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Before I start my holydays Wednesday next week I will try to finish version 1.2 of Phoenix. It’s my intention to remove the Surf function completely as I’m not satisfied with the performance of it. Apart from that I think it’s after all not a good idea to try to make an EA that’s suitable for a ranging as well as a trending market. I think it’s better to focus on the fact that Phoenix is a counter-trend EA that’s doing very well in a ranging market. We better try to improve Phoenix insofar that it avoids the trending markets and gets the most out of a ranging market.
How to improve Phoenix?
Avoid a trending/volatile market: I think SafePipsDistance and SafeArea are doing quit well. We maybe need a little tweaking.
Avoid trading during certain parts of the day: The TradeFrom/TradeUntil will do.
Money management is another issue. How to deal with loosing trades? There are 3 different approaches:
Phoenix is using a money management function were the number of lots is based on the free margin of your account. If the free margin decreases so will the number of lots and vice versa.
After a loosing trade you open a new trade for the same pair and you increase your lots with the intention to level out the first loosing trade. If the second is a loser too you increase your lots again. So with a TP=25 and SL=50 and Lots=1 you get the following summary:
First trade 1 lot looser -50
Second trade 2 lots looser -100
Third trade 4 lots looser -200
Fourth trade 8 lots looser -400
Fifth trade 16 lots and so on.
The idea behind this is that after a couple of losers for the same pair it becomes more and more unlikely that the following trade is a loser too. I’ve never tried this approach, but I like the idea.
The third approach is to decrease the number of lots after a couple of losers in a row (for different pairs). The idea behind this is that the EA apparently arrived in a less suitable period and have to wait for better times. Only after a couple of winning trades the number of lots will increase. I think we have sufficient options for Phoenix to avoid these less suitable periods so we leave this approach for what it is.
I think I will add the second option (increase the number of lots after a loosing trade) to the next version of Phoenix for those who want to user this.
At the end of every week I study all the trades that were made by Phoenix. This is very useful and I’ve noticed that all the JPY-pairs need a different approach. I will tell you more in my next post.
This weekend I will make a new version of Phoenix, test it on Monday and post it Tuesday. Stay tuned!
Thank you very much Hendrick
Please try to consider the micro account in your second version like 1000$
thanks a lot
Hey Hassan!
My first post is updated and you will find there version 1.1. It should be working now for Micro Accounts. Try it and let me know if it works for you. I wish a lot of Pips!
Before I start my holydays Wednesday next week I will try to finish version 1.2 of Phoenix. It’s my intention to remove the Surf function completely as I’m not satisfied with the performance of it. Apart from that I think it’s after all not a good idea to try to make an EA that’s suitable for a ranging as well as a trending market. I think it’s better to focus on the fact that Phoenix is a counter-trend EA that’s doing very well in a ranging market. We better try to improve Phoenix insofar that it avoids the trending markets and gets the most out of a ranging market.
How to improve Phoenix?
Avoid a trending/volatile market: I think SafePipsDistance and SafeArea are doing quit well. We maybe need a little tweaking.
Avoid trading during certain parts of the day: The TradeFrom/TradeUntil will do.
Money management is another issue. How to deal with loosing trades? There are 3 different approaches:
Phoenix is using a money management function were the number of lots is based on the free margin of your account. If the free margin decreases so will the number of lots and vice versa.
After a loosing trade you open a new trade for the same pair and you increase your lots with the intention to level out the first loosing trade. If the second is a loser too you increase your lots again. So with a TP=25 and SL=50 and Lots=1 you get the following summary:
First trade 1 lot looser -50
Second trade 2 lots looser -100
Third trade 4 lots looser -200
Fourth trade 8 lots looser -400
Fifth trade 16 lots and so on.
The idea behind this is that after a couple of losers for the same pair it becomes more and more unlikely that the following trade is a loser too. I’ve never tried this approach, but I like the idea.
The third approach is to decrease the number of lots after a couple of losers in a row (for different pairs). The idea behind this is that the EA apparently arrived in a less suitable period and have to wait for better times. Only after a couple of winning trades the number of lots will increase. I think we have sufficient options for Phoenix to avoid these less suitable periods so we leave this approach for what it is.
I think I will add the second option (increase the number of lots after a loosing trade) to the next version of Phoenix for those who want to user this.
At the end of every week I study all the trades that were made by Phoenix. This is very useful and I’ve noticed that all the JPY-pairs need a different approach. I will tell you more in my next post.
This weekend I will make a new version of Phoenix, test it on Monday and post it Tuesday. Stay tuned!
Hendrick,
If I read the code correctly in Phoenix v1.1, if using Micro account and MM that calculates, using 5% Risk, the lot size to 0.025, then the code below will return LotMM=0.
lotMM = MathRound(lotMM*10)/10; MathRound(0.025*10) will return 0.
You might consdier using the NormalizeDouble() function to round the lots. You can set number of decimal points needed.
Hendrick, it looks dense, but it works. Gives the ability to set trading day and 4 trading times for each day. It would be possible to set trading schedules around events. Also, I've found that for the last 4 Fridays, I've had majority of loses. In backtesting and forward testing this week, not tradng on Thursday and Friday has made a big difference to bottom line profits. I will be testing to stop trading at noon on Thursday and all day Friday. It is the open orders on Friday Morning that are mostly in jeopardy. Need to set the schedule to minimize number of open orders on Friday morning.
extern int Sunday = 1; // 0 = trade off, 1 = trade on
extern int Monday = 1;
extern int Tuesday = 1;
extern int Wednesday = 1;
extern int Thursday = 1;
extern int Friday = 1;
I have observed that wins and losses come in waves. I think from what understand of the elliot wave that this is what it's based on. I know that I can look at my tests of my trending ea and see that it has 'strings' of wins and losses. It has choppy periods when the win is followed by the loss and when it will have one or two in a row and then less but significantly times when it gets 5 to 12 in a row.
I have wondered about adapting the lot sizes based on the idea of if the last trade was a winner or loser. It's not going to be perfect but in those times when there IS a series of 3 or more in a row it's going to add up significantly. that goes both ways. losses could be minimized by downsizing just as well as gains increased by upsizing.
I would very much like to see this concept made into a function that could be applied in other EA's as well especially like the gogetter that I'm working on. I have it on my to do list but as you know I'm not an accomplished programmer.
I have friends who are working with traders all the time and they report that those who are really successful ARE doing lot sizing adaptations and not just trading with static lot settings. I'm not sure how to approach this but I know it's worth pursuing. How do you use the code functions available to look back at the account history one trade to see if the last trade was a winner?
I like seeing this married to a trending EA. I've seen that as a good idea from the moment I saw firebird and phoenix. One you do that then all you need is to determine when to switch between the two.
Linear Mode
