Lovely Megan

Filed Under (EA System) by Casey on 12-01-2010

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If ever I were to use my analogy on the art of kungfu accurately then I would say this would be the best example that clearly showed what my gambler friend was saying…

Learn, observe and kick the bag… if it failed then I should relearn, observe and kick the bag again with a different style…

I have taken Cyborg EA tested it live, got slapped in the face, took BestSniperForex EA tested it live, got kicked in the nuts, relearned everything about martingale, mutate it a bit and applied it differently from a different perspective and this is what I got… A mutated Cyborg version which I have renamed it Lovely Megan.

Last month, I moved my account from IBFX to FXOPEN… one of the few brokers that offered micro account. Previously, upon backtesting I found that my drawdown was around 20% at the most extreme case with $10k balance and trading at 0.01 lot.

But upon monitoring the trades with my account was in IBFX, I seem to have not seen the extreme drawdown. Or rather I was not able to calculate or see the absolute drawdown via MT4Stats.

Further more, my account was a bit messy… and the stats does not exactly accurately show how well my Lovely Megan was performing.

Anyway, I could see that the returns were good, since I started it and even when the EA was taking the 6th degree on the Martingale scale, my margin was still in tact, and with room to spare. Mind you I was trading with two currency pair.

ibfx2009 As you can see, my return was about $44 on $522, which was 8% over two months, not bad I would say. That was the point where I resolute to do a modest 5% per month on my return portfolio.

I have taken since October 2009 because that was the time, when I started diving into Martingale, Cyborg and BestForexSniper in more detail.

So, Lovely Megan was working out nicely and slowly over the short 2 months I set it live.

Now the only data that I do not have was the drawdown. Over that past 3 months since October, I was unable to see the drawdown of this EA.

So the only way, was to rehost my MT4Stats to myFXBook.

I have actually runned this EA on FXOpen in December 16, 2009. A few days after I closed or rather withdrew my balance from IBFX. So you will be able to see how well my Megan is performing.

From my above stats, I have only been running this EA for like 13 days from the time of this writing and well… my profits stands at 2.75%. at a drawdown of 1.81%. Is this good?

I think so…

Oh… I have also increased my deposit amount to $1000. And by the way, if you look at the balance, the amount states there $100,000. Because it is a micro account it is represented in cents and not in dollar, which is a drawback with myfxbook….

Anyway, from my previous article on Capital Outlay, I mention as in order to trade a martingale system, the capital to withstand the draw down was as such:

1 standard lot = $100,000 unit currency = $1,000,000 capital
0.1 standard lot = 1 mini lot = $10,000 unit currency = $100,000 capital
0.01 standard lot = 1 micro lot =$1,000 unit currency = $10,000 capital
0.001 standard lot = 1 nano lot = $100 unit currency = $1,000 capital

At $100,000 I will trade 0.1 standard lots, at $1,000 I need to trade 0.001 standard lots. In FXOpen case, my $1000 was represented as $100,000 and the lots I am trading is 0.1 ‘standard’ lots = 1 nano lot.

Over the Christmas and New Year holidays Megan was taking a big chunk on my margin for both currency and it was taking the 5th degree on the Martingale scale. But myfxbook only calculated the drawdown to be 1.8%.

Does that mean I still got room to push this EA further? I really do not know and there seems to be a lot of learning to do on this EA.

I also did mentioned that I would increase my leverage. Previously with IBFX my leverage was 200:1, and I wanted to increase my leverage to 500:1. IBFX was following NFA so, instead of requesting in increase my leverage, they wanted to reduce it to 100:1.

So now with FXOpen, my leverage is 500:1.

Well… I believe there is still room to improve on Megan. There are still two more currency pair which seems interesting but has a very huge drawdown.

Might need to retest it and mutate Megan a bit further to see if I can improve on the return and reduce further the drawdown.

Exciting year ahead if you ask me…

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