EasyGBP - New Strategy

Hi, C2 Family I’ve been away grinding on a new system. My original system driving this account trades similarly to human traders and needs trader volume and momentum so it kinda flatlines during the dull summer months on low-volume. This fact turned out to be a blessing in disguise since if EasyGBP had been completed prior to summertime and was performing as expected I would have just sucked the performance up to ‘summer’ and simply reduced risk for July/August and went to the beach and waited for Sep to resume normal performance.

Instead, I was burning my brain trying to ‘tune’ it to work in those unfavorable conditions until it hit me. Other algo traders have MULTIPLE systems that switch modes depending on conditions. Until that point I didn’t even think to make a SCALPING TRADER. After I thought about it for a bit it made so much sense. Scalping systems don’t need as much momentum as my ‘trading’ system, they WIN much more which is psychologically easier to deal with, they also have smaller losses and lower risk profiles.

It took me 3 tries to develop one I’m happy with and it’s really a cross between a ‘traditional’ scalper that I think of that might only net 3-5 pips but risk 50+ pips with a SL (which discouraged me from ever making a scalper). Developing my version of a ‘scalping system’ after programming a traditional ‘trading’ robot gave me the best of both worlds. My ‘scalper’ has SL’s of 25-40 and can net small pips AND large gains (the recent $364 gain is 88 pips).

It does try to close trades quickly with a minimum of risk (90% of the trades never pay swap fees) but if the currency runs it’ll catch quite a few pips while still keeping drawdown to ridiculously low levels. I’ve developed it using MT5 and its so efficient that I can test it quickly using only my desktop using 100% real-ticks with embedded spread (instead of requiring cloud rendering for speed) to get accurate backtesting results. To create ‘settings’ files I’m doing 60/30 - 60 days of backtesting and 30 days of forward testing. GBPUSD is killing it with fantastic results that reveal that most parameter combinations produce profitable results. I’m simply picking the SET file that presents the best backtesting AND forward testing balance graph then I run a backtest of the entire 90-day period using those settings to ensure they would work for that whole period.

Here’s the current backtest for the settings that are active right now. In fact, the scalper is such a reliable and low-risk trader that I’m sold on using it as the core system from this point forward.

Below I’ve posted the current FORWARD Test and BACKTEST results and good grief GBPUSD just creates tons of great settings and this is only risking 0.50% per trade. I could DOUBLE these results by only risking 1% per trade. The current C2 results are from risking 0.40% per trade since I wanted to see it trading LIVE for a few trades before I start ratcheting it up. It’s still at 0.40% but by weeks end I’ll have turned it up to 0.50%. Also I’m backtesting other currencies but GBPUSD gives such reliable results that simply increasing risk might be the best solution (even though AUDUSD looks promising)

In the following chart, the ‘Forward’ profit is 3-weeks (7/31 to 8/25) and the ‘Backtest’ profit is 2 months (5/28 to 7/30). It easily profited during the ‘flat’ period and amazingly most parameter combinations worked well during the period. Almost impossible to pick a ‘bad’ set. Also note how LOW the forward testing period drawdown is. In addition, the robot is based on pure price-action mechanics and the only indicators it uses are MA’s and standard deviation to measure volatility (I use it as a filter to avoid ‘flat’ periods).

Like I stated previously this ‘scalper’ benefits from my previous price-action robot stripped of the CPU-crushing complexity. I took the best parts of it and used them to create a smarter ‘scalping’ system. Fun Times coming up!!

Added another currency to EasyGBP. It looks like its the almost perfect currency for this algo. Below I’ve posted the currency back/forward test. BackPeriod: 05/28 to 08/06 - ForwardPeriod: 08/06 to 09/02. Every week I test the parameters since it only takes a few hours (even though I’m on a non-stop search for a 3rd currency). First find is GBPCAD. The algo likes the GBP pairs but nothing more than the CAD version.

Almost every back/fwd result shows a nice 2% gain with minimal drawdown. I’ll be evaluating risk as it trades and increasing if DD remains on the lower side. Before using the parameters I run them over the entire range (05/28 to 09/02). I use the setting with the best profit/LR Correlation (smoothness of graph). Posted is the current run and green are the active VPS settings and for today the green setting outperform over the entire range which is a good sign for longevity.

The posted report is the result of using those settings across the range. The report with 100% real-ticks says it would have won 100% of time!? Wow! Really!? - I don’t believe it but its prob not too far off the 85%+ numbers I expect. Truthfully, I cant argue since EasyGBP only has 2 VPS trades (only 1 on C2) and they both were small winners. It hasn’t lost yet.

Now I’m backtracking to GBPUSD to see if I can find an improved set. After a couple months of results I’ll probably reprogram this system in Python since it would have the ability to weekly re-optimize automatically (or MT5 add a library).

Competition for 3rd Currency is underway for EasyGBP and the first candidate is AUDUSD. It didnt take long for it to jump into the C2 fray but it entered on a HUGE spike so the lotsize got diluted by the Max Stoploss. It doesnt have the daily range of the GBPUSD pairs but the algo seems to easily ride it profitably so it can be the lil’ brother that tags along as I try to replace it. My AUDUSD back/forward tests generate multiple parameter sets with very smooth profit graphs.

In the end I might just have to increase the risk to bring the numbers up. A couple of other currencies challenge for the 3rd position but AUDUSD is pretty bulletproof across a range of settings and it seems to be a more dependable profit currency. I’ll let it run for a while and consider replacing it or boosting risk/reward. (at month’s end I’ll be making risk/reward and DD adjustments for all active currencies)