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12-4-08 (Margin Call)
...And there's the cliff. Saw the whole thing unravel first hand. Attached is a 1H chart with the reversal spike that did me in. Although, I could have closed down prior to any significant damage, I wanted to see the EA play itself out... and it did.
The solution, having already thought about it, is quite simple. I must accept a lower reward expectation in order to sustain such moves in the future. The one thing I noticed was that the difference between a closed for profit scenario and the blow out was 1 to 2 pips. This indicates the necessity for more slack... which equally reduces the profit output. Oh, well.
I'm going to rework some of my numbers, however, the function and methodology of the EA is sound. The account was taken out due to leverage issues, not methodology. This may sound silly, in light of today's performance, but I am extremely pleased with this EA. I feel pretty good about its performance and durability.
I will continue with the test starting next week. (1 week down, 7 more to go.)
MM
Last edited by Mr.Marketz; 12-04-2008 at 09:34 PM.
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