Latest from Forexbody

Latest from Forexbody 09/27/2010

This update will be called V3.73 Proceed to conclusion

The main focus of the new version: Put an end to the possibility of the bleeding trade, using additional logic in the new version that will close a bleeding trade on stages ( without ever using conventional stop loss as and option)

You will know when this is ready, We are getting close !

Below are the main points of focus for this Major Haul to the code:

- Automatically Close a bleeding trade over stages of hours, days, or weeks, ( and we will provide best settings as usual )

-Automatically Prevent a bleeding trade from being joined by another ( that is just the security you need )

-Ability to set maximum number of allowable trades per direction.

-Ability to set individual trade times as per business day ( Forex trading day ) tracing weekly and daily pattern.

-Not a greedy guy? - we will provide minimum risk template now as well. but do not expect minimum risk setting to trade on tiny Forex accounts ( minimum size could be $1000, so you can grow your small account using normal settings template and when equity reaches $1000 simply switch to minimum risk template to have peace of mind )

The graph below shows typical performance of current version 3.72.02 ( $1000 / 80 days Ending on Sept 21 Margin Call during one of the most unusual forex trading storms ever known ! ), We are going to make this a milestone in the development of this powerful Expert advisor .

Version 4: NO, Lets leave that term for the future, This is Version 3.73 !

All you have to do to update is download and go to your Installer panel, Pick the Install button above your broker name to pop up the folder , Select all 3 folders and copy to your MT4 directory while it is not running. You can get to your MT4 directory by right clicking on its icon on your desktop then finding target. After that start your MT4 software and select the new template. If you have so many Forexbody templates in your MT4 directory I suggest you delete all old templates before updating.

The test shows that we are putting a tight tie around the neck of the EA, but we have to in order to avoid recent situation.

Grap 1: Results Close Bleeder Disabled From July 1 and on

Grap 2: Close Bleeder Active

We can see that the feature cost us some winnings, made the test curve ugly, and in the end did not make more money or survive the margin call of September 21, in spite of the fact that feature was able to close all sell orders before the big bullish move on that day, except the last Sell order which was opened minutes before the big move at 9 gmt. however if we turned trading on Sunday on again, we will see that the feature would help you survive the margin call of the Sunday trade ( Now Trading on Sundays is disabled ).

Please note that Sept 21 margin call is caused by the market going against us while we have 2 Sell trades bleeding , not just one. That is why the system failed. I was able to g past Sept 21 with some settings, up to the 1.3350 tick but the price on Friday reached 1.3500 !

Also using the new feature showed that a lot more users would survive the August 5 floating trade. even accounts started with $100 !

Take a look at the following graphs, it reveals that we will be closing a lot of trades while losing, meanwhile the market was coming back to close for us with hefty profits. I have shown below all the major bleeders during the above test.

Market returned as soon as 2 floating orders were closed !

The above shows the market return to both the buy and the Sell Trades within less than 24 hours !

The above shows market return to 2 Sell orders, one was closed big loser by the new feature.

The graph shows that with all the trades identified as bleeders and closed, the real killer trade was just opened immediately before that last candle, so its beyond control, A reasonable distance SL would close it but with similar result as if you just get the margin call altogether. assuming that you are using fair margin policy broker like Forexcom Metatrader account. With this policy Forexcom actually returns used margin to the account upon margin call, which will result in continuing to trade normally after getting rid of the offensive trades. More on this below.

The above graph shows bleeder killer applied 3 times, twice on Buy orders and once on a sell order, and in all 3 times the market would have closed these orders without any deductions from account balance.

The above tests start on July 1st and with available on all time frames takes a lot of time , which we do not have much of it so we will concentrate on current month in an attempt to have your new settings ready before market opens. and our challenge is avoiding that margin call.

Conclusion: No stop loss, or bleed killer code can save us from the margin call on Sept 21 without losing substantial amount of the account or substantial part of the EA profitability in general. But The solution is here with new setting provided with version 3.73

Now Here is the proof:

Testing from June 1 to last minute of available market data

So what we should do now?

-We cant continue to take similar chances in the future, because we will have to start over again

-We cant apply stop loss to our strategy, It is like giving our money to the other party on a platter of gold.

-We cant prevent Sept 21 situation by applying the new feature ( Loss Pool or what we can call bleed killer )

I have no choice but get deeper and deeper to find out what happened in the last 3 weeks. As it turns out there were a lot of rumors during the last few weekend about the bullish EUR and weak Dollar. The Asian Market opens as the Forex market opens globally. Asian thinking bullish on Sundays and Mondays. The price moves straight up without ranging like it usually does, thus no chance to trigger trailing that could close those early in the week orders. Think of it like a bull with hot spicy pepper stuffed up its ass. and that is exactly what happened.

We already have Sunday trading disabled few weeks ago, I wish we had disabled Monday trading on the same day we disabled Sunday trading. If we did nothing would have happened to our accounts but more profits.

So we are going to that, Disable Trading on Sundays and Mondays. The EA will continue to manage trades on Monday but it will not open any new trades until Tuesday.

We also need to make sure that your account is with fair policy broker. Go to your MT4 and open a demo account. Open a Buy order, then a Sell order of the same size, look at your Summary line: Summary line should show that your entire equity amount is FREE for trading. If not I do not recommend that you continue with that broker.

If your broker charges margin on hedged trades you are not using fair margin policy broker.

If you are not using fair policy broker then when a trade goes against you, your broker will allow the position to continue losing all the way until you have 0 or negative balance in the account.

Meanwhile with Forexcom MT4 your position will be closed early and used margin will be returned to the account and you can continue trading. If I did this in my own love account I would have saved it better than resorting to hedging, where I put the account deeper in trouble by resorting to manual trading.

So in our New Settings We have only one thing changed for the normal template: Disabling Monday Trades.

And we added a new settings template for those who would like to sacrifice some profitability for higher security and lower risk. In both tests below the EA continues trading till the last minute before market closed on Friday.

Forexbody Template

Version 3.73