $10K to $12K, back to $11K, then to $12.5K, back to $12K and now at $12.5K. We should think of trading as a long term relationship with the market. We can’t take an enormous withdraw from the market without future consequences. It is better to give and take with a net profit in the long term.
I am currently reading the Art of the Advantage, 36 Strategies to Seize the Competitive Edge by Kaiban Krippendroff. In the first stratagem, he goes into the example of competitive pattern between Coca-Cola & Pepsi. I thought it was wonder, and it can be use as an analogy for forex automated trading. In the book example, Coca-Cola innovates, Pepsi copies, Pepsi innovates, Coca-Cola copies, and the competitive pattern repeats. Coca-Cola and Pepsi play cat and mouse with each other, following closely, but never falling too far behind. When one lurches forward, the next pounces...but the pounces are NEVER FATAL.
The key lesson here is that each pounce is never fatal. Similar to automated trading, we are not looking to have a single trade that is going to yield us 2,000 pips profit or to make us rich instantaneously. Alternatively, we always trade with a stop loss such that one losing trade will not wipe out our entire trading account, i.e. the fatal pounce. Think of it as a give and take in Forex trading. We can’t win all the time and constantly take money from the market. We have to give some back as it is a back and forth relationship. Think of it as a dance but with automated trading, we are leading. We win some, give some back, we win some more, and then we give some back. The point is to respect the market and to avoid dealing the fatal blow to each other. Remember, it is a dance, and we are leading; hence, we will make money if we are patient.
As we stand, Haley is currently at $12,560 in equity. This is 2,560 pips profit over the period of 2.5 months. During this 2.5-month period, Haley dances with the market with winning and losing trades. Haley went from $10K to $12K, back to $11K, then to $12.5K, back to $12K and now at $12.5K. We should think of trading as a long term relationship with the market. We can’t take an enormous withdraw from the market without future consequences. It is better to give and take with a net profit in the long term.
Medlem sedan Jun 23, 2010
303 inlägg
Aug 14, 2010 at 03:18
Friday, August 13, 2010 - Happy Friday the 13th to everyone!
After the huge move on Tuesday, the market is consolidating. Leah’s subsystem 7 entered a sell EURUSD trade on August 13 @ 16:00. The entry price was 1.28244 with a stop loss of 100 pips and a take profit of 240 pips. The trade is profitable with 66 floating pips. Leah’s subsystem 8 entered the EURUSD sell trade 4 hours later at 20:00 at 1.27755 with a stop loss of 100 pips and a take profit of 240 pips. This trade is also profitable with 19 floating pips.
After the huge move on Tuesday, the market is consolidating. Leah’s subsystem 7 entered a sell EURUSD trade on August 13 @ 16:00. The entry price was 1.28244 with a stop loss of 100 pips and a take profit of 240 pips. The trade is profitable with 66 floating pips. Leah’s subsystem 8 entered the EURUSD sell trade 4 hours later at 20:00 at 1.27755 with a stop loss of 100 pips and a take profit of 240 pips. This trade is also profitable with 19 floating pips.
