I am testing by two main EA's on Demo charts at present which were build on EA Lab. As it's the weekend, I have been studying all the action from this week. Particularly I am trying to work out how the hell one of my designs actually makes money.
It still has me mystified.
Its based on a selected moving average using multiple trades to make a profit. To be honest, I never thought a moving average model would ever work but you never know tell you give anything a go on demo. I now have around 7 Demo charts running or I should say optimizing different strategy's to attempt to find one gold nugget out of a lot of coal. That means I have 4 computers working over time for probably not much reward.
I thought I would describe this strategy's madness.
Start date 4th November on Demo - MET-
Pips gained -15,180
Pips Lost - 11,930
Profit - 3,251
Lots traded- 11.1
Current trades open - 53 ( 20 charts open )
This crazy model tests very profitability over a few years but honestly I am yet to be convinced. I should know by early next year.
Its set for small size trades at present, god help me if I run it larger.
But here's the most interesting thing I have learned out of building this model over the last two months.
The simple moving average - SMA - just kills the Exponential moving average hands down. The model is quite profitable only with a SMA.
That has made me re-evaluate my other strategy's that I trade manually over the last 10 years with EMA's and see whether they could be improved better by using SMA's to determine BIAS. I need the correct Bias to determine whether the pullback is valid or invalid.
It does seem now I should alter my core strategy's.
The prove in the pudding seems to be improved profitability for by 1 minute chart trading.
