Real market algo trading

[Likhazar]

Hi,

My name is Bart. I build and use algos on FX markets.

Here I will publish:

1. transactions that are carried out by my strategies
2. weekly capital curve

Below first curve from last week.

 

[Likhazar]

Our capital curve from last week (15.04 - 19.04)

Soon, I will describe our approach to trading and describe main principles of our strategies, so click "subscribe"

I also added to myfxbook one of our newly created strategies which is in a phase of incubation on real market.

 

[NVP]

can you define "clutter" ?....why not set the thread up not to accept any posts / responses ?

 

[Likhazar]

can you define "clutter" ?....why not set the thread up not to accept any posts / responses ?

What I mean by "clutter" is do not ask offtopic questions. If someone want to ask any question about my algos then ask.

 

[Likhazar]

I wish to share one of my trades from yesterday.

On EURJPY EA is currently looking for shorts and a failure of local bottoms.
In the picture below you can see that yesterday such a failure had place which gave opportunity to short sell and to flow with the momentum.
This trade was closed with 34 pips profit.

 

[Panic!]

Can you label the axes?

 

[Likhazar]

Hi,

Today I will briefly describe strategy which is connected to myfxbook.
As I said before this strategy is in phase of incubation.

It is trend following strategy which is based on failures of last tops/bottoms.

Other rules:

1. All positions must be closed at the end of the session.
2. Use Breakeven.
3. No Take Profits.

Why such rules?
Let’s start one by one.

1. Why I close all positions at the end of the session?

Because:

• Swap is additional cost.
• Lower liquidity during night (higher probability for flash crash)
• New day – new opportunities.

2. Why I use a Breakeven?

• No sense in staying in the undecided market.
• Low profit is better than low loss.

3. Why I don’t use Take Profits?

• No one can predict if directional move takes 20 or 200 pips.
• Black swans really exist.
• “Cut losses and let profits run”.

Money management in this strategy for now is set as below:

1. Max DD: 50%
2. Max risk per trade: 3%

After I accept strategy, I change MM to lower values.

 

[Likhazar]

Hi,

Today I will present two trades from yesterday.

EURAUD:
As you see below, the trend was UP and EURAUD made a false breakout of last resistance. This trade bring loss -30 pips.

EURJPY:

On EURJPY we have a downtrend. Price break through last support and keep moving with the trend. Trade was closed at the end of our trading session with 60 pips profit.

Have a nice weekend

 

[Likhazar]

"Trading is simple, but not easy". Just wait patiently for this one proper trend. But in practice, patience loses with greed. People want to earn fast, which is why they open many meaningless transactions.

 

[Likhazar]

Another week passed, so it is time for capital curve of the week.
Friday move on GBPUSD paid for everything, so again

Below is capital curve for whole April:

 

[Likhazar]

After 7 profitable weeks finally came the lossy, luckily small Each series has its end. This is the basis of a statistical approach. Losing days, weeks or months is something normal. The long-term result counts, because

 

[Likhazar]

So, as I said


Below some examples of yesterday's trades:

EURJPY

GBPJPY

GBPUSD

USDJPY

 

[Likhazar]

Some thougths about trading:

# 1 [EN] The worst thing you can do when choosing a given investment / investment project is to be unprepared.
Risk - the most important issue. We often forget about it at the very beginning and we remind you when it is too late. Remember, the more profits you expect, the more risk you have to take. There is no risk-free investment, no one knows what will happen in the future, and despite the best intentions, a given project may fail. So before investing your funds, answer the question: will you feel comfortable in a situation where you would lose them? If not - it means that the risk is too high, look for investments that are consistent with your character. Remember that in the world of investment only you are responsible for your finances for generated profits and losses, so you have to understand and accept the risk.

 

[NVP]

the secret is to never expect profits .....i teach traders to expect losses and prepare for them by minimising high risk trades and exiting swiftly .......

Expert defence eventually means profits will accrue ......I agree on the few trades funding a lot of the losing trades .....but you have to have a good exit strategy to let things run

what is your exit strategy L ?

 

[Likhazar]

the secret is to never expect profits .....i teach traders to expect losses and prepare for them by minimising high risk trades and exiting swiftly .......

Expert defence eventually means profits will accrue ......I agree on the few trades funding a lot of the losing trades .....but you have to have a good exit strategy to let things run

what is your exit strategy L ?

I actually have 3 scenarios for every trade:
1. Stop Loss - when price quickly goes against me
2. Breakeven - when price slightly move in my favour but there is no more "fuel" to go further and is going back to entry point.
3. Close at the end of session.

What is most important:
NO Take profits - “Cut losses and let profits run”

 

[CertainWay]

Some thougths about trading:

# 1 [EN] The worst thing you can do when choosing a given investment / investment project is to be unprepared.
Risk - the most important issue. We often forget about it at the very beginning and we remind you when it is too late. Remember, the more profits you expect, the more risk you have to take. There is no risk-free investment, no one knows what will happen in the future, and despite the best intentions, a given project may fail. So before investing your funds, answer the question: will you feel comfortable in a situation where you would lose them? If not - it means that the risk is too high, look for investments that are consistent with your character. Remember that in the world of investment only you are responsible for your finances for generated profits and losses, so you have to understand and accept the risk.

Very valuable useful comments. These questions must be asked before every trade. When we trade with minimal risk which puts us in a comfortable, relaxed zone, then we can remain objective throughout the time we are in that trade.

 

[CertainWay]

the secret is to never expect profits .....i teach traders to expect losses and prepare for them by minimising high risk trades and exiting swiftly .......

Expert defence eventually means profits will accrue ......I agree on the few trades funding a lot of the losing trades .....but you have to have a good exit strategy to let things run

what is your exit strategy L ?

I find that if I focus too much on profits, my process suffers. Each time I decide to take a trade I know where I want to exit and what my risk is. Once I know that, my focus if it's on executing and managing the trade(process) then everything else will go smooth. I do agree with what you're talking about regarding expert defence. I feel taking off partials to cover costs, commissions etc, is a good way to trade. It also gives confidence and minimizes risk on the rest of the position.

 

[Likhazar]

Last week I had 92% win rate, which gave me a profit of 705 pips.

 

[J_C_Anderson]

It is a great win rate, this strategy could generate great profit in case of proper risk-reward ratio.

For sure, it is important to focus on execution and not on the results. As professional traders often say, profit is only figures on your screen untill you withdraw it, so it is necessary to avoid all related emotions that could influence trading decisions and trading performance in general.
Sizing is one of the most complicated elements of trading. At the same time, proper sizing allows to increase profit substancially, while mistakes would lead to huge losses. Each trader should know how to "work with the position" - add more lots or close the position partially.

 

[Likhazar]

Some trading rules:

01. Consciousness is very important in trading. Without proper understanding, we must not open positions on the stock market. The first rule is to understand that there is nothing certain about the stock market. The stock market is a changing environment, where only the past is certain and the future can not be guaranteed. We only have a CHANCE to achieve above-average profits.