Another Strategy

1) RSI exceeds 65 / 35

2) RSI crosses back into band

3) RSI reach 50 (and current value compared to value when RSI is out of range is in the right direction)

Stop Loss:

Extreme of the bar which first results in the RSI to exceed 65 / 35

OR

Fixed value (e.g. 100)

OR

RSI falls back out of the channel on the same side and position is currently losing money

What’s happening to WordPress?

Wow, what’s the problem with WordPress these 2 days… I’ve been having sooooooooooo much problems logging in…. anyway, another strategy to try…. simple and straight forward…. now that I’m more familiar and comfortable with MQL, this should be relatively easy to program….

1) Previous 30 bars below (200?) MA
2) MA Short Term < MA Long Term
3) Breaks above (200?) MA (on watchlist now)
4) Break back down within 10 bars

Which EA would you choose?

I’m currently comparing the following 4 EAs… 3 of them are written by myself… (well, actually the three EAs are very similar to each other in terms of strategy, differing more in terms of their parameters) while the 4th is a commercially available EA….

Here’s the backtest results of the 4 EAs (all based on an initial deposit of $3000), which would you choose?

EA 1
Profit = 65067.85
Absolute Drawdown = 1148.78
Maximum Drawdown = 24261.06 (26.38%)
Relative Drawdown = 3284.37 (63.95%)
% Profit Trades = 64.34%

EA 2
Profit = 66192.86
Absolute Drawdown = 2490.66
Maximum Drawdown = 26020.04 (27.51%)
Relative Drawdown = 7367.36 (93.53%)
% Profit Trades = 66.30%

EA 3
Profit = 616088.27*
Absolute Drawdown = 1863.44
Maximum Drawdown = 428440.76 (48.17%)
Relative Drawdown = 13798.68 (92.39%)
% Profit Trades = 66.21%

EA 4
Profit = 18313.39
Absolute Drawdown = 1853.44
Maximal Drawdown = 5294.85 (21.90%)
Relative Drawdown = 4945.47 (81.18%)
% Profit Trades = 54.10%

*  Note: This is not a typo. EA 3 profit is about 10 times the previous 2.

Now for the real thing…

Ok, I’m now ready to start a forex account…… 010908

Optimisation

I don’t know how to optimise my EA… I mean, I know how to use the optimisation feature on MT4, but I don’t know

1) How often should I optimise the EA?
2) How many months of historical data should I use for optimisation….?

I did an analysis of optimization, by using a fixed starting date (June 2004) and a variable ending date that ranges from Apr 2005 to Aug 2008 (I randomly selected a few ‘End Dates’ from that range). To my surprise, I find that more often than not, the parameters that I get from optimization are constant (Stop Loss = 140, Trailing Stop = 110). In cases where I got a different result, I used those parameters for next month’s testing and found that the results were not as good as without optimization.

So, what does this say?

1) SL = 140 and TS = 110 is the best parameter for my EA?
2) I’m doing something wrongly?

I mean, how to go about optimizing the EA to make it more suitable for market conditions. Given that EURUSD was in a downtrend in 2005 but in an uptrend after that, is it normal for my parameters to stay the same? Is this consistency normal?????