First of all, I just wanted to mention that last year, 2009, was a crazy year for my Forex robots. I was testing too many currencies at the same time with robots that were way too risky, which is why I won’t even bother with quarterly results for that year.
Also, I have some good news. You probably all know by now that I have been only testing with FxOpen, which is a good broker. But I will also test with FXDD now at the same time. I will be able to compare the results and I believe they are both the best brokers to test with. A review for FXDD will come soon.
At this point, the only robots I would consider putting live would be AFG, Dragon EUR/USD and H4. I definately need more testing, especially on two platforms. Live trading might start on Q3, but I might consider it before… I will keep you posted.
Today I decided to drop two robots: Thunder and FxUltra. Thunder opens way too many trades (100 this month!) and is just not profitable and FxUltra has been dissapointing since the moment I first started testing it.
On a positive note, I will be replacing them with two new robots that, so far, I have seen incredible results from.
I am also soon going to start testing my robots on two different brokers: FxOpen (which I use now) and FXDD.
Terrific performance from H4 again. Dragon EUR/USD keeps impressing me but doesn’t seem to be performing that well on the GBP/USD. I am considering trying it out on the EUR/GBP instead. As usual, Thunder and FxUltra are providing very poor results and like I said above I will drop them soon. AFG seems stable and ACG is coming back from its loss.
My trader friends know that I love trading with technical analysis. But lately I have been interested in trading with pure price action, also called a “naked chart”.
I have learned a new strategy called the 1-2-3 strategy. I use a variance with Fibonacci levels.
How does it work?
To enter a short (sell) trade, you just wait until the price goes down and then goes back up, and then goes back down again.
To enter a long (buy) trade, you wait until the price goes up and then goes back down, and moves back up again.
1. It’s important that Point 3 is lower than Point 1 in a short (sell) trade, or higher than Point 1 in a long (buy) trade.
2. Enter the trade once the price hits Point 2.
3. Using the Fibonacci levels, wait until the price hits the first level then move your stop-loss to that level. You now have a guaranteed profit. If it goes further, when it touches the second level move your stop-loss to that level.
4. You’ll take your profit once the price retraces back to that Fibonacci level.
It’s usually good to put your initial Stop-Loss at Point 3 in case the market whipsaw.
You can see a few examples in the picture below. With that technique, the potential profit would have been $812, by only risking $100 per trade, in about 2 months.
After some thorough backtesting and forward testing, with different settings, I have come to realize that my Expert Advisor Sand does not fit my trading style.
So far it has created the biggest profit, but at what cost? For it to function well, the stop-loss needs to be huge and I don’t want to get into Martingale systems.
It will get replaced by a more simple indicator that is less risky, called A1. I will present it in my next update.
I am also currently developing another version of Thunder that might provide higher profit.
I’m excited to announce a new section on my website: Get Paid To…
It will show you different ways to make money online by clicking ads or reading emails, basically by doing very simple things! The best thing is everyone can do it!
Stay tuned for my first review.
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