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Hi Rene,
The nice thing about a portfolio of EAs is that when a few of them are going through a drawdown the others are profiting which smooths out the balance line so the overall drawdown is less. One way to determine the overall drawdown is to run the portfolio in a demo account for a month and then determine what the overall drawdown. From that you can then calculate lot size based upon the account risk you are willing to accept. It sounds like you have EA Studio, so you can add the EAs to the portfolio in EA Studio and look at the stats to determine the overall drawdown and then base your risk from that.
It is very unlikely that all 10 EAs will hit SL but how many of the will? So you still have the same issue as to how to determine risk.
Alan,
Those are where the market reversed direction so the ‘Amount to close on reduction’ kicked in and closed the current trade and opened an opposite direction trade. Then the market reversed directions several times causing the EA to close out trades short of TP. Then finally the trend resumed and finally the EA closed at SL.
Alan,
With lot size set to 0.30 means that each pip is worth $3.00. So when SL is set to 30 pips it means that when your trade is stopped out you would have a loss of $90.00. When TP is set to 60 pips then profitable trade would be $90.00.
Alan,
It depends upon the robot. Basically, the way to reduce risk is to keep lot size small. How small? This is where backtesting or testing in a demo account can help. Backtesting, or demo trading for a month or two, will give a good idea of how much is the typical drawdown. From this information you can then determine the lot size you should use.
What robot are you referring too and I can give you an idea of the lot size you should use.
Alan,
Hi Nicholas,
Answer to question 1) The EA’s are the same. They are coded differently as MT4 and MT5 have different languages. So yes you can use MT5 for testing and then MT4 for live trading. However, be aware of one thing: If MT5 is on a different broker or different prop firm than MT4 then there could be some difference as each broker or prop firm will have somewhat different histortical data.
Answer to question 2) One week or two weeks is not sufficient backtest to see how the EA will perform over the long term as during such short periods of time the market could be trending without any significant retrace or drawdown. During longer periods of time such as one month or longer then the market is more likely to have some small retraces and even a drawdown. If you are going to run your EA for a month or longer than you want to know how it will perform during retraces or drawdown. So it is recommended if you are going to run an EA for a month or longer that you at least backtest it for one month.
Answer to question 3) There is no right or wrong answer to this question. I have used the best 1 to 3 EAs and have found that the 10 EAs they were selected from actually performed better than the few I selected. Then again I have had the opposite occur. The one nice thing about running all the EA’s is that they will compensate for each other. What I mean by that is when one or two EAs are going through a drawdown the others most likely could be profiting, this helps to minimize drawdowns. So, since it is difficult to decide to run 1 to 3 EAs or the whole lot, what I do when I want to have more than a 1% account risk I will then run all the EA’s to minimize drawdown. If I just run 1 to 3 EAs then I keep my account risk to 1% because the drawdowns will most likely be greater. So, running the whole lot with a 2% risk also helps to increase profit. So running the whole lot helps to keep drawdown to a minimum while at the same time increases the chance of greater profit.
Hope this helps!
Alan,
You must keep your computer running from Monday through Friday. If you close your computer MT5 will stop working so any open trades will not close if TP or SL is hit. If you cannot keep your computer running then you would need to have a VPS.
Alan,
The following is the recommended lot sizes for given account sizes. These recommendations will limit your account risk to 1% keeping you from losing your account.
Alan,
You should receive an email with link to v5.0. If you do not receive an email then email support.
Alan,
You need to remove the robot from the chart. Then click the Algo Trading button in the tool bar so it turns green. Next reinstall the robot on the M15 chart. Now it should be turned on!
Alan,
