Binary trading lately more and more popular, this is due to the ease and simplicity offered trading procedures. Binary is derived from the binary, ie the numbers 0 and 1. Which can be interpreted any (profit) or not (loss).
It is not as complicated as trading in general, which should have the ability to determine the value of take profit, stop loss value, number of lots, adequacy of capital (money management), and various other complexities, binary trading is very simple. Trader prosecuted only able to predict whether prices will go up or down a few hours ahead.
In binary trading, trading based on the value of the contract, not a lot. Please choose whether you want a contract worth $ 50 or $ 1000, depending on the adequacy of capital and the confidence level of prediction.
If believed to be within 1 hour ahead price will go up then purchased the contract CALL, otherwise if the price is believed to be down then purchased the contract PUT. The contract will expire in 1 hour and if the prediction is true then the profits will be obtained which ranged from 65% to 85%. Whereas if one prediction you will get 0% to 10% of capital at stake to buy the contract.
For example, in 1 hour ahead predicted that prices would go up then buy EURUSD CALL contracts valued at $ 1000 with a payout of 85%. The contract will expire next 1 hour, if the prediction is true then it will obtain profit of $ 850 at the time the contract expired. However, if the prediction is wrong, then is left of the capital is only $ 50.
Easy and very simple right?
No need to bother looking at the chart continuously, do not have to worry about stop losses, do not have to wait long for maximum profit for the first hour has expired contract and the profit has been received, and the most interesting is a larger profit than usual trading.
When calculated with a payout of 75% (in the money) and return 10% (out of the money), with a capital stake of $ 1000 you will get profit of $ 750 if the prediction is true and the loss of $ 900 if the prediction is wrong.
If the above calculation is analogous to the forex, it's the same with take profit of 75 pips and 90 pips stop loss. Indeed, the risk return ratio (RR) is not balanced because the value is greater than the value of stop losses take profit. But the potential for profit can earn 75 pips in less than an hour, would be very interesting.
For those who are accustomed to forex trading, of course, well aware that to obtain a 75 pip profit on forex trading, the chances of the day is only 1 or 2 times that in the event of trending.
Forex market in a day tend to move sideways so that the profit generated is generally around 20 - 50 pips for one entry. Later in the event of a new trending above 50 pips profit then eventually can be obtained. EURUSD moving average in a day is only about 120 pips, so to get above 50 pip profit for one entry only possible if the trending.
Compare this with the binary trading, the potential profit gain 65 sd 85 pips can be obtained every hour. Tempting is not it?
Recently a site in Australia to introduce a binary trading, which is not limited to trading only, but including the trading of stocks and indexes various major American stock exchanges.
Minimum capital required for trading in TradeSmarter only $ 100 and the contract is the minimum that can be purchased for $ 50. Interesting, because it does not need big capital. Deposit capital was too easy, you can use Credit Card, MoneyBookers, or bank transfer.
Almost for a week I noticed and studied the movement and how it trades. Very easy and simple as that done fairly determine the value of the contract to be purchased and predict the direction of the price of 1 hour.
Imagine how much potential that can be obtained in a day as long as the predictions are always right. Let's just use a capital of $ 250 and purchased the contract is valued at $ 100 EURUSD continuously for 10 hours of trading with an average payout of 75%.
Do 10 hours a day with trading the profit earned of $ 750. Compare done when regular trading, it is very difficult, not only with capital of $ 100 and can earn $ 750 profit in a day or 750% profit.
When wrong predictions, no more custom rear stop losses and hope against hope that the trend back toward the original. The amount of loss will remain limited and thus the overall capital exhausted to stay awake and not total due to improper trading only once.
However, to be able to earn consistent profits is not easy. Necessary skills at a very accurate prediction and precision. For those who have been accustomed to doing scalping, certainly not a difficult thing to determine the direction of the price of one hour ahead so as to obtain consistent profit.
Binary trading can also be used as an alternative to trading forex. During this week besides the EURUSD trading in Metatrader, I was also fun to make your own simulation predictions guesswork PUT and CALL:)
Later when it is getting trained, while waiting for entry or exit is right in Metatrader, then as an effort to fill the time just do it binary trading. After all, capital is small and the results are far more tolerable, as long as capable of accurate predictions.
Great potential and the restrictions on the amount of loss that drew me to write it, who knows there is interest among readers.
Saturday, December 17, 2011
Monday, December 12, 2011
Multi Brokers Test #6
This morning the entire account on the trials comparing various brokers who use 0.01 lots and 1250 capital experienced a considerable loss of $ 150. Because of this the Blessing EA stop trading activity due to equity protection feature is triggered.
Due to the test this time only used one pair only, research the cause of the loss is easier than ever before. Here below is a detailed history of trades:
Blessing seen yesterday doing 5 times entry and all is Buy. Though yesterday was very obvious EU is downtrend. But Blessing did Buy entry, it is definitely going the wrong direction and experience loss.
Blessing also did martingale method which increases continuously lot though entry is clearly in wrong direction. Consequently floating loss becomes very large over time due to many times entry which against the direction of the trend and compounded by raising the number of lots.
This is why equity protection is then triggered and finally the whole trading activity is automatically terminated by the Blessing.
From the above, it can be concluded that the Blessing requires a huge capital to withstand losses if the trend continuously moving in one direction just as it did yesterday.
In contrast to conditions in the last week which Blessing performance is very good due to the trend moved up and down within a narrow radius and not move only in one direction as it did yesterday.
Here below is the Open Trades this morning from FigFX broker:
Seen that although the floating loss has reached $ 2000 but entry is still left open to wait for the trend reversed.
In FigFX and FxPro used capital of 50 thousand with 0.1 lot so the ability to withstand floating loss on two accounts is greater due to capital employed is very large.
When compared with trades history above, because of insufficiency of capital then Blessing just do martingale up to 0.06 lots. But in FigFX and FxPro able to do up to 0.08 lots (0.8 lot divided by 10).
So that means when capital is still enough, Blessing will perform a continuous martingale although it will result in a large floating loss. And if equity limit is reached then the protection will be closed all open trades and trading activity is stopped.
This is what happens to a broker that uses 0.01 lot which at the time of loss has reached $ 150 or 12% (150: 1250) when equity protection feature is triggered. While on a broker that uses a large capital, although the loss has reached 2000 or 4% (2000: 50 thousand), equity protection is still not triggered and the open trades are not close.
From the above, it can be concluded that there are 2 main factors that support the performance of Blessing. First, trend condition itself and the second the existence of sufficient capital.
When the trend moves up and down within a narrow range as in the last week then the Blessing chances would be greater to survived, because floating loss will soon turn into a profit due to the trend reversed.
However, if the entry moves only in one direction just as it did yesterday then Blessing requires huge capital in order to remain able to withstand floating loss. If capital is not sufficient then the equity protection feature will be triggered and all entries will be in close so floating loss will immediately become realize loss.
For those interested to use the Blessing on the live account, be aware of the trend conditions. Never use Blessing if trends move faster in one direction only because if capital is not sufficient then it is definitely going to erode capital.
The results of the trial yesterday has shown us all one of the weaknesses of Blessing. Therefore, let us monitor the trial along with comparisons on the following days to find out whether there are other weaknesses of Blessing.
Due to the test this time only used one pair only, research the cause of the loss is easier than ever before. Here below is a detailed history of trades:
Blessing seen yesterday doing 5 times entry and all is Buy. Though yesterday was very obvious EU is downtrend. But Blessing did Buy entry, it is definitely going the wrong direction and experience loss.
Blessing also did martingale method which increases continuously lot though entry is clearly in wrong direction. Consequently floating loss becomes very large over time due to many times entry which against the direction of the trend and compounded by raising the number of lots.
This is why equity protection is then triggered and finally the whole trading activity is automatically terminated by the Blessing.
From the above, it can be concluded that the Blessing requires a huge capital to withstand losses if the trend continuously moving in one direction just as it did yesterday.
In contrast to conditions in the last week which Blessing performance is very good due to the trend moved up and down within a narrow radius and not move only in one direction as it did yesterday.
Here below is the Open Trades this morning from FigFX broker:
Seen that although the floating loss has reached $ 2000 but entry is still left open to wait for the trend reversed.
In FigFX and FxPro used capital of 50 thousand with 0.1 lot so the ability to withstand floating loss on two accounts is greater due to capital employed is very large.
When compared with trades history above, because of insufficiency of capital then Blessing just do martingale up to 0.06 lots. But in FigFX and FxPro able to do up to 0.08 lots (0.8 lot divided by 10).
So that means when capital is still enough, Blessing will perform a continuous martingale although it will result in a large floating loss. And if equity limit is reached then the protection will be closed all open trades and trading activity is stopped.
