Silly Scalping Part 2

Filed Under (EA System, Journal) by Casey on 27-01-2010

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Well, last week was pretty tiring. Had to travel to beautiful Beijing on a business trip. Weather was cold but manageable. This was my first trip to Beijing, and I am just amaze by the sheer number of Chinese people per sq foot… :)

Apart for my business work, I manage to squeeze some time to walk about Beijing, take the subway, visit Tienanmen Square and of course taking a quick visit to the Olympic Bird Nest.

Amazing huh….

Ok… this blog is not a social blog, but hey a bit of social blogging should not hurt right… right… One photo of the Bird Nest does not exactly qualify this to be a social blog.

Anyway, during my trip to Beijing, I did not manage to get any forex activity done (directly that is), because internet control in China is pretty tight. Even facebook and twitter was ban in China. I did not know why until I google it and found these sites.

Here are some interesting read:

This is not something new, but laymen like me are so caught up with my own personal escapade that we turn out of be as ignorant as hell to what is happening in our big world.

goodniteserviceI mean… It’s bad enough that I keep getting harassed by some mama san asking me if I wanted a good time and pushing me some call cards during my stay in Beijing.

I was not able to even get access to some forex site let alone getting into my VPS. It was strange that I was not able to access my VPS, I though the Chinese government would not be so strict enough to cover the whole internet.

So unfortunate that my VPS ip address was tucked in their blanket… so I assume.

But one things for sure, even when I can’t do any forex activity done, my trading continues. Ahh… the bliss of automatic trading….

Ok… enough of frolicking around. I thought this week would be a good week to share with you a project that I have been working on since mid October 2009.

Since mid October 2009, I was toying around with an idea about Fapping my Dragon, which never really took off until mid November 2009,  as I continue with the idea of Silly Scalping Shocker.  Where I used a few robots or forex EA to only trade one currency pair… EURCHF. Namely Forex Shocker, FAPTurbo, DragonPips, Votality Scalper and Euro Cross (Same developer as Votality Scalper)

Today I would like to share with all of you how these idea progress so far.

Impressive no?

Well… yes and no I guess. The drawdown that you see was because I started increasing my lots from 0.1 to 0.5… hehe talked about being greedy…

This account is actually a micro account once again with $400 as an initial deposit to start off with. when I was trading at 0.1 I notice the drawdown was like 1%. So I did a logical calculation that if I were to increase my lot from 0.1 to 0.5 I would probably have increased my drawdown to 5%. Which would be relatively acceptable in the forex trading community.

But… this great big spike down has proved to me that I was wrong. And it was also my bloody luck that when I increased my lot, my stop losses started to happened.

You see, with 5 EA running in tandem I did not realize that I should be looking at a cumulative drawdown. The 1% drawdown was at that time only due to one drawdown from one EA, and not more than one. So in actual fact, it was suppose to be 1% x 5 EA for 0.1 lot which should be around 5%.

And subsequently by increasing it to 0.5 lots I increased my drawdown to not 5% but rather to 5% x 0.5 lots which is 25% drawdown.

Ouch… again… all these are lesson learned.

But on the bright site, my profits started to move upwards and took about 1 months plus to recoup my miscalculations. The sharp rise is of course due to me maintaining my trading level at 0.5 lots. (Oh… but the way… it’s 0.5 micro lots)

So there… now I have made this statement public for all to monitor and see how far my silly scalping idea works out as time goes by…

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