Ever wondered if you can snag just 10 pips a day? It’s a classic question in the trading community, and as a beginner, I find it particularly fascinating. Honestly, even scoring those 10 pips in live trading feels like a tall order sometimes!
To tackle this, I decided to conduct a little experiment aiming for my daily 10 pips. I ended up devising a once-a-day trading strategy that places a single trade at the start of each trading day. The idea? First, trade with the trend, then go against it, and play around with stop orders featuring specific stop-loss (SL) and take-profit (TP) levels.
In the end, I created an Expert Advisor (EA) that opens one position a day, going against the trend at a designated hour. Now, what does “trend” mean in my EA? It’s simply the price difference over the last N hours. After some optimization, I stumbled upon an intriguing profit curve—just as one often does!
This setup yielded a winning trade ratio of 6:1 and a maximum consecutive wins/losses of 26:2. To boost performance, I incorporated a Martingale approach for smart money management (MM), and the profit curve became even more appealing! 😊 This EA has shown to be profitable over the last seven years, particularly when employing a maximum risk MM strategy, rather than a fixed lot size. Admittedly, results from earlier years weren’t as impressive.
Main Characteristics:
- Currency: EUR/USD
- Timeframe: Chosen automatically by the EA (customizable)
- Open Position at: 07:00 CET
- Max Age of Open Position: 21 hours (75,600 seconds)
- Hours to Check Price Difference for Trend: 30 hours
Graph for 2008
Report for 2008
Graph for 2003 - 2008
Report for 2003 - 2008
You can tweak these variables to explore different results:
- FIXLOT: If set to 0, uses maximum risk variable to determine lot size; otherwise, it uses this fixed amount for trading.
- MINLOTS: Minimum lot size.
- MAXLOTS: Maximum lot size.
- MAXIMUMRISK: Maximum risk. If using FIXLOT = 0, you might find better results with FIXLOT = 0 and MAXIMUMRISK = 0.05 (or 0.02).
- SLIPPAGE: Maximum allowed slippage.
Other essential settings include:
- TRADINGHOUR: Time to open the position.
- HOURSTOCHECKTREND: Hours to assess price differences for trend identification.
- ORDERMAXAGE: Maximum age of the position, after which older positions will be closed.
The Martingale strategy incorporated in the EA means that after a losing position, the lot size of the next trade is multiplied. The multipliers are as follows:
- FIRSTMULTIPLICATOR: Lot multiplier after a loss in position -1.
- SECONDMULTIPLICATOR: Lot multiplier after a loss in position -2.
- THIRDMULTIPLICATOR: Lot multiplier after a loss in position -3.
- FOURTHMULTIPLICATOR: Lot multiplier after a loss in position -4.
- FIFTHMULTIPLICATOR: Lot multiplier after a loss in position -5.
Additional features include:
STOPLOSS
TRAILINGSTOP
TAKEPROFIT
A question for seasoned traders: What do you think? Is this just over-optimized for past performance, lacking future success potential, or does this trading style have a sound rationale?
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