Piplite v1.0 - Page 12

kwkee · #**111** (**permalink**) 12-11-2008, 02:57 PM

Just few hours ago. I think there was a surge in euro/gbp (surge up) and usd/jpy(surge down)

That sudden surge took out nearly 30 percent of my account size (from $1615 0.01 lots, 1pip=1cent ---> $1129). I have stop the EA.

Is there some sort of stop loss in Piplite 1.5? Or is it that it will hedge only up to certain steps and then after that it will cut loss?

I was running Blessing 2 v4.3 in another demo account and it took that surge as if it was "business as usual" by hedging according to the multiplier (set at 1.4). No issue for Blessing, but Piplite took a permanent 30% loss.

Hope someone can explain the exit strategy of Piplite.

lron · #**112** (**permalink**) 12-11-2008, 08:43 PM

All,

I really love to see all the action here with Piplite. I'm not the brightest bulb on the shelf so it's great to see others thinking about improvements. I want to address some questions that are out there. I started Piplite with the idea that this was a lite version of Pipmaker. I wanted to keep just one entry decision indicator and concentrate on protection. Unfortunately, I had to add Fisher because recent market conditions dictated a different entry decision process. Well, this version is growing in size so I'm going to make a decision so not increase the complexity of this EAs with more and more decision variables. Fisher is going away. Mikeduk's MARSI Cross is staying along with his timing filter. My addition of trend RSI protection stays as well.

Piplite works best in "reverse". As the market goes long, it places short orders and vs versa. It does this until a profit potential occurs and increase subsequent orders through a martingale strategy. Trend will kill an EA like this so entries, both timing and spacing, need to be managed. Piplite had an autospacing feature but not an autotiming feature. It does now. Piplite didn't have protection against overbought or oversold markets, it does now. PROTECTION is the key to running an EA such as Piplite. You must protect your hard earned dollars. Turn on Equity Protection and set it at 50%. Set your initial balance correctly. If you are starting out, you do have the potential of losing up to 50% of that BUT, as time goes on and you double your initial investment, you will be trading with broker money!

Piplite takes long to backtest so if you want to use it, use the set files at the beginning of this thread. They have been backtested. You can't be afraid of a 49% drawdown; afterall, you told Piplite to use 50%. 30% drawdown is nothing for this EA so you can't be scared if you see it. If you close out the trades, YOU have lost money! If you let Piplite work, it will close out in a profit. Stopping the EA from doing it's work is not the fault of the EA if your account falls 30% and YOU close the trade for a loss.

v1.7 will come out shortly after a complete backtest on GBPUSD along with a new set file. I have found a small, shining light in this latest set of version changes that I will share once I can confirm it. Additionally, I will give a readers digest version on entry protections and exit parameters in my next post. Expect a new version soon...

Happy Trading

v/r

kwkee · #**113** (**permalink**) 12-11-2008, 10:11 PM

Quote:

Originally Posted by lron

All,

Piplite takes long to backtest so if you want to use it, use the set files at the beginning of this thread. They have been backtested. You can't be afraid of a 49% drawdown; afterall, you told Piplite to use 50%. 30% drawdown is nothing for this EA so you can't be scared if you see it. If you close out the trades, YOU have lost money! If you let Piplite work, it will close out in a profit. Stopping the EA from doing it's work is not the fault of the EA if your account falls 30% and YOU close the trade for a loss.

v/r

Hi Iron,

Thanks for the detailed explanation.

I would like to clarify the above however. What happen to me is that Piplite 1.5 actually CLOSE OUT the trades resulting in a permanent 30% loss. It is not a DD and neither did I close out the trades myself.

So I was wondering if there is some sort of stop loss built into PipLite that once hit, it will closes all trades by itself.

un6oitil · #**114** (**permalink**) 12-11-2008, 11:12 PM

Quote:

Originally Posted by lron

All,

I really love to see all the action here with Piplite. I'm not the brightest bulb on the shelf so it's great to see others thinking about improvements. I want to address some questions that are out there. I started Piplite with the idea that this was a lite version of Pipmaker. I wanted to keep just one entry decision indicator and concentrate on protection. Unfortunately, I had to add Fisher because recent market conditions dictated a different entry decision process. Well, this version is growing in size so I'm going to make a decision so not increase the complexity of this EAs with more and more decision variables. Fisher is going away. Mikeduk's MARSI Cross is staying along with his timing filter. My addition of trend RSI protection stays as well.

