http://www.myfxbook.com/my/members/crescendo/crescendo/49434
Crescendo is an EA that is a basket closing type EA trading the GBPJPY and GBPUSD.
The trading logic of the EA is that it checks the trend every 12 hours and is supposed to opens orders in the direction of the trend and continues to do so until the total of the basket reaches your predetermined basket take profit of let's between $4.00 and $40 depending on the size of the lots you are trading and balance you have in your account. Once the basket reaches that set amount, the EA closes all the positions with the total of the orders in profit.
The EA has been working great until now with the exception of the GBPJPY and we all know the reason for this.
You will see the screen shot below that he has a current DD of -4,017 pips.
And the reason for this is that he has a bunch of Sell orders in his basket and the challenge he has is that the GBPJPY appears to be in a major uptrend because of all the unfortunate events that happened in Japan.
I did some calculations on his open orders to find out the distance between each position.
125.65 and 126.75 = 110 pips
126.75 and 127.75 = 100 pips
127.75 and 131.25 = 350 pips
131.25 and 132.03 = 78 pips
132.03 and 132.63 = 60 pips
132.63 and 133.48 = 85 pips
133.48 and 134.21 = 73 pips
If you notice he has some large distances. In theory this should be good because then any retracement would immediately reduce the negative amount of the open positions working backwards and then eventually close the basket in profit.
The thing I am noticing is that having a wider spacing is a double edge sword because as the price keeps moving opposite the trades, the larger the amount
of pips that the price is going to have to reverse to close the basket especially the JPY pair.
Do you agree as well?
I thought of using micro lots in order to perhaps use this EA however we may still have a challenge and that is the DD and the amount of equity that is using
and reducing the amount available to open more positions of the GBPJPY or the other pair that it trades GBPUSD.
If we use the creator's demo as an example and insert micro lots instead of the mini lots he is using we get the following calculations we get only -401.70 pips DD
or -$477.90 DD.
It doesn't seem too bad however with a balance of $3,000 we will have a DD of -16% and with the potential of it continuing to take away available equity and thus available margin to continue to trade the GBPJPY or the GBPUSD for that matter.
In one of my demos, the DD is currently at -$1,922.with 5 open positions. Look at how much the price will have to retrace in order to close the basket in take profit.
Also I have the Max DD set to 50% which is -$3,329.21. In order words, if the DD for that pair reaches -$3,329.21 the EA closes all the positions for a loss. This is what is called a Black Swan feature. That if there is some really major event going on, it activates to keep your account from incurring any more losses or at least preserving the other 50% of the account. You can set this amount to whatever amount you want.
http://www.mt4i.com/users/fxo7crescendo1/stats
However in this demo, you will see that the open DD is only -$417.32. Also notice the distance of -96 pips between the first and second position. In other words,
this account is not incurring so much DD as the other account.
http://www.mt4i.com/users/fxpro1crescendo/stats
The only reason I can think of why this is happening is either I started the account a couple of days after the other one or it has to do with the timing of the market check.
If you look at the screen shot below in the lower left hand corner of the chart you will notice the amount of time of 1 minute to the next market or trend check. And the demo above is set to check the market or trend in 1 hour and 1 minute.
The reason I bring this up is because one demo has -$1,922 DD and the other has only -$417.32 DD.
What are your thoughts on this EA and do you see any possible solutions to this dilemma of DD?
And do you see any good ideas from this EA that you can incorporate into your EA or EA's?
Please email me if you have any questions or comments to
For more information on this EA, please visit: http://ForexCrescendoRobot.com
Thanks and I look forward to collaborating with you.
Regards,
Mike Torres
(305) 389-0170 cell
http://WealthSecrets.com
Quote of the Day: "The breaking of wave does not explain the whole sea."
