Hi patrick, I am evaluating your great product in Demo mode so as to buy it straightforward after. Two key questions, probably correlated between them: 1) In backtesting is TP FX 2 running always in "composed" mode? in the sense: Equity sum up step by step and increase the size of the orders? 2) Currently I do not find any parameter to increase the size of my orders, and if I increase the Investement % there is no difference in absolute result. Would it change in the live version? Where can I change size/risk? Thank you
Hello fbonzio,
Thank you for your kind words.
1) I am not sure I understand the first question. You may set the "# of hedged order" to 0, so bot will always open just one order, if it goes the wrong direction, it won't open any more orders.
2) This happens because you are testing with very small account. If your account size is $1000 or less, then the first order it will always be 0.01. You either have to increase your account or reduce number of hedged orders as this depends also on how many order you want to open and what you want finally risk (all order together), as explained in "how it works":
Investment in % Pipstep * Max Hedged Order + Pipstep * 2 = Risk % of actual Equity.
This will set the SL of all orders on a price level, when it hits SL the amount you will lose it will be the "Investment in %" of your actual equity.
Hope it helps!
Thank you Patrick, I apologize if I do not get, by now, the full logic of the robot, but hopefully I will improve. First question is simpler than that: when you set the total investment at, say, 1% of equity, during the backtesting session, of course, equity increases. is 1% referring to total equity at the moment of opening the order ? or to initial one? Second question: I had your same idea to increase from 1000 to 5000€ in order to see the difference: apparently nothing. In backtest EURUSD 1H from 31/5 to 24/10, same identical gain. A extraordinarily good one, that's the good news: your machine is really strong and resilient. But same number in Euro for 1000€ or for 5000€ backtesting account!! Thank you
You are right Patrick, if you increase significantly the size of your account, the result changes. But there shoud be some side effect: with an account of €1000 you get roughly 560€ (in just 4,5 months!) but with one of 25.000 € you get 1125€. Not bad, but I am missing something. Probably I have to increase at the same time the maximum number of hedged orders.....
Last simulations: 25k account, EURUSD H1, 31/5-24/10, first simulation 5 max hedge orders, 2% investment, 4% drowdown -> 1125€ of profit. Second simulation: 4 max hedge orders, 1% investment, 4% drowdown -> same identical profit......... I am missing something, probably in the Grid approach
Yes, you miss something, it is not a grid system, it is a kind of hedged martingale. No matter how many orders you set, if there are not needed, they will not open, that why is the result the same.
if you give me an email, I can send you an interesting Excel where i recapped the result of different simulations on 3 pairs, and its sensitivity to volume parameters and account size..... very interesting and somehow difficult to explain. Nevertheless, really fantastic work, I will surely buy it and sugget it to a large number of individual traders.....
No need, we have ran millions of backtests :) Good luck and happy trading!
Thank you Patrick, but still one last key question, hope you get its relevance to us users: why on EURUSD with a 1000€ account and with a 5000€ account I get same results? 1% or 2% investment, 4/5/6 orders, always same identhical 563€ profit result in all (all!) cases. It does not make sense...
This is normal as the smallest volume you may trade is a micro lot = 0.01 lots = 1000 Units. Because the volume is calculated on the actual equity, $1000 or $5000 doesn't change anything by 1-2%, you will have either to increase the investment in % to 5% or increase the account size. Check the volume size in history, you will better understand.
More hedged order doesn't mean more profit, it means most of the time more drawdown. Even if you put 100 orders, the result for the same period will be the same if there is no need to open a 4th or a 5th order to hedge the first drive order. Check the history to understand how the hedge order hedging the first drive Order.
Ok Patrick, thank you I will do that
Maybe I am wrong, but I went thru the history, and I came to this possible explanation. The size of the orders are directly linked to your account size and maxmum investment, clearly. You undelined that. But apparently there is no usage of account leverage. For instance, I have a 1:500 leverage on ICmarkets, that could make it possible to open much larger orders. Nevertheless, the size of the orders are actually very small 1k-3k maximum....... therefore I see the effects are always similar.....
You are wrong indeed, the size it is linked to the actual account size, see code:
/**************************************
* Calculate Volume for drive order
***************************************/
privatedouble GetVolume()
{
double risk_amount =Math.Round(Risk_Perc * Account.Equity /100);
double sl_1_lot =100000* Symbol.PipValue * Pip_Step *(Max_Hedged_Orders +1);
double volume =Math.Round(risk_amount *100000/ sl_1_lot);
int unit =0;
for(int i =1; i < Max_Hedged_Orders; i++)
{
unit += i;
}
unit =(unit ==0)?1 : unit;
return Symbol.NormalizeVolumeInUnits(volume / unit);
}
Of course has leverage a usage. Just set the investment in % to 5 or 10.
I set an account of 1000€ and 5% investment: 630€ of profit from 1/6 to 27/10. (by the way: astonishing and great result!!!). But then I set a 25.000€ account and same 5% investment: same result..... I am surely wrong, and the code is absolutely clear to me, but I cannot explain the effect....
Of course you are right, and I apologize: it is the same result when you have 5% investment and 1000 or 5000 euro account. If you have a 25k account then it makes a difference and profit goes up from 630 to 1800.
Actually in % it is a much worse result than at lower level of money, but with very limited drowdown level (0,21%). Big part of the 25k account is not used at all, it is only important to set the size of the orders. So probably this is the approach of your software to money management, but possibly some more flexibility could be very useful for other users. But ok, I see it
I wanted to tell you, you seem to be a beginner, therefore play a bit more with demo account before go live and start always with small risk, you can always add on later. If you want to grow fast, go slow. Good trading!
I bought the product Patrick, it's running on Demo. Apparetly there is s slight difference betweene the FX2 live version and the demo one: the Sticky stop loss parameter is not there anymore in the live version. Is that important? I ask because the Cbot last night opened a GPBAUD position without SL, and I am wandering how SL is managed. I apologize, but I did not get how the positions SL's are managed
Obviously, the SL is managed by the robot itself. And regarding the sticky SL, the parameter in the setup files is set to true anyway, even if it is not shown in the parameter windows anymore. Sorry for the naivité of my questions, but aI prefer to ask, so as to understand.
You are right, "Sticky SL" is an old parameter not needed any more. There is a SL parameter, if you set to 0, there will no SL at all which is not recommended. Always use SL especially in leveraged markets like forex.