Piplite works best in "reverse". As the market goes long, it places short orders and vs versa. It does this until a profit potential occurs and increase subsequent orders through a martingale strategy. Trend will kill an EA like this so entries, both timing and spacing, need to be managed. Piplite had an autospacing feature but not an autotiming feature. It does now. Piplite didn't have protection against overbought or oversold markets, it does now. PROTECTION is the key to running an EA such as Piplite. You must protect your hard earned dollars. Turn on Equity Protection and set it at 50%. Set your initial balance correctly. If you are starting out, you do have the potential of losing up to 50% of that BUT, as time goes on and you double your initial investment, you will be trading with broker money!

Piplite takes long to backtest so if you want to use it, use the set files at the beginning of this thread. They have been backtested. You can't be afraid of a 49% drawdown; afterall, you told Piplite to use 50%. 30% drawdown is nothing for this EA so you can't be scared if you see it. If you close out the trades, YOU have lost money! If you let Piplite work, it will close out in a profit. Stopping the EA from doing it's work is not the fault of the EA if your account falls 30% and YOU close the trade for a loss.

v1.7 will come out shortly after a complete backtest on GBPUSD along with a new set file. I have found a small, shining light in this latest set of version changes that I will share once I can confirm it. Additionally, I will give a readers digest version on entry protections and exit parameters in my next post. Expect a new version soon...

Happy Trading

v/r

Thank you for your big work and to share it

un6oitil

lron · #**115** (**permalink**) 12-11-2008, 11:21 PM

There is no stop loss. Piplite trades till it's in profit or equity protection is hit, there is no in between. The only other explanation is your broker closing the trades. There have been instances of brokers closing trades. Usually it's a margin issue.

v/r

Quote:

Originally Posted by kwkee

Hi Iron,

Thanks for the detailed explanation.

I would like to clarify the above however. What happen to me is that Piplite 1.5 actually CLOSE OUT the trades resulting in a permanent 30% loss. It is not a DD and neither did I close out the trades myself.

So I was wondering if there is some sort of stop loss built into PipLite that once hit, it will closes all trades by itself.

lron · #**116** (**permalink**) 12-12-2008, 12:27 AM

All,

New Version is here. Here are the fixes:

Buy and Sell arrows fixed
Fisher indicator removed
Broker Decimal Set removed...EA autosets
Comment section has aRSI and MARSI
Menu reworked...less things to set
MARSI fixed and working well

New set file on first post is for GBPUSD and you need to select short only! Yes, I found out that Piplite is an awesome directional only trader. The backtest a couple of posts back confirms this. None of the new filters worked on GBPUSD without hitting EP however, directional trading worked swimmingly! Go for it!

Backtesters, concentrate on changing the aRSI settings. Periods can be anything but 60 is best. I start with bars (10-30) and once I find a good range, I change the trigger (.005-.01 or 0). 0 tell ATR autotrigger the correct entry. Apply your selected filter and go to town. MARSI cross confirms aRSI if you desire to use it. GBPCHF, EURCHF, CHFJPY and EURGBP still need backtesting.

Happy Trading

v/r

jlust286 · #**117** (**permalink**) 12-12-2008, 01:17 AM

According to the equity protection code in version 1.5, it can close out at 30% loss if you have it set to FloatPercent at 50% loss and also have Portion set to 3.

First it divides the Balance into 3 then multiplies that by 50% which actually closes trades when there is a 17% loss not 50%. If that number is reached then it will close trades in that currency. After the balance is now 17% less is may close trades in other currencys depending on how bad off they are.

