Hi Duyduy,

I may be wrong but when I look at your statement your equity is down to $8,000 and something. The balance looks right but only because negative trades are still open.

Can you clarify this and let me know how it is doing?

You are asking question someone else but as I am one of the authors I think I can provide qualified answer too. His current DD is -$2,600, that represents 22.85% of the account balance. It is not great situation but it happens sometimes. To keep the DD lower one should use smaller risk. When setup reasonably one can make around 20% per month with DD not more than 15% (this is based on our testing so far, we cannot guarantee that, obviously).

You can check out our demo performance (go to our website and go to Performance page). Our GBPJPY/EURCHF demo account has DD around 25% at times but also profit is higher.

Our USDJPY/EURCHF has 100% profit from Jan 22, the max DD was not more than 10% ever. That makes 25% per month in average.

Our GBPJPY/EURCHF demo has 66% profit since Mar 17. That is approx. 33% per month in average. Its DD is quite big at the moment (23.62%) but this is due to fact that GBPJPY/EURCHF is much "wilder" combination and we set up our demo quite aggressively just to find out how much it can stand. Just imagine if we used half risk, it would make 16.5% per month (I am referring to our test period now, not in general) and current DD would be 11.81%, which is ok, I guess.

Anyway, each trading strategy means one can have some DD for certain period of time. The only thing is to keep it within acceptable range. I think we can do that.

We are currently working on back tester to optimize the settings. Up to now we had to watch our demos and live accounts and optimize the settings based on forward testing. It was very slow process.

Everybody welcome to get a free evaluation copy of our EA!

When do you expect to complete this backtester?

It is nearly finished. Please PM GHamm, owner of this thread and my partner when. But the first version is working now.

Our EA is not a "black box". You can see what is going on, when trades are to be open and when exited and you have the full control over it. Everything is displayed on the chart. You know how our strategy works, what you do not know is how we do calculus internally. That is our know-how.

In fact the de facto definition of black box matches quite closely what you describe above

"Black box is a technical term for a device or system or object when it is viewed primarily in terms of its input and output characteristics."

Black box - Wikipedia, the free encyclopedia

I am ok with the definition you submitted. What I meant was that I've seen EAs that were opening trades and nobody knew why or when the orders get placed. That is not our case. You know exactly what is going on.

Besides, then every piece of software is a black box, because we do not have the source code, right?

What about progress of your backtester for the strategy?
When can we see some backtest reports?

It is stable now but can still have some little bugs. But the testing looks quite ok already. However, we are not sure how much reliable the tick data is. We are considering to buy the tick data to make sure our tests are more reliable, which is quite expensive to buy.

For now it can serve us as a picture how it goes but we are not 100% sure the tests are reliable enough.

This is the beginning and end of test report for gbpjpy/eurchf hedge. I attach the full test report. The report shows 400% in 3 months (Oct 2007 - Dec 2007). We enhanced our strategy recently and we are hoping that backtester shows correct results (or at least nearly correct)

Attached Files

tg_backtest_report.zip (18.8 KB, 15 views)