This is what happens to a broker that uses 0.01 lot which at the time of loss has reached $ 150 or 12% (150: 1250) when equity protection feature is triggered. While on a broker that uses a large capital, although the loss has reached 2000 or 4% (2000: 50 thousand), equity protection is still not triggered and the open trades are not close.
From the above, it can be concluded that there are 2 main factors that support the performance of Blessing. First, trend condition itself and the second the existence of sufficient capital.
When the trend moves up and down within a narrow range as in the last week then the Blessing chances would be greater to survived, because floating loss will soon turn into a profit due to the trend reversed.
However, if the entry moves only in one direction just as it did yesterday then Blessing requires huge capital in order to remain able to withstand floating loss. If capital is not sufficient then the equity protection feature will be triggered and all entries will be in close so floating loss will immediately become realize loss.
For those interested to use the Blessing on the live account, be aware of the trend conditions. Never use Blessing if trends move faster in one direction only because if capital is not sufficient then it is definitely going to erode capital.
The results of the trial yesterday has shown us all one of the weaknesses of Blessing. Therefore, let us monitor the trial along with comparisons on the following days to find out whether there are other weaknesses of Blessing.
Sunday, December 11, 2011
Million Dollar Pips ( MDP ) #3
Starting tomorrow will be performed in addition to trials comparing various brokers, also will be a retest of the Million dollar Pips (MDP) EA donation from Mr. Hadi.
In previous trials, MDP EA gives poor results which are very rarely do entry exit and just silent. Previous trials used 2 pieces of MDP EA, version 1.1.0. and version 2.1.2 where in each EA conducted trials with 4 different settings as described by its manual book below:
Therefore, in addition to the test tomorrow back by using a broker VantageFX also tested in Pepperstone broker with ECN Account as benchmarking the performance of this EA.
ECN Accounts Pepperstone system using a mixture of spreads and commissions where the spreads tend to be smaller (usually less than 1 pip) due to separate these components into 2 pieces and not like in general (VantageFX, GoMarkets, etc.) which uses only one component, spread.
With the spread is very small it is expected that MDP EA can provide entry-exit far more than before. Therefore, repeated testing is not only done in VantageFX alone, but used also Pepperstone to know the difference.
Also to be tested is Trap EA contribution from Mr. Samuti which previously had difficulty on entry exit. Hopefully after the repair, tomorrow EA trap may work better than last week.
Starting tomorrow the whole trial EAs mentioned above can be monitored at these links in real time: ea.andromeda-trading.com
In previous trials, MDP EA gives poor results which are very rarely do entry exit and just silent. Previous trials used 2 pieces of MDP EA, version 1.1.0. and version 2.1.2 where in each EA conducted trials with 4 different settings as described by its manual book below:
Therefore, in addition to the test tomorrow back by using a broker VantageFX also tested in Pepperstone broker with ECN Account as benchmarking the performance of this EA.
ECN Accounts Pepperstone system using a mixture of spreads and commissions where the spreads tend to be smaller (usually less than 1 pip) due to separate these components into 2 pieces and not like in general (VantageFX, GoMarkets, etc.) which uses only one component, spread.
With the spread is very small it is expected that MDP EA can provide entry-exit far more than before. Therefore, repeated testing is not only done in VantageFX alone, but used also Pepperstone to know the difference.
Also to be tested is Trap EA contribution from Mr. Samuti which previously had difficulty on entry exit. Hopefully after the repair, tomorrow EA trap may work better than last week.
Starting tomorrow the whole trial EAs mentioned above can be monitored at these links in real time: ea.andromeda-trading.com
Multi Brokers Test #5
Here below is the result of the comparison STP/ECN brokers until the end of this week:
Visible VantageFX still superior, but differ slightly with Pepperstone Standard Acccount. While GoMarkets is ranked lowest possible this is because in the current time GoMarkets applying a higher spread than other STP/ECN brokers.
While other brokers comparative trial result is below:
VantageFX was still the most superior. While the lowest ranking is RoboForex. On several occasions, always turns FigFX or RoboForex on the lowest ranked. Sometimes FigFX in the lowest rankings, but the next day RoboForex be replaced by the lowest ranking.
What is surprising in the end result where InstaForex match Pepperstone.
Because yesterday at FxPro occur due to a margin call due to insufficient capital, then starting tomorrow will be re-trial comparisons. Where in addition to the above brokers, IBFX Australia will be added as an additional broker to be tested.
The entire broker use 1:500 exception Pepperstone and IBFX Australia that use leverage 1:400. Capital will be understated which only use 1250 for a broker who apply 0.01 lots and 12 500 for a broker that uses 0.1 lots. This is done in order to obtain the similarity parameters so that comparisons can be made with the same condition on all brokers.
Special treatment to InstaForex, although the capital only 1250 but will used 0.1 lot and not 0.01. This is because InstaForex used micro accounts so in order to obtain the same effect as other brokers then raised to 0.1 lots.
Which will be used as a test tool is the Blessing EA which will only use one pair only (EU). It is not like in previous trials which used 4 pair.
Starting tomorrow, comparative trial on the broker can be monitored in real time on this link: ea.andromeda-trading.com
Visible VantageFX still superior, but differ slightly with Pepperstone Standard Acccount. While GoMarkets is ranked lowest possible this is because in the current time GoMarkets applying a higher spread than other STP/ECN brokers.
While other brokers comparative trial result is below:
VantageFX was still the most superior. While the lowest ranking is RoboForex. On several occasions, always turns FigFX or RoboForex on the lowest ranked. Sometimes FigFX in the lowest rankings, but the next day RoboForex be replaced by the lowest ranking.
What is surprising in the end result where InstaForex match Pepperstone.
Because yesterday at FxPro occur due to a margin call due to insufficient capital, then starting tomorrow will be re-trial comparisons. Where in addition to the above brokers, IBFX Australia will be added as an additional broker to be tested.
The entire broker use 1:500 exception Pepperstone and IBFX Australia that use leverage 1:400. Capital will be understated which only use 1250 for a broker who apply 0.01 lots and 12 500 for a broker that uses 0.1 lots. This is done in order to obtain the similarity parameters so that comparisons can be made with the same condition on all brokers.
Special treatment to InstaForex, although the capital only 1250 but will used 0.1 lot and not 0.01. This is because InstaForex used micro accounts so in order to obtain the same effect as other brokers then raised to 0.1 lots.
Which will be used as a test tool is the Blessing EA which will only use one pair only (EU). It is not like in previous trials which used 4 pair.
Starting tomorrow, comparative trial on the broker can be monitored in real time on this link: ea.andromeda-trading.com
Saturday, December 10, 2011
Terminal Disconnect
Sometimes experienced broker server disconnects due to various things, like a bad internet connection, the server is reset, or even due to hacker attacks.
As had happened in FxPro some time ago where the server is attacked by hackers and paralyzed. Maybe the hacker by profession as well as a trader, it could be when he suffered loss due to rigged FxPro and then counter-attacked :)
Therefore, always use a broker who has more than 1 piece of the server. If there discconect on one server it can be readily moved to another server. The way to check how many servers are used by the broker is to click on right bottom Metatrader as shown below:
Seen there are 2 pieces of server owned by the broker. If there is disconnect, then immediately moved to another server by clicking on one server or click Rescan.
Rescan function can also be used to perform automatic scanning of speed response of each server. When considered using one of the servers a bit slow, just click Rescan. Metatrader will automatically test and then choose the fastest server.
As had happened in FxPro some time ago where the server is attacked by hackers and paralyzed. Maybe the hacker by profession as well as a trader, it could be when he suffered loss due to rigged FxPro and then counter-attacked :)
Therefore, always use a broker who has more than 1 piece of the server. If there discconect on one server it can be readily moved to another server. The way to check how many servers are used by the broker is to click on right bottom Metatrader as shown below:
Seen there are 2 pieces of server owned by the broker. If there is disconnect, then immediately moved to another server by clicking on one server or click Rescan.
Rescan function can also be used to perform automatic scanning of speed response of each server. When considered using one of the servers a bit slow, just click Rescan. Metatrader will automatically test and then choose the fastest server.
Cheap VPS
In a few months ago by this blog SWVPS.com recommended if you want to use the VPS because the price is cheaper than most other VPS hosting, but current conditions have shifted and there is another VPS Hosting is capable of providing much cheaper price.
Below is a table VPS prices offered by SWVPS.com:
Compare with a table of prices offered by UCVHOST.com are much cheaper:
The price offered by UCVHOST.com for VPS Lite is $ 9.99, or nearly half of WVPS-1 SWVPS.com offering a price of $ 18.
