^eagle^
10-22-2008, 06:50 PM
Ok me , Earl and Short14 Are the only ones crazy enough to try these multiple trades strategy so I decided to name it the Supercharger!
I own a truck with a supercharger and basically it sucks in more air giving my truck extra get up and go.
That is what we have done to FAP.
Here's how it works:
After you have loaded FAP you input these settings.
lots =1/10th of whatever you are comfortable trading with (<.1% of your account balance)
Maximum open trades=10
If you want to be more conservative Lower your number of trades and riase your lot size proportionately.
Experiment with lot sizes and trade numbers to you find what is comfortable for you.
Stop time=1
Now the aaa bbb settings are still up for debate
I personally think the defaults are fine because market conditions change. They are in constant flux and past performance does not guarantee future returns. The only true testing is forward testing.
If you want optimized settings I'm sure earl will supply them here:p
Now the stop loss question.....
This is strictly how well you can tolerate risk. I personally cannot sleep at night without one. I have set it to 350. My reasoning is that the eur/usd ranges at this level when it is in consolidation. This is when FAPSC makes the most money.
Price action consists of the following...
60% of the time the market is in consolidation
20% of the time the market is channelling up or down.
20% or less of the time the market makes huge moves up or down.
This last time is the time the stop losses are hit the rest of the time it is just a safety measure.
IOW Stop losses do not get hit over 80% of the time the market is moving. Mathematically you will win out by the shear number of winning trades over the few but larger losses.
Once FAPSC is up and running there are a few rules to follow.
If you get too many longs or shorts you will become unhedged. This is known as "hitting the wall". What that means is that your margin level increases and put you in danger of a margin call. You also have 8 or more trades open and are not making any money. You can remedy this by
a) going all long if you have a lot of open shorts or viceversa.
b) Manually closing out your biggest losers to free up new trades
A gauge to measure how far you are from "the wall" is your margin percentage. A conservative margin is 1000% or higher. A more agressive approach is to go as low as 250% but that requires more risk.
For End of month closeout strategies:
a) Just let it close out and wipe the slate clean
b) "jump" the end of the month by shutting down on the last trading day BEFORE market close Then restarting it on the second trading day of the month. (use your MT4 platform time and date)
c) Shut off the Supercharger a few days before the end of the month and coast into next month before firing it up again.
I'm working on an easy to understand forecasting tool to allow you to know when to coast and when to put the pedal to the medal. Stay tuned!
I own a truck with a supercharger and basically it sucks in more air giving my truck extra get up and go.
That is what we have done to FAP.
Here's how it works:
After you have loaded FAP you input these settings.
lots =1/10th of whatever you are comfortable trading with (<.1% of your account balance)
Maximum open trades=10
If you want to be more conservative Lower your number of trades and riase your lot size proportionately.
Experiment with lot sizes and trade numbers to you find what is comfortable for you.
Stop time=1
Now the aaa bbb settings are still up for debate
I personally think the defaults are fine because market conditions change. They are in constant flux and past performance does not guarantee future returns. The only true testing is forward testing.
If you want optimized settings I'm sure earl will supply them here:p
Now the stop loss question.....
This is strictly how well you can tolerate risk. I personally cannot sleep at night without one. I have set it to 350. My reasoning is that the eur/usd ranges at this level when it is in consolidation. This is when FAPSC makes the most money.
Price action consists of the following...
60% of the time the market is in consolidation
20% of the time the market is channelling up or down.
20% or less of the time the market makes huge moves up or down.
This last time is the time the stop losses are hit the rest of the time it is just a safety measure.
IOW Stop losses do not get hit over 80% of the time the market is moving. Mathematically you will win out by the shear number of winning trades over the few but larger losses.
Once FAPSC is up and running there are a few rules to follow.
If you get too many longs or shorts you will become unhedged. This is known as "hitting the wall". What that means is that your margin level increases and put you in danger of a margin call. You also have 8 or more trades open and are not making any money. You can remedy this by
a) going all long if you have a lot of open shorts or viceversa.
b) Manually closing out your biggest losers to free up new trades
A gauge to measure how far you are from "the wall" is your margin percentage. A conservative margin is 1000% or higher. A more agressive approach is to go as low as 250% but that requires more risk.
For End of month closeout strategies:
a) Just let it close out and wipe the slate clean
b) "jump" the end of the month by shutting down on the last trading day BEFORE market close Then restarting it on the second trading day of the month. (use your MT4 platform time and date)
c) Shut off the Supercharger a few days before the end of the month and coast into next month before firing it up again.
I'm working on an easy to understand forecasting tool to allow you to know when to coast and when to put the pedal to the medal. Stay tuned!