I need feedback on this system

[MarianoM]

Hi everybody, I have an EA with the following rules, I would like to know how I can improve it. What would you change or add? Any feedback or idea would be great.

Trigger:

1) Price breaks Parabolic Sar in M15

Conditions:

2) Daily candle: at least 100 pips bull candle for buys / at least 100 pips bear candle for sells

3) 4hs candle: at least 20 pips bull candle for buys / at least 20 pips bear candle for sells

4) ADX chart M15 above value 15

Money Management:

1) Risk 5% on each trade

2) SL: 100 pips TG: 150 pips

3) When profits 50% of TP, close 50% position and move stop to 50 pips from BE (if I move stop to BE it stops me out more often than not, only reducing the stops solves this)

I attach an example of a positive trade

 

[interdim]

Too much risk to begin with...Have you done any real time trades with real money on the line?

 

[MarianoM]

Yes, but only with a micro account. the system is stable, but no profits yet. I feel I've got something interesting here but I still have to improve it ... that's the reason of my post.

Do you think 5% is too much risk? I thought it was moderate because I scale out. Do you recommend 2% rule?

 

[trend2009]

why not do some backtest?

 

[interdim]

Not sure about scaling out, yes 5% is too much risk. You can backtest but the results can be misleading.

 

[MarianoM]

Ok, I'll reduce risk.

I already backtested, ther results are misleading as interdim says. On live trading I end up break even. Any suggestion about possible changes to the system?

 

[gaussian]

I already backtested, ther results are misleading as interdim says

Then you're doing it wrong. Start over, and this time don't overfit to historical data.

 

[Bum]

Hi everybody, I have an EA with the following rules, I would like to know how I can improve it. What would you change or add? Any feedback or idea would be great.

Trigger:

1) Price breaks Parabolic Sar in M15

Conditions:

2) Daily candle: at least 100 pips bull candle for buys / at least 100 pips bear candle for sells

3) 4hs candle: at least 20 pips bull candle for buys / at least 20 pips bear candle for sells

4) ADX chart M15 above value 15

Money Management:

1) Risk 5% on each trade

2) SL: 100 pips TG: 150 pips

3) When profits 50% of TP, close 50% position and move stop to 50 pips from BE (if I move stop to BE it stops me out more often than not, only reducing the stops solves this)

I attach an example of a positive trade

In the example you gave, looks like SL = 10 and TP = 15.
With spread of 2.4 factored in, your SL = 12.4 and TP = 12.6.
Might want to leave SL but increase TP. Spread is too much of a factor in profit/loss with such a small target.
Looking @ your example you can see how "tiny" your win was relative to potential.

***BTW, back-test a waste of time IMO. Completely unreliable for something like this.

 

[MarianoM]

Hi Bum, thanks for your answer. SL is 100 pips and TP is 150 pips after spread (I mean already taking spread into account), but I'm with micro account.
I outlined the 3 posibilities I foresee for each trade:

Trading live I always end up slightly below BE. It seems as if I had to add something else to the system, but I can't figure out what.

 

[HobbyTrading]

Trading live I always end up slightly below BE. It seems as if I had to add something else to the system, but I can't figure out what.

Have you included commissions in your calculations?