In choosing a VPS is used for the purposes testing EA, the sufficient memory is a main factor for choosing in which the SWVPS.com offers 1 GB of memory while in UCVHOST.com only 768 MB but the price is different almost 2-fold.
With 768 MB memory is enough to use up to 10 EA running at 10 different Metatrader on the same times. So of course VPS offered by UCVHOST.com become more attractive than those offered by SWVPS.com.
In addition UCVHOST.com also offer a special VPS for Forex as shown in the figure below:
When compared to the specification of Lite Forex VPS and VPS Lite offered by UCVHOST.com is no different where both have 768MB memory, 10GB disk space and 500GB bandwidth. Well, where is the difference? Why Forex VPS Lite subscription fees per month more expensive $ 2?
Well, it turns out the difference lies in Metatrader installation. Where on VPS Lite is not installed while on the Forex Metatrader VPS Lite is installed.
This is actually ridiculous because to do install Metatrader occurs only once during the first use of VPS and only takes a less than 5 minutes. Only for this, will cost you $ 2 per month more expensive than VPS Lite.
Another option is to use a VPS Commercial Network Services (CNS) which is very popular in the Forex world because a lot of forex traders who use it.
CNS popular due to excess are more reliable than other VPS Hosting where "said" never happened disconnection and always guaranteed online continuously. But VPS subscription fee in the CNS is much more expensive than others as shown in the picture below:
Seen that the CNS offers 2 choices of VPS Value Edition 384MB memory is priced at $ 30 and VPS 512MB Memory Standard Edition is priced at $ 65.
Compared with the VPS Lite UCVHOST.com which has 768MB of memory, of course, when 512 just sold for $ 65 then that uses 768MB of memory should the price is about $ 75.
From this comparison can finally concluded that CNS VPS price was 7.5 times more than other VPS Hosting reasonable prices which available on the market. Insanely expensive:)
Choose which one?
Depend on your pockets and your needs :)
Below is a table VPS prices offered by SWVPS.com:
Compare with a table of prices offered by UCVHOST.com are much cheaper:
The price offered by UCVHOST.com for VPS Lite is $ 9.99, or nearly half of WVPS-1 SWVPS.com offering a price of $ 18.
In choosing a VPS is used for the purposes testing EA, the sufficient memory is a main factor for choosing in which the SWVPS.com offers 1 GB of memory while in UCVHOST.com only 768 MB but the price is different almost 2-fold.
With 768 MB memory is enough to use up to 10 EA running at 10 different Metatrader on the same times. So of course VPS offered by UCVHOST.com become more attractive than those offered by SWVPS.com.
In addition UCVHOST.com also offer a special VPS for Forex as shown in the figure below:
When compared to the specification of Lite Forex VPS and VPS Lite offered by UCVHOST.com is no different where both have 768MB memory, 10GB disk space and 500GB bandwidth. Well, where is the difference? Why Forex VPS Lite subscription fees per month more expensive $ 2?
Well, it turns out the difference lies in Metatrader installation. Where on VPS Lite is not installed while on the Forex Metatrader VPS Lite is installed.
This is actually ridiculous because to do install Metatrader occurs only once during the first use of VPS and only takes a less than 5 minutes. Only for this, will cost you $ 2 per month more expensive than VPS Lite.
Another option is to use a VPS Commercial Network Services (CNS) which is very popular in the Forex world because a lot of forex traders who use it.
CNS popular due to excess are more reliable than other VPS Hosting where "said" never happened disconnection and always guaranteed online continuously. But VPS subscription fee in the CNS is much more expensive than others as shown in the picture below:
Seen that the CNS offers 2 choices of VPS Value Edition 384MB memory is priced at $ 30 and VPS 512MB Memory Standard Edition is priced at $ 65.
Compared with the VPS Lite UCVHOST.com which has 768MB of memory, of course, when 512 just sold for $ 65 then that uses 768MB of memory should the price is about $ 75.
From this comparison can finally concluded that CNS VPS price was 7.5 times more than other VPS Hosting reasonable prices which available on the market. Insanely expensive:)
Choose which one?
Depend on your pockets and your needs :)
Multi Brokers Test #4
Today FxPro experienced loss account due to insufficient capital due to the use of 0.1 lots. If on the other brokers use 0.01 lots with a capital of 5000, so if you use 0.1 lot (10 times) should be used capital of 50 thousand in order to keep your account secure.
Just as in FigFX who also use 0.1 lot where capital employed is 50 thousand, so the account remains secure and does not experience loss due to insufficient capital. As a result of this incident then the comparison becomes no longer comparable. FxPro showed poor results only due to insufficient capital employed.
The results of comparison for 4 days on the image above shows the performance of EA's Blessing on the various brokerage almost comparable, except VantageFX leaving others. RoboForex also managed to balance with the others and not as bad as a few days ago. Current conditions indicate precisely FigFX was ranked lowest, replacing RoboForex.
However, due to events FxPro experienced loss due to insufficient capital, then this trial will be reset and used the new capital on Sunday tomorrow. Where to apply for a broker who will use 0.01 lots of capital of 5 thousand and brokers who use 0.1 lot will be used 50 thousand capital.
Just as in FigFX who also use 0.1 lot where capital employed is 50 thousand, so the account remains secure and does not experience loss due to insufficient capital. As a result of this incident then the comparison becomes no longer comparable. FxPro showed poor results only due to insufficient capital employed.
The results of comparison for 4 days on the image above shows the performance of EA's Blessing on the various brokerage almost comparable, except VantageFX leaving others. RoboForex also managed to balance with the others and not as bad as a few days ago. Current conditions indicate precisely FigFX was ranked lowest, replacing RoboForex.
However, due to events FxPro experienced loss due to insufficient capital, then this trial will be reset and used the new capital on Sunday tomorrow. Where to apply for a broker who will use 0.01 lots of capital of 5 thousand and brokers who use 0.1 lot will be used 50 thousand capital.
Tuesday, December 6, 2011
Multi Brokers Test #3
There is a strange thing when watching the results of testing several brokers.
Seen in the picture below RoboForex and InstaForex is a broker that gives the smallest gains and very different from other brokers.
In order to know the cause, here below than trades history VantageFX and InstaForex:
History of trades is only selected entry using 0.01 lots to facilitate research.
Seen in VantageFX, entry with 0.01 lots generate profit 34 pips then the value of USD is also 3.4. Thus concluded that by using 0.01 lots then 1 pip = $ 0.1. Therefore profit 34 pips profit generated $ 3.4 and $ 2.8 produces 2.8 pips.
While on InstaForex, entry is 0.01 lots with 35 generating profit $ 0.35 and not $ 3.5 as at VantageFX above. Thus concluded that this is a micro account / mini account and not a standard account as in VantageFX above.
To calculate Instaforex so the results can be comparable with another broker then must be multiplied by 10. This is the opposite of a broker that uses 0.1 lots which must be divided by 10 first so that results can be compared.
As for RoboForex, the results are as follows:
Visible results are similar to VantageFX RoboForex the entry with 0.01 lots at 35 pips profit generating $ 3.5. Thus concluded that the account on RoboForex is a standard account and not a mini / micro accounts as well as on InstaForex and not need to multiplied by a value of 10.
Thus the correct comparison is based on the image above is as follows:
- ECNProFX_STD +1.45% => +1.45% = $ 72.54
- RoboForex +0.49% => +0.49% = $ 24.44
- InstaForex +0.17% => +1.70% = $ 86 (multiplied 10 - mini account)
- FxPro +16.97% => +1.69% = $ 84.86 (divided 10 - 0.1 lot)
- VantageFX +1.91% => +1.94% = $ 95.57
- Pepperstone_ECN +1.76% => +1.76% = $ 88.15
- FIGfx +1.56% => +1.56% = $ 78.08 (divided 10 - 0.1 lot)
Which still a champion is VantageFX followed by Pepperstone ECN. Imagine if this happens in the long run and that is used is the lowest ranked broker, how many pips that lose on brokers spread :)
The question now, why RoboForex far behind than other brokers? Though the comparable calculations are correct. Probably the closest possibility is because very high spreads are applied resulting in the acquisition of any profit to be very minimal.
I better not say much and remain objective, let alone the Blessing EA prove it :)
We look together at the weekend how the overall result of these broker comparison.
Comparative trial of this broker can be monitored in real time here: ea.andromeda-trading.com
Seen in the picture below RoboForex and InstaForex is a broker that gives the smallest gains and very different from other brokers.
In order to know the cause, here below than trades history VantageFX and InstaForex:
History of trades is only selected entry using 0.01 lots to facilitate research.
