GBPUSD thoughts

[Triple B]

Why do you need to back test all 27?

1. because I can
2. So I can see if there are pairs that seem to have better returns with my algo.
possibly leaving out some for trading or trading the better pair if one currency has multiple trades
3. So I can estimate drawdowns and returns expected.When I see a drawdown within expected levels , I can stick with the plan ie Confidence
4. After a year I can review and see if the backtesting was giving reasonable results compared to forward results.
5. So I can compare completed algos to one another .
I also intend to forward test 3 or 4 algos together once I have a few to choose from

 

[cogs]

I discovered a long time ago with coding and testing my EA's that if an EA is profitable on only one pair, or only profitable on ranging pairs, like what NNFX suggests 'as best pairs to trade', will eventually fail.
Rationale - at any given stage (or period) a ranging pair can behave just like a non-ranging pair, hence your system fails.
I like a lot of what NNFX has to say, but like I mentioned it suits his views and the goal of trading for a living.
Pairs like audnzd, eurbgp, audcad, eurchf etc eventually change range. They lull traders into a false sense of security.

I agree with your testing method Triple B across more pairs, it reduces the number of erroneous trades, drawdown etc. but increases potential profitability outcome.

 

[willoneau]

Ok I am back trading FX, after the corona virus market crash and my stock system going to cash I have decided to once again look at FX. I have spent the last few weeks putting together and testing a Strategy to trade the currency markets.

 

[willoneau]

I am demo trading it at moment with the intention to go live once account doubles.
I use 30min time frame for my setup and entry and daily time frame to determine trend direction.
Since I am a shift worker I have had to serious look at the way I am trading as the lower time frames I traded before was very hard

 

[willoneau]

Since I live in WA my trading day starts after 10am, I then look at setups.
Once in a trade I scale out half my position at 2R then move my stop to BE.
This covers my Risk and helps nullify the trades were my initial stop is taken out for a loss.

 

[noirua]

TIPS versus Bonds:
Treasury Inflation Protected Securities
https://www.thebalance.com/what-are-treasury-inflation-protected-securities-3306098
https://www.investopedia.com/terms/t/tips.asp

A boring world to hold USDs but one worth looking at for those with a chunk of cash with no home at present.

 

[willoneau]

TIPS versus Bonds:
Treasury Inflation Protected Securities
https://www.thebalance.com/what-are-treasury-inflation-protected-securities-3306098

A boring world to hold USDs but one worth looking at for those with a chunk of cash with no home at present.

Waiting for system to give signals again at this stage thanx.

 

[willoneau]

Starting Capital $10,000 have positions on at moment and will update when at home.