Quote:
Originally Posted by jlpi
I would say that for this kind of EA you need to see it working in forward test minimum 3 months (6 months better) because you need to see how it will react on large unwinds.
The current unwind that is not very large until now put anway a good hit on the statement but such kind of events occur not so often.
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This was one of the biggest unwinds in the past year or so for this kind of strategy. It does not matter how big moves are. What matters is when USDJPY goes opposite direction to EURCHF. If they go against each other for too long then the EA gets hit by series of stop losses.
Now, this happened back in June and it killed the account (old version). The new version just scarified gains of the past month or so, but account is ok.
Yes, this can happen once in a while. You are free to watch the demo for as long as you want to see the profitability. I believe it will recover losses within 2 - 3 weeks (meaning it will be again 14% in profit, and more) - supposing another hit like that would not occur soon.
Sooner or later it will come again, but it happens only 2 - 3 times in a year. But obviously, we cannot guarantee that, we just learn from the past...
Additionally, the graph does not look so good, but when we put it in numbers it is like this: the highest balance was around $57,700, then it dropped to around $48,000, i.e. lost $9,700.
In per cents it counts 16.8% loss. That is not bad at all considering this is one of biggest hits it can get (comparing to the past) - and old version killed account in similar situation.
It can easily happen that such situation would not occur at all in the next 6 months... Let's see.