Seen in VantageFX, entry with 0.01 lots generate profit 34 pips then the value of USD is also 3.4. Thus concluded that by using 0.01 lots then 1 pip = $ 0.1. Therefore profit 34 pips profit generated $ 3.4 and $ 2.8 produces 2.8 pips.
While on InstaForex, entry is 0.01 lots with 35 generating profit $ 0.35 and not $ 3.5 as at VantageFX above. Thus concluded that this is a micro account / mini account and not a standard account as in VantageFX above.
To calculate Instaforex so the results can be comparable with another broker then must be multiplied by 10. This is the opposite of a broker that uses 0.1 lots which must be divided by 10 first so that results can be compared.
As for RoboForex, the results are as follows:
Visible results are similar to VantageFX RoboForex the entry with 0.01 lots at 35 pips profit generating $ 3.5. Thus concluded that the account on RoboForex is a standard account and not a mini / micro accounts as well as on InstaForex and not need to multiplied by a value of 10.
Thus the correct comparison is based on the image above is as follows:
- ECNProFX_STD +1.45% => +1.45% = $ 72.54
- RoboForex +0.49% => +0.49% = $ 24.44
- InstaForex +0.17% => +1.70% = $ 86 (multiplied 10 - mini account)
- FxPro +16.97% => +1.69% = $ 84.86 (divided 10 - 0.1 lot)
- VantageFX +1.91% => +1.94% = $ 95.57
- Pepperstone_ECN +1.76% => +1.76% = $ 88.15
- FIGfx +1.56% => +1.56% = $ 78.08 (divided 10 - 0.1 lot)
Which still a champion is VantageFX followed by Pepperstone ECN. Imagine if this happens in the long run and that is used is the lowest ranked broker, how many pips that lose on brokers spread :)
The question now, why RoboForex far behind than other brokers? Though the comparable calculations are correct. Probably the closest possibility is because very high spreads are applied resulting in the acquisition of any profit to be very minimal.
I better not say much and remain objective, let alone the Blessing EA prove it :)
We look together at the weekend how the overall result of these broker comparison.
Comparative trial of this broker can be monitored in real time here: ea.andromeda-trading.com
Monday, December 5, 2011
Multi Brokers Test #2
When
the market began running on Monday morning yesterday, the new note that
ECN broker accounts on ECNProFX using 0.1 lots as a minimum lot. Though capital can not be altered and restricted only 1000. As
a result of this is that this account many times experienced loss due
to capital is no longer sufficient to hold the floating loss that
occurs.
It has been predicted before, let alone use 0.1 lot, use a smaller lot that is 0.01 lots with a capital of only 1000 can already lead to a margin call because this Blessing EA has a tendency to hold the floating loss is sufficiently large that adequate capital is necessary in order avoid a margin call.Another broker that capital can not be changed is FigFX where capital has been determined that its value should be 50 thousand and the smallest lot is 0.1 lots.
Another broker that uses the smallest lot is 0.1 lot FxPro. Only in FxPro, the capital value can be changed as the user desires and not from the beginning is determined by the broker as well as on ECN broker account FigFX and ECNProFX above.
Due to the differences in the value of lots and the capital value of the ratio by using a value of USD will be a little difficult when the amount of USD profit should be equated beforehand in order to obtain comparable results to the entire brokerage.For example, below is a summary of the acquisition on EA's Blessing this morning at various broker:
Brokers who use 0.1 lot would certainly tend to have the amount of USD profit or loss is higher than the brokers who use 0.01 lots. In order to obtain results similar comparisons with other brokers on the broker who then use the 0.1 lots, the amount of USD acquisition of profit should be divided by 10 in advance.
As for ECN accounts at brokerage ECNProFX comparisons will not be done due to capital constraints 1000 and due to this many times experienced loss. So the performance of EA's Blessing becomes chaotic and results can not be compared with another broker.
FxPro and FigFX in the image above acquisition profit amounted to 580 and 535. To be compared to the acquisition of profit is first divided by 10 to obtain the FxPro profit amounted to 58 and the profits amounted to 53.5 FigFX
By way of first divided by 10 then comparisons can be made even though there are differences in the use of the lots.
As for the acquisition of Total Pip does not need to be divided by 10 is because regardless of the value of lots that are used, the pip value will remain the same and will not be affected. Differences lot only affect the value of the acquisition of profit or loss in USD.
So based on the above calculation that the FxPro profit amounted to 58 and on FigFX is ranked first at 53.5 then the biggest profit gains in the USD from the picture above is VantageFX of 73.69, followed by ECN Pepperstone 61.82, and FxPro at 58 , 04.
While the first rank in the biggest profit gains Pip is VantageFX by 273, then followed by ECN Pepperstone FxPro 224.2 and then 213.9.
Only Pip acquisition value can not be compared directly with the acquisition of CAD. For example VantageFX 273 pip gain, when 1 pip = USD 1 certainly obtained the profit is USD 273. But the reality, the profit earned only U.S. $ 73.69.
This is because myfxbook do not pip calculation based on the value of lots. Eg 1 time entry with 5 lots and managed to profit 10 pips then by myfxbook acquisition will count 10 pip pip. But when done 5 times each entry with a lot and managed to profit 10 pips then be calculated by myfxbook 50 pips. As a result of this then becomes Pip value is not comparable with a value of USD.
We look together at the weekend how the overall result of these broker comparison.
Comparative trial of this broker can be monitored here: ea.andromeda-trading.com
It has been predicted before, let alone use 0.1 lot, use a smaller lot that is 0.01 lots with a capital of only 1000 can already lead to a margin call because this Blessing EA has a tendency to hold the floating loss is sufficiently large that adequate capital is necessary in order avoid a margin call.Another broker that capital can not be changed is FigFX where capital has been determined that its value should be 50 thousand and the smallest lot is 0.1 lots.
Another broker that uses the smallest lot is 0.1 lot FxPro. Only in FxPro, the capital value can be changed as the user desires and not from the beginning is determined by the broker as well as on ECN broker account FigFX and ECNProFX above.
Due to the differences in the value of lots and the capital value of the ratio by using a value of USD will be a little difficult when the amount of USD profit should be equated beforehand in order to obtain comparable results to the entire brokerage.For example, below is a summary of the acquisition on EA's Blessing this morning at various broker:
Brokers who use 0.1 lot would certainly tend to have the amount of USD profit or loss is higher than the brokers who use 0.01 lots. In order to obtain results similar comparisons with other brokers on the broker who then use the 0.1 lots, the amount of USD acquisition of profit should be divided by 10 in advance.
As for ECN accounts at brokerage ECNProFX comparisons will not be done due to capital constraints 1000 and due to this many times experienced loss. So the performance of EA's Blessing becomes chaotic and results can not be compared with another broker.
FxPro and FigFX in the image above acquisition profit amounted to 580 and 535. To be compared to the acquisition of profit is first divided by 10 to obtain the FxPro profit amounted to 58 and the profits amounted to 53.5 FigFX
By way of first divided by 10 then comparisons can be made even though there are differences in the use of the lots.
As for the acquisition of Total Pip does not need to be divided by 10 is because regardless of the value of lots that are used, the pip value will remain the same and will not be affected. Differences lot only affect the value of the acquisition of profit or loss in USD.
So based on the above calculation that the FxPro profit amounted to 58 and on FigFX is ranked first at 53.5 then the biggest profit gains in the USD from the picture above is VantageFX of 73.69, followed by ECN Pepperstone 61.82, and FxPro at 58 , 04.
While the first rank in the biggest profit gains Pip is VantageFX by 273, then followed by ECN Pepperstone FxPro 224.2 and then 213.9.
Only Pip acquisition value can not be compared directly with the acquisition of CAD. For example VantageFX 273 pip gain, when 1 pip = USD 1 certainly obtained the profit is USD 273. But the reality, the profit earned only U.S. $ 73.69.
This is because myfxbook do not pip calculation based on the value of lots. Eg 1 time entry with 5 lots and managed to profit 10 pips then by myfxbook acquisition will count 10 pip pip. But when done 5 times each entry with a lot and managed to profit 10 pips then be calculated by myfxbook 50 pips. As a result of this then becomes Pip value is not comparable with a value of USD.
We look together at the weekend how the overall result of these broker comparison.
Comparative trial of this broker can be monitored here: ea.andromeda-trading.com
Sunday, December 4, 2011
Multi Brokers Test
Blessing EA forward test results last week gave an idea to use it for testing the various brokers.
Starting today, we will perform tests on the various brokerage VantageFX, Pepperstone ECN Accounts, FxPro, InstaForex, RoboForex, FigFX, and ECNProFX (2 types of accounts - Standard and ECN). By using the EA Blessing of course the trial will be more objective.
