Secret Project Reveal ~ Part 2

Filed Under (EA System) by Casey on 09-04-2010

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Allow me now to proceed with Part 2 of my secret project. We start off by a look at my account.

Stunning huh…

At the end of last year, I finally manage to get a penpal who I got to know from my site to help me trade. Now to make the story short, he trades for a living with his own EA together with his partners. So what better way to get someone to trade if he does have a proven record. Ok… maybe I have yet to completely verify his results or claims but after months of following me on my site and exchanging emails. I took to trust base on information exchange via email.

Now… his EA uses Martingale strategy… or rather a grid lot increment strategy which trades a basket of currency pair and closes with profits. Even when losses is incurred, the overall trade of the day is positive.

Now as you might know, I am very fond of Martingale. So fond that I completely rename Martingale to be my Lovely Megan. Obviously I somehow or rather feel that if this strategy if used properly with good money management, it might prove profitable.

But alas, I have yet to achieve that sort of technical height to really come up with a good idea to manage it. And so, I had to rely on someone who has a higher technical knowledge and skills to see if there actually is this kind of Megan strategy.

Anyway… here is the story. Around the mid of February or was it early February. The market took a beating, and of course for like any Megan strategy, drawdown was imminent.  So in order to stop the account from bleeding, a manual hedging trade was taken.

Thus while my profit is growing, the true picture of my account looks something like this. (Statistics on myfxbook) as of end March Notice while my balance is around 17k my equity is only at 2.7k. I did mentioned in my previous post that looks can be deceiving.

While the gain looks good, it is the equity that is very very important. The drawdown says it all. While some people can handle it. It was a bit hard for me.

What a real bummer. I knew something like this might happened and when I decided to go for his service. I was prepared. Yes, I was prepared to lost it all. Of course I hope that it did not come to that but it did…

Never say die before the fat lady sings and to me, the fat lady is still in stuck somewhere in the hole somewhere.

It was also around the end of March that I decided to take over my account since my penpal’s EA is unable to trade the remainder of the equity due to obvious reason. Namely because it is an Martingale EA.

From then on, I had to find ways to save my ass. I took a try on manual trading, removing the hedge and see how it performed. But I failed… it took another few hundred off my equity. Luckily I had a stop loss (hedge) place.

Much to say and learn about manual trading.

Since I had not confidences in manual trading… I had to go back to what I know best. Automatic trading…

Using my new found discovery about fore rebate, I was fortunate that this broker account which is GoMarket, was registered with CashBackForex, I thought I could use my rebate strategy to slowly recoup my equity. And bam!! I quickly set this to work. I started with Primeval and that did not go too well, because it did not take any trade at all!

A few days of setting it live confirmed this… For everyone looking to try Primeval… forget GoMarket… However… surprisingly EAKain does work on GoMarket. So I blasted both EAKain and the EAKain “demo” ala “MegaDroid Pro” ala “ScalperPro” to work. Small pennies… but slowly try to improve my equity level.

Oh… an another thing… I also put Forex Retracer live. It showed good interesting backtesting results and on their websites it says that it can trade on GoMarket. So whatelse… desperate times calls for desperate action.

It is going to be slow, but I suppose it will and should happened surely. Never say DIE!!!!

Hence forth I considered this to be a failed project. Sighhhh…. had so much hopes but as they say $hit happens.

Here is what it looks like after I started fu(king about with it.

Oh well… the interesting thing was that. I did not get sleepless night over these drawdown. While I was concern, it never really got me into a fit of agitation or anxiety.

Probably because at the back of my head I was already prepare to risk it. Hmmm… motivational guru will sure have a good time with me. If I go into a war with a losing mind set…. I suppose I am bound to lose the battle.

But what the hell… It is still not over. Until gawd dang I say it is!!!

On the brighter side… this situation gave me a greater insight to what hedging is all about… I am still monitoring the other hedge trades. Looking to slowly close the gap if possible. See the huge downfall on the graph… that’s me learning about hedging… :)

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