Alright, a full month has gone by and I now have enough data to analyze and see where I need to possibly investigate some of the trades done by my 100% automated Forex money machines.
We started the month of November by setting up 7 different automated systems on a VPS(Virtual Private Server) located near our broker’s datacenter. The closer the better. Here’s my setup:
With an average of 10ms, we don’t need to worry about latency, lag and execution speed as orders will be processed instantly. Ping of 50ms and less will output almost same performance.
Runner and Wonder systems are not performing too well.
On the other hand, we have Challenger and ATM slowly grinding the markets. From past month numbers, Challenger is more conservative than ATM scalping on average 4 pips/trade vs ATM’s 22 pips/trade average.
The following content requires a minimal understanding of control charts which are generally use in manufacturing, quality assurance and lean business management.
I use this method to give myself an overview of what happened in the past and how to control the future output of a system. I invite readers to spend some time on google and lookup tutorials on how they work.
Our charts easily tells us we should investigate further more into the event of Dec-4. There was a total of 22 trades opened across 3 different pairs, EURUSD, GBPUSD and EURJPY. 12 of them are connected to USD.
Now looking back at the chart, we can see the sudden up spike followed by the immediate down spike. Something tells me this has nothing to do with technicals but most likely fundamentals. Let’s have a look a past new events on that day.
This confirms the up spike created due to ADP Nonfarm Employment release which showed numbers worst than expected sending the dollar weaker across all board only to be followed by a huge push on the Crude Oil Inventories. Both moves are related to fundamentals or News Trading rather than technical. No corrective actions should be taken.
By judging ATM’s charts, we also notice an anomaly on 4-Dec.
On Dec-4 to Dec-6, I had 24 trades closed across 3 different pairs, most of which were opened by GBPAUD or an AUD derivative. The extreme anomaly for the Pips chart is the consequence of closing these 24 trades as a basket and averaging out a total profit gain.
Looking at the graph above, we can clearly see why we opened so many positions under such circumstances. Could this have been avoided? Are we missing anything? Let’s take a look at GBPAUD news releases from this date.
What do we see? Poor AUD report, Retail Sales AND Trade Balance. This move happened due to fundamentals, not technical. Therefore, we don’t need to change entry conditions, these will be put under special occasions such as News Trading.
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