0.01 lots will be used entirely and use the capital 5000, with exception of the ECN broker account ECNProFX where capital is used only 1000. This is because the error on demo account registration in which capital can not be changed.
Comparative trial of this broker can be monitored here: ea.andromeda-trading.com
Starting today, we will perform tests on the various brokerage VantageFX, Pepperstone ECN Accounts, FxPro, InstaForex, RoboForex, FigFX, and ECNProFX (2 types of accounts - Standard and ECN). By using the EA Blessing of course the trial will be more objective.
0.01 lots will be used entirely and use the capital 5000, with exception of the ECN broker account ECNProFX where capital is used only 1000. This is because the error on demo account registration in which capital can not be changed.
Comparative trial of this broker can be monitored here: ea.andromeda-trading.com
Saturday, December 3, 2011
STP/ECN Comparison #1
Forward test results on the various brokerage using Blessing EA shows something interesting where the results obtained on each broker showed a significant difference.
Forward test using same EA, same amount of capital (USD 5000), same lot (0.01 lots), same start time, and leverage also almost the same (VantageFX and GoMarkets 1:500 while Pepperstone 1:400). GoMarkets and VantageFX only offers an account that uses a spread and did not offer an account that uses a mix of commissions and spreads (ECN account). While Pepperstone is a broker that offers 2 different types of accounts that is the standard account that uses a spread and ECN account.
The difference of these accounts on the availability of the commission as shown in the figure below:
Seen in the picture above that the VantageFX commission value is 0 and on Pepperstone commission contained.
Generally brokers that offer ECN account is to simply create the illusion as if the spread is low. In fact, the spread is still high but seems to be low because the spread split into two components, commission and spread.
This fact is merely an illusion deliberately created by the broker. The results of forward test on the various brokerage using Blessing EA prove it. Although is used is a demo account but on STP / ECN broker usually between demo and live accounts just the same, there is no difference whatsoever. While on market maker broker usually demo account is likely to be conditioned much better than a live account.
Let us together look forward test the Blessing EA below:
The results above show the highest profit is on VantageFX that is equal to 7.22%. While the lowest occurred on GoMarkets broker is only as much as 5.86%. But Total Pips value showed the highest is on Raw Pepperstone Account where this account is ECN account that uses a mixture of spreads and commissions.
Total Pips obtained on Raw Pepperstone Account is 1914, in merely VantageFX 1688, and the lowest in GoMarkets that is equal to 1303.
Well, certainly the question that arises is why the value of Total Pips VantageFX only 1688 but it has a larger total profits of 5361 (7.22%)?
Total Pips Pepperstone Raw 1914 or 226 pips higher than VantageFX, but oddly enough it has a smaller total profit of 5320 (6.4%). Different Profit 41 (0.82%) is smaller than VantageFX. From this can be concluded that the spread split into 2 components, commission and spread, may cause an illusion as if profit value is very high when just looking only at the Total Pips. When in fact, are even lower due to Total Pips is merely an illusion.
To be more detailed, 4 forward test account is compared below:
Seen that the Daily or Monthly % profit on VantageFX much higher when compared to other brokers. Expentancy statistical value is also higher.
So it can be concluded that using a broker VantageFX far more profitable than using GoMarkets and Pepperstone due to a spread that is used by VantageFX smaller than other brokers. This article is not to promote VantageFX. This article is purely brokers test to show which ones are most profitable. The selection is up to individual taste.
Using a forward test results that has been running for a week to make conclusions it's still too early. We'll see together how the results next week.
Forward test using same EA, same amount of capital (USD 5000), same lot (0.01 lots), same start time, and leverage also almost the same (VantageFX and GoMarkets 1:500 while Pepperstone 1:400). GoMarkets and VantageFX only offers an account that uses a spread and did not offer an account that uses a mix of commissions and spreads (ECN account). While Pepperstone is a broker that offers 2 different types of accounts that is the standard account that uses a spread and ECN account.
The difference of these accounts on the availability of the commission as shown in the figure below:
Seen in the picture above that the VantageFX commission value is 0 and on Pepperstone commission contained.
Generally brokers that offer ECN account is to simply create the illusion as if the spread is low. In fact, the spread is still high but seems to be low because the spread split into two components, commission and spread.
This fact is merely an illusion deliberately created by the broker. The results of forward test on the various brokerage using Blessing EA prove it. Although is used is a demo account but on STP / ECN broker usually between demo and live accounts just the same, there is no difference whatsoever. While on market maker broker usually demo account is likely to be conditioned much better than a live account.
Let us together look forward test the Blessing EA below:
The results above show the highest profit is on VantageFX that is equal to 7.22%. While the lowest occurred on GoMarkets broker is only as much as 5.86%. But Total Pips value showed the highest is on Raw Pepperstone Account where this account is ECN account that uses a mixture of spreads and commissions.
Total Pips obtained on Raw Pepperstone Account is 1914, in merely VantageFX 1688, and the lowest in GoMarkets that is equal to 1303.
Well, certainly the question that arises is why the value of Total Pips VantageFX only 1688 but it has a larger total profits of 5361 (7.22%)?
Total Pips Pepperstone Raw 1914 or 226 pips higher than VantageFX, but oddly enough it has a smaller total profit of 5320 (6.4%). Different Profit 41 (0.82%) is smaller than VantageFX. From this can be concluded that the spread split into 2 components, commission and spread, may cause an illusion as if profit value is very high when just looking only at the Total Pips. When in fact, are even lower due to Total Pips is merely an illusion.
To be more detailed, 4 forward test account is compared below:
Seen that the Daily or Monthly % profit on VantageFX much higher when compared to other brokers. Expentancy statistical value is also higher.
So it can be concluded that using a broker VantageFX far more profitable than using GoMarkets and Pepperstone due to a spread that is used by VantageFX smaller than other brokers. This article is not to promote VantageFX. This article is purely brokers test to show which ones are most profitable. The selection is up to individual taste.
Using a forward test results that has been running for a week to make conclusions it's still too early. We'll see together how the results next week.
Monday, November 21, 2011
MillionDollarPips (MDP)
After a week of doing forward test, proved that the robot MDP version 1.1.0 and version 2.1.2 can do a good entry and exit and the last week concern that the robot is not able to perform entry is proven wrong.
In version 2.1.2 because of that concerns is a bit "forced" to make entry in last week. Setting the version 2.1.2 was changed to be more aggressive. Ultimately proved to entry exit can be done well but the results are bad :(
1.1.0 MDP aggressiveness setting is located on the parameters Mode_Safe and Mode_HighSpeed. While the MDP 2.1.2 aggressiveness setting lies in the parameter ScalpFactor and VolatilityLimit.
It is known from the 2.1.2 version manual guide as shown below:
For this week will be re-forward test using four different settings as shown above. Forward test will be conducted for 4 MDP 1.1.0 EAs and 4 MDP 2.1.2 EAs using variety settings.
Forward test results for these robots can be monitored in real time at this address: ea.Andromeda-Trading.com
In version 2.1.2 because of that concerns is a bit "forced" to make entry in last week. Setting the version 2.1.2 was changed to be more aggressive. Ultimately proved to entry exit can be done well but the results are bad :(
1.1.0 MDP aggressiveness setting is located on the parameters Mode_Safe and Mode_HighSpeed. While the MDP 2.1.2 aggressiveness setting lies in the parameter ScalpFactor and VolatilityLimit.
It is known from the 2.1.2 version manual guide as shown below:
For this week will be re-forward test using four different settings as shown above. Forward test will be conducted for 4 MDP 1.1.0 EAs and 4 MDP 2.1.2 EAs using variety settings.
Forward test results for these robots can be monitored in real time at this address: ea.Andromeda-Trading.com
Elite EA Forward Test #2
As promised last week, this week carried forward test against 11 EA obtained from the pay-Forex-TSD forum Advanced Elite Section.
Yet the EA are available at Forex-TSD carried forward test, still a small part. EA carried forward test the EA-EA was previously tested by Forex-TSD and proven to generate consistent profits as shown in the figure below:
EA is currently carried forward test is marked with red color.
Forward test results for these robots can be monitored in real time at this address: ea.Andromeda-Trading.com
Yet the EA are available at Forex-TSD carried forward test, still a small part. EA carried forward test the EA-EA was previously tested by Forex-TSD and proven to generate consistent profits as shown in the figure below:
EA is currently carried forward test is marked with red color.
Forward test results for these robots can be monitored in real time at this address: ea.Andromeda-Trading.com
Wednesday, November 16, 2011
Broker News - IBFX
IBFX broker as of the date of 16 November 2011 yesterday formally acquired by TradeStation. Within a maximum of one month then the whole operation will be replaced by TradeStation IBFX.
