Another EA that I have been testing. It uses a theory of increasing lots to scale into positions and closes all positions at a level of profit specified by the user.

I know there are several EAs that use this multi-lot theory. This one was written by Alejandro Galindo of elcactus.com. Other people are testing other versions of multi-lot EAs.

Some people are having success with these EAs, but the problem is when you increase lot size several times and the price still goes against you. This results in large drawdowns. I think we have to find a way to reduce these drawdowns. If anyone tests out these mult-lot EAs and has any ideas or suggestions, please post them. I'm sure many people would be very interested.

Attached Files

Multi-Lot Scalper.mq4 (9.4 KB, 270 views)

For example, here is a statement. It is only two days of trading, but you can see how the EA operates. I am testing on several pairs, EUR/USD, GBP/USD and also on two relatively ranging crosses, EUR/GBP and EUR/CHF because this type of EA is safer in ranging conditions. I am also using different pip spacing and TP levels just to get a feel for what seems to work best.

You can also see the problem of drawdown that you will encounter, especially with a volatile pair like GBP/USD.

Maybe we can improve this EA.

Attached Files

Multi-Lot Statement.htm (51.7 KB, 307 views)

Eric: I have been testing Alejandro's version, and this Fabio Lio's version who basically stole Alejandro's EA and made some small changes to it.

I have been testing for a couple of wks now, and its exactly like you say with the big draw down. I was running it on the GBP/JPY pair, and was up 3,100 pips in less than 1.5 days, and in 2 hrs It lost -2000 pips, so it can lose fast big time.

I talk to Alejandro via email and he said to never trade 24 hrs/day, and only trade sideways markets, that it. He uses the 15min chart.

But I am willing to try different ideas, and with all the good programmers here, we might be able to improve on it.
George

George you make some good points. That leads to two ideas that might help this EA.

1) Maybe some piece of code where the user could input certain hours of the day to trade. I recall that the Kijun-Sen EA had this feature since it was designed only to trade at certain times.

2) The sideways market. This seems to be the key. If we could identify a sideways market and filter the EA so that it only trades during those times ... But that may be harder than it sounds. As hard as it is to identify trending periods ... could be the same problem trying to identify sideways periods.

One other thing comes to mind. If we use a feature that turns the EA off and on from time to time, what happens to the trades that are open when the EA turns off? We would have to make sure that the EA still manages those trades even though it is set to not start fresh again.

Eric: The way the EA runs right now, its very high risk. Today my MLS went down to -$5,800.00(5800 pips) in 1 day because the 5 open trades(1,2,4,8,& 16 lots)were buys and going the opposite way the market was going, and ya thats a big hit, even though it is demo. On a real account you would have a heart attack at least three times/week.

George

LOL!! No kidding! It would be great if there was a way to avoid that. Who knows, we'll see.

if I remember correctly this EA is counter trend so if you are going to run this try smaller Timeframes, smaller targets and use a stop a not too wide stop that way you will see what this EA really can do for you with out having a heart attack 3 times a week

EK

I don't know about the other multi-lot EAs that are floating around, but the one that I posted is not counter trend. It has a very simple MACD entry: if higher than previous=buy, if lower=sell. But your comments about timeframes, targets and stops are valid. They are all variables that need to be considered.

For anyone interested, here is one week on a demo account. Running 24/7. In the end it did quite well. But the floating loss got to be quite large at various times throughout the week.

I would not trade this live. There will come a time when you have all your doubles open and the price will still not retrace enough to close. But there still may be ways to improve this EA. For now it is just fun to watch!

Attached Files

Multi-Lot.htm (147.1 KB, 162 views)

Eric: Sorry buddy, but it does buy/sell against the short term trend. Take a look at the first series of trades, starts out by buying 1 lot then the price goes down and it buys another 2 lots, keeps going down, then buys another 4 lots, and so on. In fact it never buys with the trend.