Stacking It Up

Filed Under (Journal) by Casey on 22-01-2011

One of the things I do as an EA trader is to build my EA portfolio… It is not an uncommon thing to do. In fact, it is the most logical thing to do.

Logically speaking, when we put a few different type of EA on an account, what we are doing is ‘diversifying’ our risk on an EA or not depending on only one EA to assist us in our trading quest. One EA might take a losing trade while the other EA might take a winning trade… At the end of it all, the sum of all the trade must equal to profits. That is the idea behind building our EA portfolio.

If the sum of all trades does not yield us profits… then we tweak our portfolio by finding good EAs and removing the lousy ones.

Anyway… that was what I have been doing all this while… Building my EA portfolio… and it is not an easy task. It took me time and patience and of course with a bit of help from the forum communities and of course pen pals which I have accumulated over these two years.

Ideas were implemented and discarded. EAs were tested, added and remove.

One of the reason why I really have not gotten around to test new EAs is because I wanted to focus and fine tune the EAs that I have. Sure… the new EAs coming into the market might be better but if I keep looking at all the EAs that are being release on the internet, I would loose focus on what I am suppose to do… which is to profit from the market.

At this point in time, you could say I have a steady portfolio, over the past few months my portfolio have been profitable, even though I have yet to publish my year end results. And with that, there is always a tendency to add and improve it.

They say diversification is good… The more you diversify the better you mitigate or transfer your risk.

Well… I would agree to a certain extend. When building my EA portfolio I am diversifying my risk in an upward position. You can say that I am stacking up bricks. The higher I stack the bricks the more unsteady it might become and the riskier it will be to control. That is if one does not stack it up properly…

While I do diversify my risk like having 3 different account in three different currencies… using 2 different strategy on each of these account with 4 to 5 EA trading on one account on 10 charts. (Wow… I never knew I diversified so far and wide….) I feel that my stack is shaky…

And as you know… the more you stack your bricks to more unstable the whole stack becomes. All it need is one small push… and down goes your stack of bricks.

This is the same when I continue to stack or put more EA on my account… all one needs is a small change in the market against my EA, then all hell will break loose.

I have been there before… and it is clearly shown in the zig zag of my account. It took me quite some time to rebuild it back up. And it is a lesson I learn…

So since I do not want history to repeat itself on my account, I have to start streamlining my EAs. I need to do is to start removing those shaky bricks even though some of it is profitable…

If not… my account could look something like this… (I am using this chart as an analogy and it may not reflect the real thing)


Now most of his/her chart were demo…. but the point that I wanted to express here is that, there are so many EAs that one can not see the clear profit line.

If you can’t see the profit line… How do you expect to profit from forex? It was until he/she stopped all the demo was when he/she could see a clearer indication on which EA would work. Ok… that image above does not represent a a good working EA but… you know what I mean…

Frankly … that was what I too have been doing in the past… Not really that effective if you ask me. While I still think that building an EA portfolio is like stacking bricks… It does not mean that it is all that bad… provided if we stack it up nice and right…

If it’s done properly… one could probably stack his/her EA up as high as his VPS memory can take.

And this is what gave me the idea about stacking up my martingale account Lovely Megan and Lovely Cheryl. Lovely Megan can only go so far with the same steady settings… and splitting my account and putting another EA on top of it…

Well…. Lovely Megan can continue to do her own thing while Lovely Cheryl will have her own thing to on top of that…

Ooo… kinky…


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