TradeStation is known other than as a maker of trading software platforms (such as Metatrader), also known as a stock broker, Options, Futures, and Forex. IBFX acquisition is to expand outreach to the forex market where TradeStation been more focused on the stock market, Options, and Futures.
Later the client IBFX besides given the option to keep using MetaTrader, also given the option to try the software Tradestation. The hope by doing acquisitions IBFX then TradeStation software increasingly known that one moment can fully replace the Metatrader.
Here are excerpts from the statement of the Director of TradeStation:
"This is a win-win for IBFX and TradeStation clients and makes TradeStation a global leader in forex trading, dramatically expanding our customer relationships and creating a global operating presence," said Gary Weiss, President of TradeStation Forex, Inc.
Um, "a win-win for clients"? Wait a minute ... :)
At IBFX Corporate Blog is expressed as follows:
"within the next 30 days TradeStation Forex, Inc. will become the counterparty to your forex trades"
In IBFX Corporate Blog stated clearly that TradeStation will become a counterparty of the trading done by his client. This means that the client will be trading against the broker itself - TradeStation.
Like the ant against an elephant:)
From that statement is very clear that IBFX will remain a market maker type broker, it's just using a new way with TradeStation style:)
TradeStation is known other than as a maker of trading software platforms (such as Metatrader), also known as a stock broker, Options, Futures, and Forex. IBFX acquisition is to expand outreach to the forex market where TradeStation been more focused on the stock market, Options, and Futures.
Later the client IBFX besides given the option to keep using MetaTrader, also given the option to try the software Tradestation. The hope by doing acquisitions IBFX then TradeStation software increasingly known that one moment can fully replace the Metatrader.
Here are excerpts from the statement of the Director of TradeStation:
"This is a win-win for IBFX and TradeStation clients and makes TradeStation a global leader in forex trading, dramatically expanding our customer relationships and creating a global operating presence," said Gary Weiss, President of TradeStation Forex, Inc.
Um, "a win-win for clients"? Wait a minute ... :)
At IBFX Corporate Blog is expressed as follows:
"within the next 30 days TradeStation Forex, Inc. will become the counterparty to your forex trades"
In IBFX Corporate Blog stated clearly that TradeStation will become a counterparty of the trading done by his client. This means that the client will be trading against the broker itself - TradeStation.
Like the ant against an elephant:)
From that statement is very clear that IBFX will remain a market maker type broker, it's just using a new way with TradeStation style:)
Monday, November 14, 2011
DrawDown
Drawdown is a term well known in the manufacture of robots forex (Forex Expert Advisor), since this term will be displayed in backtest results.
Unfortunately, the explanation regarding the drawdown is very minimal, even on the website and forums Metatrader maker though.
Only an article that discussed , it was the basis of the discussion is still using the old version of Metatrader where the only known Max Drawdown term only, while the Relative Drawdown unknown .
Note the backtest results above, which contained only Max Drawdown only. While Relative Drawdown, which is known in the current version of MetaTrader backtest, no.
In the backtest results, there is always a third value that is Absolute drawdown Drawdown, Max Drawdown, and Relative Drawdown.
Drawdown values that measure the level of risk is a robot. The higher the value of drawdown, the more risky the robot.
Drawdown Absolute value is the amount of loss that takes capital.
For example, the first time you run the robot, the robot does not immediately make a profit but a loss in advance (although it will return later) so that the capital "consumed". For example, the initial capital of 10,000 and losses suffered before the robot makes a profit is 2000, then listed in Absolute Drawdown is 2000.
What is unclear is the definition as well as differences and Relative Drawdown Maximum Drawdown.
Finally, after searching everywhere do not see well, I make his own interpretation of what the intent of Relative Drawdown Maximum Drawdown and is based on an article on the website maker Metatrader.
In my opinion, Relative Drawdown is the ratio of the difference between the highest and lowest peak that occurred during the robot travels to the top of the highest profit.
In the picture above is the Arrow 1, the Arrow 2 and Arrow 3.
As shown in the figure, a decrease from the highest peak occurs at the Arrow 3, so the value of the ratio of peak difference between the highest and lowest Arrow 3 is what will be shown as Relative Drawdown on backtest results.
Previous Drawdown Relative value is the Arrow 1, but because of the Arrow 2, which later formed Drawdown Relative value is larger then replaced with a value of Relative Drawdown Arrow 2, which was then replaced again with Arrow Drawdown Relative value of 3 because its value is greater than the Arrow 2.
Maximal Drawdown indicated by Red Arrow thickness on the far right, where the highest peak value is compared with the lowest overall total.
The conclusion that can be taken, the greater the value of Maximal Drawdown, the greater the risk of the robot as it shows the highest peak and lowest overall.
That is, if the value of Max Drawdown is very large, then the possibility of loss will be higher than the profit because the robot has a very sharp decline resulting in earnings and capital can be instantaneously vanish due to the sharp decline.
While Relative Drawdown does not depict actual risk due to temporary nature which are always replaced with a subsequent decline in value is greater.
Thus, it does not matter if the value of the Relative Drawdown Maximum Drawdown along its value remains small.
A good robot should have a small value of Maximal Drawdown, the smaller the value, it means that the robot will not experience a significant decline in profits due to loss and decline each time the robot will always succeed doing recovery.
Maximal Drawdown is very important because it shows the overall decline in value, unlike the case with Relative Drawdown in which only shows the temporary decline in profits.
Based on the above ideas, let us analyze the results of robot backtest Revision 3.a. below:
Revision Robot 3.a. Absolute value 567.22 Maximal Drawdown Drawdown of 4.03% and 33.81% Relative Drawdown.
That is, the robot Revision 3.a. so run will "eat" the initial capital $ 10,000 (Initial Deposit) due to a loss of $ 567.22.
Then during a trip to the top of the highest profit (Net Profit) $ 120,217,260.38 will experience the deepest decline due to loss of about 33.81% or $ 180,224.81 (Relative Drawdown).
Overall, the robot Revision 3.a. will only decrease due to loss of 4.03% (Max Drawdown).
After understanding the backtest results above, it can be concluded that the robot Revision 3.a. This is a robot that has a minimal risk to the ability to obtain the maximum profit.
No wonder, just a week carried forward test, the performance of the robot Revision 3.a. direct shot and beat the robots previous versions:)
Unfortunately, the explanation regarding the drawdown is very minimal, even on the website and forums Metatrader maker though.
Only an article that discussed , it was the basis of the discussion is still using the old version of Metatrader where the only known Max Drawdown term only, while the Relative Drawdown unknown .
Note the backtest results above, which contained only Max Drawdown only. While Relative Drawdown, which is known in the current version of MetaTrader backtest, no.
In the backtest results, there is always a third value that is Absolute drawdown Drawdown, Max Drawdown, and Relative Drawdown.
Drawdown values that measure the level of risk is a robot. The higher the value of drawdown, the more risky the robot.
Drawdown Absolute value is the amount of loss that takes capital.
For example, the first time you run the robot, the robot does not immediately make a profit but a loss in advance (although it will return later) so that the capital "consumed". For example, the initial capital of 10,000 and losses suffered before the robot makes a profit is 2000, then listed in Absolute Drawdown is 2000.
What is unclear is the definition as well as differences and Relative Drawdown Maximum Drawdown.
Finally, after searching everywhere do not see well, I make his own interpretation of what the intent of Relative Drawdown Maximum Drawdown and is based on an article on the website maker Metatrader.
In my opinion, Relative Drawdown is the ratio of the difference between the highest and lowest peak that occurred during the robot travels to the top of the highest profit.
In the picture above is the Arrow 1, the Arrow 2 and Arrow 3.
As shown in the figure, a decrease from the highest peak occurs at the Arrow 3, so the value of the ratio of peak difference between the highest and lowest Arrow 3 is what will be shown as Relative Drawdown on backtest results.
Previous Drawdown Relative value is the Arrow 1, but because of the Arrow 2, which later formed Drawdown Relative value is larger then replaced with a value of Relative Drawdown Arrow 2, which was then replaced again with Arrow Drawdown Relative value of 3 because its value is greater than the Arrow 2.
Maximal Drawdown indicated by Red Arrow thickness on the far right, where the highest peak value is compared with the lowest overall total.
The conclusion that can be taken, the greater the value of Maximal Drawdown, the greater the risk of the robot as it shows the highest peak and lowest overall.
That is, if the value of Max Drawdown is very large, then the possibility of loss will be higher than the profit because the robot has a very sharp decline resulting in earnings and capital can be instantaneously vanish due to the sharp decline.
While Relative Drawdown does not depict actual risk due to temporary nature which are always replaced with a subsequent decline in value is greater.
