Hi IGoR,
I never cheer and aplaud any mechanical trading system before; I myself rather sceptycal with mechanical trading; I have been trading for 10 years; I know which one is working which one is not working.
Before I discussed this EA in my blog, I spent 2 months learned how PointBreak EA work and hours chatting and emailing Gagahlin about his EA.
Quote:
Originally Posted by iGoR
Hi Thunderbolt,
I have ask an important question to gagahlin:
question: 3) Most important what is your stoploss rule ?..I see a lott of floating losses, so when or what is the stoploss on them ?
answer: I use hedging technique and Pyramidyng technique:
-when the market going up, the system will add LONG position;
-when the market going down it will add SHORT posisitons.
I made my conclusions based on what gagahlin aswered me.
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What I do not like is your analysis about PointBreak EA with only 1 interview (please do not take it personal).
I just don't like your quick analysis as a Senior member of this forum and attack his trading system with only 1 interview.
From your analysis I get conculsion you do not really understand about how his EA work; which you should check with the creator more detail before come to any conlusion and posting it as a suggestion that everybody should avoid.
I read in your interview, he answered to you:
"You can called it grid trading, but not like the usual grid trading; its called pyramiding trading for multiple positions."
Which he already said PointBreak EA not the same like grid trading as you or everybody know.
(as it's difficult for you to understand his trading method, if you do not follow PointBreak EA every day)
This EA use very special Pyramiding trading strategy & Very Complicated MSP Function that follow where the market goes.
Quote:
Originally Posted by iGoR
Most important what is your stoploss rule ?..I see a lott of floating losses, so when or what is the stoploss on them ?
answer: I use hedging technique and Pyramidyng technique:
-when the market going up, the system will add LONG position;
-when the market going down it will add SHORT posisitons.
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He already answered his stop loss technique, in a way that you do not understand his method.
Let me explain carefully my analysis:
FIRST:
Your analisys mention a lot of floating losses because you ONLY saw loss position and do not look at the other directions which that make big profit; as this system using 2 directional trading.
For example: You have 1 BUY and 1 SELL and the market goes 100 pips below; you only comment about 1 position that have -100 pips loss;
BUT you do not comment on the +95 pip profit. It means the floating loss of that position ONLY -5 pip (not -100 pip).
SECOND:
You decide this EA produce very big drawdown BEFORE you try to understand his Pyramiding strategy works.... (which I really appreciate this strategy).
Means: If you have 1 position BUY and the market drop 100 pips, you get 1 BUY loss -100 pips; BUT you will get lot of SELL position that profit between 5-40 pips!!!
The EA then close all open position with PROFITABLE including that 1 buy with -100 pip loss.
All your comment only about loss; you do not comment anything about the profit positions and the loss/profit numbers;
which if you CAREFULLY look his report: every 1 loss position covered by 8X-10X profit positions.
If you carefully look at his LIVE trading report and 3.5 years back testing reports: you will find every 10 loss positions there are 80-100 positions make profit!
THIRD:
Quote:
Originally Posted by iGoR
You can use this system for a very long period of time without any problem even with very nice profits but when one gets caught in a major market reversall he can be stuck with an enourmous amount of hedged floating losses and this vor a very long period.
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About this one, you refer to ordinary grid trading you know before.
Which that grid only open 1 direction and hope the market come back before the system could close all positions and it could take years,
or cause an uncovered drawdown if the trend against your grid positions.
FOURTH:
I followed PointBreak EA almost 2 months, watched his 3.5 years of back testing videos, learned every LIVE trading report that Gagahlin provided me before tlak to anyone (and I really mention several months of his LIVE trading report; not just demo account)
I know there is ANOTHER PROCEDURE that Gagahlin called an MSP process: which PointBreak EA will move its starting up and down to take some profit during choppy market; and finally the EA will close all position with profitable.
I saw his MSP procedure works very smart in detect any reversal trend without causing very big of drawdown.
And again: This procedure solve the problem you mention above.
The EA take only days to weeks close every positions, never need more than 4-5 months to close all positions in profit at very very bad market.
For me personally, I really appreciate his trading method and how he explain in detail every profit & risk (advantage & disadvantage) using his trading system;
which as for as I know other creators only talking about unreasonable profit, minimum drawdown.
FIFTH:
He always mention everywehere in his trading manual to use conservative method, reserve the equity, and wait patiently before his EA can solve the drawdown.
Regards,
Thunderbolts