Let me give an example:
Say you are trading EURCHF, EURGBP, and GBPUSD on a $10,000 account and you have the EA set to protect the equity when FloatPercent is set at 50% and Portion is set to 3. First divide $10,000 by 3 and you get $3,333 then 50% of that is $1,666. $1,666 is how much any single currrency is allowed to lose before protection kicks in and closes trades for that currency. If that happens then your new balance is now $8,334. Divide that by 3 and multiply by 50% and your new protection is at $1,389. If another currency is lossing by that much then Equity Protection will be kicked in for that currency as well and your new balance is $6945 which is a total loss of about 30% from your starting balance.

Of coarse when you are backtesting you are only trading one currency and portion is set to 1 which means that during backtest the currency actually losses 50% before it is closed out by the EA so the results look much different than when trading 3 currencies and portion set to 3 which only allows a 17% loss.

I'm not sure if that is how the code was intended to work but this is how it is written below.

Code:

if(UseEquityProtection) {
       
       double PortionBalance, PortionEquity;
       TotalProfit = NormalizeDouble(TotalProfit,0);
       
       PortionBalance = NormalizeDouble(AccountBalance()/Portion,0);
       PortionEquity  = NormalizeDouble(PortionBalance + TotalProfit,0);
     
       if ( PortionBalance - PortionEquity >= (PortionBalance * FloatPercent/100) )  
         
             ExitAllTrades(Red,"Max P/L Reached");           
      }

kwkee · #**118** (**permalink**) 12-12-2008, 01:45 AM

Quote:

Originally Posted by lron

There is no stop loss. Piplite trades till it's in profit or equity protection is hit, there is no in between. The only other explanation is your broker closing the trades. There have been instances of brokers closing trades. Usually it's a margin issue.

v/r

Iron, it is a demo account. So I don't suppose the broker will interfere, unless it is margin issue or the maximum of 50 lots is breached and the server closes the trade.

Let me check again if the equity protection has been hit. At $1615 and Portion set to 2 for each pair, means each pair has an allocation of $807.50. I set the equity protection at 40% so a loss of $323 on any pair will have the equity protection kicked in. I don't think it hit the loss of 40% yet.

I will try to post up the forward testing statements tonight.

kwkee · #**119** (**permalink**) 12-12-2008, 01:54 AM

Quote:

Originally Posted by jlust286

According to the equity protection code in version 1.5, it can close out at 30% loss if you have it set to FloatPercent at 50% loss and also have Portion set to 3.

First it divides the Balance into 3 then multiplies that by 50% which actually closes trades when there is a 17% loss not 50%. If that number is reached then it will close trades in that currency. After the balance is now 17% less is may close trades in other currencys depending on how bad off they are.

Let me give an example:
Say you are trading EURCHF, EURGBP, and GBPUSD on a $10,000 account and you have the EA set to protect the equity when FloatPercent is set at 50% and Portion is set to 3. First divide $10,000 by 3 and you get $3,333 then 50% of that is $1,666. $1,666 is how much any single currrency is allowed to lose before protection kicks in and closes trades for that currency. If that happens then your new balance is now $8,334. Divide that by 3 and multiply by 50% and your new protection is at $1,389. If another currency is lossing by that much then Equity Protection will be kicked in for that currency as well and your new balance is $6945 which is a total loss of about 30% from your starting balance.

Ahh.....I think this could be the case.

You could be right here. I have two pairs running, and after one pair closes with a a loss (maybe equity protection hit), I saw that the other pair started to close out not long after as well bringing the total of losses close to 30%

So maybe it is safer to run with a single pair only even on a nano-lot account

lron · #**120** (**permalink**) 12-12-2008, 02:03 AM

As always, I usually don't have all the information while trying to answer the 30% question.

Portion control was designed to protect the pair you trade from other pairs that your are trading. It effectively divides your account into portions. When you do this, you must understand that you portion your initial account balance and it's that balance that is used in the equity protection.

Now, I assume, right now you are going back and doing the math and seeing that the 30% is 30% of your total account yet it's 50% of your portioned account.

This is how Piplite protections work. What we really need to work on is better set files and better uses of the new filters.

v/r