Thus, it does not matter if the value of the Relative Drawdown Maximum Drawdown along its value remains small.
A good robot should have a small value of Maximal Drawdown, the smaller the value, it means that the robot will not experience a significant decline in profits due to loss and decline each time the robot will always succeed doing recovery.
Maximal Drawdown is very important because it shows the overall decline in value, unlike the case with Relative Drawdown in which only shows the temporary decline in profits.
Based on the above ideas, let us analyze the results of robot backtest Revision 3.a. below:
Revision Robot 3.a. Absolute value 567.22 Maximal Drawdown Drawdown of 4.03% and 33.81% Relative Drawdown.
That is, the robot Revision 3.a. so run will "eat" the initial capital $ 10,000 (Initial Deposit) due to a loss of $ 567.22.
Then during a trip to the top of the highest profit (Net Profit) $ 120,217,260.38 will experience the deepest decline due to loss of about 33.81% or $ 180,224.81 (Relative Drawdown).
Overall, the robot Revision 3.a. will only decrease due to loss of 4.03% (Max Drawdown).
After understanding the backtest results above, it can be concluded that the robot Revision 3.a. This is a robot that has a minimal risk to the ability to obtain the maximum profit.
No wonder, just a week carried forward test, the performance of the robot Revision 3.a. direct shot and beat the robots previous versions:)
How to Big Profit?
Observing various trading contest is very exciting for me. Besides trading can learn the correct way of champions, can also see how much potential the forex trading.
Observations so far indicate that, on average, who won the contest are those who are able to generate profits between 15 to 20 times a month. The highest record ever achieved is 40 times profit in a month and this only happens once just for me to observe a variety of trading contest in recent years.
But profit 40 times is a very rare, on average, who won the contests are only capable of 15-20 times a month profit trading.
Not only you are amazed with the acquisition of profit by it, I was too:)
Bagaimananya ya do? Indicators of what it is used? How it could profit by it? Those questions that always crossed my mind and I'm sure your course is the same as well:)
Taste-it seems to me unlikely this can be achieved. Especially during these trying trading result was always muddy and messy, how possibly could profit by it? No need 15-20 times, 1-2 times as much just enough hard as hell.
When you browse the various forums that exist on the Internet, the acquisition of profit more than 1 fold (or 100%) in a month is a fantastic thing. Most are located in the forum or that offer managed account services is able to generate profits between 5% to 30% in a month. That alone is quite remarkable and has been regarded as a great trader.
I have never met in any forum there are a trader who revealed that he was able to produce over 10-fold within a month. Information about this does not exist anywhere. Champions contest was always silent when asked how they could profit by it.
Well, how could profit by it if there is no any information? Confused is not it?
Begin I thought to myself, surely the champions are using an indicator of a "very powerful":) It might profit by it if not using a precision indicator
Finally began the hunt for the indicator "magic", all the indicators that are available on the internet do download and trial. However, after nearly 5,000 (five thousand!:)) Custom indicators tested, only then realizing that no single indicator of the precision and the "magic".
Desperate and confused, started to hit, how?
Until one day I read in a forum (forget which) which states:
"There is only 1 indicator in this world which will make perfect trading, look in the mirror and you will see it"
Who realize that the sentence is not the indicator of "magic" to make a major trading profitable, but how to market myself to understand the behavior and use of existing indicators.
Chart is actually a complicated puzzle, only one way to beat that train the brain, eyes and hands (for a mouse click:)) to solve the puzzles. How to do it? Brainwashing by looking at the chart again and again until eventually it slowly pattern that existed at the start seemingly puzzle.
Paradigm is tantamount to the question "Why Tiger Woods could be the golf championship when used the same stick with which we use?". Not because of his golf stick more "magic", but because he understood exactly how to use the stick.
Do not expect an understanding of market behavior or golf stick or indicator can be obtained only in a few months. It took me years to understand it. Therefore, in trading, trading experience under 5 years are still regarded as a newbie or just learning.
Therefore, if your trading experience is still below 5 years and still continued loss, chill out and should never despair because it is a reasonable proficiency level:)
Instil confidence remains in my heart that someday all try and be able to persevere through failure, the light will illuminate your mind and eventually be able to read the behavior of market
Here are the results of trials in demo trading this week:
Extraordinary is not it?
But actually no, there are many errors that occur. Entry exit is sometimes still too fast or too slow, no discipline with stop losses, misread the direction of the trend but luck finally be able to profit, and so forth. Still need more practice more so that the mistakes that occurred more minimal.
The next question that arises is usually a "powerful indicator of what is used"?
Naturally, because I always wondered was like that too:)
Who used only standard indicators. From the beginning I always liked to learn trading Stochastic, for some reason, perhaps because it uses two lines making it easier to read. Another indicator used is the MACD, Bollinger, and several lines Moving Average. Just that alone is used.
Conclusions obtained during trading, sometimes misleading indicator because it shows the wrong direction. That saves only the understanding of market behavior.
When you see the market trading as anticipated, you already know what to do.
Understanding of market behavior causes the direction of the trend is looming in the head, the direction now, where will the next. Therefore, when the indicator shows the direction that is misleading, will remain safe because the image of the existing market patterns in the head.
Chart was originally like a complicated puzzle, but once understood it will be known behavior pattern. These capabilities are owned by the contest champions, not because of the indicator "magic".
However, it should be understood that the trading system is a common indicator is personal. That is, do not continue because I use Stochatic then you follow it too. All indicators are the same, if you prefer to use MACD as a leading indicator, so use it alone.
Express your personality trading system, use it to suit your own personality and should never force myself to use that is not liked or understood.
I myself do not get along and do not like long term trading (except under conditions that take a long time trending). It was also just I know. Trading performance I did even better when trading using scalping, and out in no time.
For me, good trading is a way to minimize the risk was or was not to expose too long in the market. However, no one can predict the market accurately. With in and out in no time, then the market risk of a sudden U-turn can be further minimized.
In addition, longterm trading for me is very boring:) More comfortable in and out quickly because it requires constant concentration. Mathematical calculation is more profitable than the long term because scalping entry was swift exit when a reversal is taking place.
Instead of letting long term continuous wide-open entry in a long time and follow the retrace to the end profit targets can be achieved. The problem, if the alleged merely retrace but then it turns out that there is a trend reversal, then yes definitely, because the original entry will turn profit into loss:)
Therefore, find the right trading system according to the personality of each. Every person is different character, will surely have a different way as well.
Find out how it and never listen to others' opinions.
Trading is a personal, depending on the mindset and worldview each of which is by yourself is true. Let others argue the other, but still hold on to the way you have your own.
What if the means used was wrong?
Easy, you will understand by itself later on, because time will prove one point. And when that happens, then your perception will change by itself to abandon a wrong and then find the right one.
However, always make sure that the way it will survive and continuously profitable in the long run. Way of trading that can survive long term is still trading with risk measured but the result is maximum, not vice versa.
Professional traders instead of looking at profit, but tend to look at risk. In contrast to the layman, profitlah the objectives. Familiarize yourself to be able to measure risks, eventually profits will automatically follow. If trading is only profit-oriented, does not measure risk, and coupled with a blind way, then the name is not trading, but gambling:)
Gambling fully rely on luck, could have obtained profit. But just try doing something like that a few months, of course, luck will not always follow:)
As noted above, the time that would later prove.
In trading, the belief in yourself is very important. Therefore you should never listen to others' opinions. Analyze and decide for yourself, even if later one but you will learn from those mistakes.
Let us consider together how great the potential of forex trading below:
Each day can produce 141% profit, and if this performance continues and never experienced loss in a month then the profit is estimated to reach 40 times or 4019%. Although it was once at the beginning of the trading loss that occurs 56% drawdown, but able to recover and produce a 709% profit in a trading week.
Well, it could quickly become billionaires about this:)
Look how big the potential forex, capital of five thousand a week can be converted to 40 thousand. But to do things like this entry-exit capability required very accurate.
Due to such a large profit, use a large number of lots as well, which if it turns out one entry exit then the consequences would be fatal, capital and profits obtained before will instantly disappear instantly. Surely in a live trading using money truth, something like this should be avoided because the risk is very high.
Forex is not a quick way to get rich, but gradually will become rich. The principle of trading is right is coumpounding, gathering little by little over time into a hill.
Imagine if the trading week with a capital of 5000 and each week could result in 1-2 fold alone is more than enough. Imagine if every week can produce 50-10 thousand dollars, or about 45 million to 90 million rupiah, then the director's salary in a month was lost:)
Tube just a little profit and use for their daily needs, of course 1-2 years later you will become rich. Rather than forcing trading to achieve 20-fold, and so there is only one entry only once, the entire capital and profits vanish instantly.
