EurUsdDaily Robot

[7pask7]

I'm the developer of this robot.
The robot performs good on the EURUSD Daily chart.
You can choose how many Lots you want to trade starting from 0.1.
In the attachments there are the test results from 2009.01.01 to 2010.06.30 with a demo fxcm account with 1:100 leverage and the executable file of the robot.
You can test the robot and post here your impressions.
Thanks in advance to everyone that will test the robot

[rsmereka]

Thanks and Welcome,

I ran your EA as provided through a nine year backtest on an Alpari UK demo account at the default 0.10 fixed lot size. Results as attached.

Highlights:
1. 64.63% profit total over nine years, 7.18% per year
2. 9.12% maximum DD
3. 334 total trades, 37.11 trades per year, 3.09 trades per month

In the next test, I am going to run the optimizer on the lot size.

Rick

[7pask7]

Thanks for you test

Do you calculate the profit total on the 10000€ account?
I guess that this type of result is meaningless cause with the 0.1 fixed lot size you don't use all the money on your account. For example I could do the same trades with a 1000€ account and have the same profit...

I'll wait for your optimization results on the DD and your conclusions. Thanks for your time

[rsmereka]

You are Welcome,

Yes, the profit was calculated on the total profit.

The result is not meaningless but it highlights the fact that this EA really needs money management logic.

Here is the optimization report on the lot size. I started with 0.10 lots (which is pass 1) and increased 0.10 per pass so pass 10 is actually 1.0 lots.

The DD really increases as the lot size is increased. At 1.0 lots, the profit is about 544% over the nine years but the DD is almost 84% which I think you would agree is unacceptable.

This is a nice EA. I like the equity curve. Ideally, I would like to see this EA with:

1. A way to control the magic number
2. As I mentioned above, it really needs money management and I would also like to see the lot size not only calculated on the balance (or free margin ) but also tied into the ATR so that the lot size increases when the volatility increases.
3. I also hope that this EA plays nice with other possible EA's in the account by keeping track of it's orders and only modifying it's own orders.

Rick

[7pask7]

For the magic number I can make it an extern variable so you can change it as you want
It already modifies only the orders with his magic number. I guess that this changes are easy to do, so I'll release soon the next versions with this mods
For the money management I guess that there is a few work to do, if you have some suggestions I'll be glad to try them.
Thanks a lot for your time!

[rsmereka]

An extern for the magic number is the way to go.

For money management , I think you should add adnother extern double called risk. Your lot size calculation would be something like:

lots = Normalizedouble(AccountFreeMargin() * risk / SL , 2);

Where risk is the extern double and SL is the stop loss in pips.

The above assumes that risk is expressed as a fraction (eg: 2% risk would be
0.02 not 2.0) and the stop loss is expressed as five decimals (not four) so 50 pips would be 500 not 50. This brings up the issue of four/five decimal brokers. The best way to deal with this is in your EA, you have the following:

// these are globals
double pt, mt;
int dg;

int init()
{
   /* Sets up three global variables dg (digits in current pair), pt (modified point 
      factor) and mt (which is a multipler). */
   dg = Digits;

   if (dg == 3 || dg == 5)
      {
      pt = Point  * 10;
      mt = 10;
      }
   else
      {
      pt = Point ;
      mt = 1;
      }

   return(0);
}

This way, the SL can be expressed properly (eg: 50 pips is 50 not 500) and your lot size calculation would work like:

lots = Normalizedouble(AccountFreeMargin() * risk / SL  / pt, 2);

If you also wanted the lot size based on the ATR, try this instead:

atr = iATR(NULL, 0, 14, 0);
lots = Normalizedouble(AccountFreeMargin() * risk / SL  / pt / (mt * 10 * atr));

This first calculates the 14 bar ATR and then uses that volatility factor in the lot size calculation.

My math may not be perfect so please debug everything before even backtesting.

Here is an interesting Blog about MQL4 and position sizing. The author does not address the issue of the four or five decimal broker .

Rick

[7pask7]

I modified the EA, so now you can put the magic number that you prefer
In the next days I'll try to find a good money management strategy for the EA and post the new version. Have a nice day

[7pask7]

This is the EA with some money management .
You can set the variable Risk from 1 (0.1-0.5 lots) to 10 (1-5 lots).
Try it and let me know what you think about it.
In the attachments there are the test reports for the Risk set to 1,5 and 10.
Have a nice day

[rsmereka]

Thanks for the updated EA.

I ran a strategy test at risk 10 which is very close to the values that you got at risk 10 with a couple of differences:

1. your test has 8 mismatched charts errors
2. the overall profit of my test is a little lower
3. the DD of my test is way higher (there was a period early in the test when the entire account was almost blown)

I am running an optimization on the risk from 5 to 10 in 0.10 increments. I will publish it here once it finishes running.

Rick

[7pask7]

Thanks for your test, I guess that the DD is still to high...
Wich is, for you, an acceptable DD-profit ratio?
I'm trying to improve the ratio but it requires some good ideas and a lot of work.
Thanks again for your time