The main principle of trading is compounding, which can be obtained only by a consistent manner that is capable of continuous profit in the long run. Acquired skills by practicing in advance consistency in the demo, and then move to live trading when it proved to be consistent.
Do not ever think demos and live differently, both are the same. So if you have not been able to consistently profit in the demo, it was clear in the live trading will be more severe. Live trading is more demanding because of the emotional maturity of psychological pressure and stress levels are higher due to the realization that the money used is truth.
More efficient practice on a demo earlier than force myself live trading.
Hopefully this can remove the curiosity of how to contest champions earn a fantastic profit.
Observations so far indicate that, on average, who won the contest are those who are able to generate profits between 15 to 20 times a month. The highest record ever achieved is 40 times profit in a month and this only happens once just for me to observe a variety of trading contest in recent years.
But profit 40 times is a very rare, on average, who won the contests are only capable of 15-20 times a month profit trading.
Not only you are amazed with the acquisition of profit by it, I was too:)
Bagaimananya ya do? Indicators of what it is used? How it could profit by it? Those questions that always crossed my mind and I'm sure your course is the same as well:)
Taste-it seems to me unlikely this can be achieved. Especially during these trying trading result was always muddy and messy, how possibly could profit by it? No need 15-20 times, 1-2 times as much just enough hard as hell.
When you browse the various forums that exist on the Internet, the acquisition of profit more than 1 fold (or 100%) in a month is a fantastic thing. Most are located in the forum or that offer managed account services is able to generate profits between 5% to 30% in a month. That alone is quite remarkable and has been regarded as a great trader.
I have never met in any forum there are a trader who revealed that he was able to produce over 10-fold within a month. Information about this does not exist anywhere. Champions contest was always silent when asked how they could profit by it.
Well, how could profit by it if there is no any information? Confused is not it?
Begin I thought to myself, surely the champions are using an indicator of a "very powerful":) It might profit by it if not using a precision indicator
Finally began the hunt for the indicator "magic", all the indicators that are available on the internet do download and trial. However, after nearly 5,000 (five thousand!:)) Custom indicators tested, only then realizing that no single indicator of the precision and the "magic".
Desperate and confused, started to hit, how?
Until one day I read in a forum (forget which) which states:
"There is only 1 indicator in this world which will make perfect trading, look in the mirror and you will see it"
Who realize that the sentence is not the indicator of "magic" to make a major trading profitable, but how to market myself to understand the behavior and use of existing indicators.
Chart is actually a complicated puzzle, only one way to beat that train the brain, eyes and hands (for a mouse click:)) to solve the puzzles. How to do it? Brainwashing by looking at the chart again and again until eventually it slowly pattern that existed at the start seemingly puzzle.
Paradigm is tantamount to the question "Why Tiger Woods could be the golf championship when used the same stick with which we use?". Not because of his golf stick more "magic", but because he understood exactly how to use the stick.
Do not expect an understanding of market behavior or golf stick or indicator can be obtained only in a few months. It took me years to understand it. Therefore, in trading, trading experience under 5 years are still regarded as a newbie or just learning.
Therefore, if your trading experience is still below 5 years and still continued loss, chill out and should never despair because it is a reasonable proficiency level:)
Instil confidence remains in my heart that someday all try and be able to persevere through failure, the light will illuminate your mind and eventually be able to read the behavior of market
Here are the results of trials in demo trading this week:
Extraordinary is not it?
But actually no, there are many errors that occur. Entry exit is sometimes still too fast or too slow, no discipline with stop losses, misread the direction of the trend but luck finally be able to profit, and so forth. Still need more practice more so that the mistakes that occurred more minimal.
The next question that arises is usually a "powerful indicator of what is used"?
Naturally, because I always wondered was like that too:)
Who used only standard indicators. From the beginning I always liked to learn trading Stochastic, for some reason, perhaps because it uses two lines making it easier to read. Another indicator used is the MACD, Bollinger, and several lines Moving Average. Just that alone is used.
Conclusions obtained during trading, sometimes misleading indicator because it shows the wrong direction. That saves only the understanding of market behavior.
When you see the market trading as anticipated, you already know what to do.
Understanding of market behavior causes the direction of the trend is looming in the head, the direction now, where will the next. Therefore, when the indicator shows the direction that is misleading, will remain safe because the image of the existing market patterns in the head.
Chart was originally like a complicated puzzle, but once understood it will be known behavior pattern. These capabilities are owned by the contest champions, not because of the indicator "magic".
However, it should be understood that the trading system is a common indicator is personal. That is, do not continue because I use Stochatic then you follow it too. All indicators are the same, if you prefer to use MACD as a leading indicator, so use it alone.
Express your personality trading system, use it to suit your own personality and should never force myself to use that is not liked or understood.
I myself do not get along and do not like long term trading (except under conditions that take a long time trending). It was also just I know. Trading performance I did even better when trading using scalping, and out in no time.
For me, good trading is a way to minimize the risk was or was not to expose too long in the market. However, no one can predict the market accurately. With in and out in no time, then the market risk of a sudden U-turn can be further minimized.
In addition, longterm trading for me is very boring:) More comfortable in and out quickly because it requires constant concentration. Mathematical calculation is more profitable than the long term because scalping entry was swift exit when a reversal is taking place.
Instead of letting long term continuous wide-open entry in a long time and follow the retrace to the end profit targets can be achieved. The problem, if the alleged merely retrace but then it turns out that there is a trend reversal, then yes definitely, because the original entry will turn profit into loss:)
Therefore, find the right trading system according to the personality of each. Every person is different character, will surely have a different way as well.
Find out how it and never listen to others' opinions.
Trading is a personal, depending on the mindset and worldview each of which is by yourself is true. Let others argue the other, but still hold on to the way you have your own.
What if the means used was wrong?
Easy, you will understand by itself later on, because time will prove one point. And when that happens, then your perception will change by itself to abandon a wrong and then find the right one.
However, always make sure that the way it will survive and continuously profitable in the long run. Way of trading that can survive long term is still trading with risk measured but the result is maximum, not vice versa.
Professional traders instead of looking at profit, but tend to look at risk. In contrast to the layman, profitlah the objectives. Familiarize yourself to be able to measure risks, eventually profits will automatically follow. If trading is only profit-oriented, does not measure risk, and coupled with a blind way, then the name is not trading, but gambling:)
Gambling fully rely on luck, could have obtained profit. But just try doing something like that a few months, of course, luck will not always follow:)
As noted above, the time that would later prove.
In trading, the belief in yourself is very important. Therefore you should never listen to others' opinions. Analyze and decide for yourself, even if later one but you will learn from those mistakes.
"Keep your own counsel, avoid gurus.
Jesse Livermore viewed trading as a "lone-wolf" business, and it is.
Learn to read the market and make your own decisions."
Five Trading "Don’ts" and What to Do About Them
Let us consider together how great the potential of forex trading below:
Each day can produce 141% profit, and if this performance continues and never experienced loss in a month then the profit is estimated to reach 40 times or 4019%. Although it was once at the beginning of the trading loss that occurs 56% drawdown, but able to recover and produce a 709% profit in a trading week.
Well, it could quickly become billionaires about this:)
Look how big the potential forex, capital of five thousand a week can be converted to 40 thousand. But to do things like this entry-exit capability required very accurate.
Due to such a large profit, use a large number of lots as well, which if it turns out one entry exit then the consequences would be fatal, capital and profits obtained before will instantly disappear instantly. Surely in a live trading using money truth, something like this should be avoided because the risk is very high.
Forex is not a quick way to get rich, but gradually will become rich. The principle of trading is right is coumpounding, gathering little by little over time into a hill.
Imagine if the trading week with a capital of 5000 and each week could result in 1-2 fold alone is more than enough. Imagine if every week can produce 50-10 thousand dollars, or about 45 million to 90 million rupiah, then the director's salary in a month was lost:)
Tube just a little profit and use for their daily needs, of course 1-2 years later you will become rich. Rather than forcing trading to achieve 20-fold, and so there is only one entry only once, the entire capital and profits vanish instantly.
The main principle of trading is compounding, which can be obtained only by a consistent manner that is capable of continuous profit in the long run. Acquired skills by practicing in advance consistency in the demo, and then move to live trading when it proved to be consistent.
Do not ever think demos and live differently, both are the same. So if you have not been able to consistently profit in the demo, it was clear in the live trading will be more severe. Live trading is more demanding because of the emotional maturity of psychological pressure and stress levels are higher due to the realization that the money used is truth.
More efficient practice on a demo earlier than force myself live trading.
Hopefully this can remove the curiosity of how to contest champions earn a fantastic profit.
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