Topic: 20,000 pips on GBPUSD Pivot Strategy

And seems "only" up to 3 lots max, cut all these in half so the 681 DD is equivalernt to 340, and we got a very OK strategy:
Forex Strategy Builder v2.5.3.3
Strategy name: GBPUSD  Daily train-mid93-Dec2006 20686pips 681DD good WalFwd
Exported on: 12/28/2007 12:56:36 PM

Market: EURUSD 1 Day
Spread: 4 pips
Swap Number: 1 pip

Intrabar scanning: Not accomplished
Interpolation method: Pessimistic scenario
Ambiguous bars: 650
Tested bars: 3748
Balance: 20686 pips
Minimum account: -220 pips
Maximum drawdown: 681 pips
Time in position: 65 %

A same direction signal - Adds to the position
An opposite direction signal - Reduces the position

[Opening point of the position]
Pivot Points
     Enter long at S2 (short at R2)
     Base price  -  Previous bar range
     Use previous bar value  -  Yes

[Closing point of the position]
Take Profit
     Exit at the Take Profit level
     Take Profit  -  61

But again, if someone could tell me about the intrabar orders window in regard these results it would help.  Are they just "ready to go analog sigs" whence bar closes?  I.E., have no ideas on how to employ, lot of fun to run this FSB puppy, but connection with reality sadly missing, as much as "results" can delight!  :-)  :-O  Since it is only daily bar kind of srategy wouldn't we think that at hour of end-of-day (17:00 or 00:00) we can see from windows on the right what the order is to be?  But again, I need help to do this as the upper intrabar window confuses me, how do we apply this at those hours, or what hours are these order openings?  Again, if not applicable in any manner, we need intrabar order suppression option on generator pop-up, along with multi-lots-suppression and max-DD options.  These generator options would behoove toward running into some real solutions, otherwise the generator pop-up is only random off-into-wild-blue-yonder as regular behavior!


Re: 20,000 pips on GBPUSD Pivot Strategy

Hello friends,
It is an interesting strategy and I will comment it with pleasure.

This forex strategy raises entry signals against the market by limit orders. When the market goes up and reaches the previous bar Pivot Resistance 2 Point the strategy enters short or when the market goes down and reaches the previous bar Pivot Support 2 Point the strategy enters long.

Adding / Reducing:
When there is an open position, the strategy adds one more lot to it when there is a same direction signal and closes one lot when there is an opposite signal. Of course, when the position is of one lot only the opposite signal will close it.
The main point here is that the strategy adds to a losing position against the market and it reduces a wining position by taking a part of the profit. 

There are two cases when the strategy closes the position.
- By a limit order (Take Profit of 61 pips)
- By an opposite signal when there is a position of one lot

It looks like that the strategy closes the position on profit only but because of the roll-over fee and the averaging it is not true every time.

A drawback of this system is that the amount of loss is not limited.
In addition, the number of open lots is not limited (actually, the maximum number of open lots is four during the back test)
This can be easily corrected by adding a Lot Limiter as an Opening logic condition and the usage of Stop Limit instead of Take Profit as a Closing point of the position.

Back Test:
This strategy is an example of Algorithm Fitting. Using the Bar Explorer you can see that even the Pessimistic Scenario is not enough pessimistic in this case.
The Comparator shows that the Shortest bar route interpolates the strategy in the most skeptic way.
On my data, the back test shows 854 ambiguous bars and that has to be a warning for everybody.
The scanner gives a more precise picture. You can notice a clear change of the balance line direction when the intrabar data starts.     

- always use some kind of loss limiter (Stop Loss, Stop Limit, PSAR, Close and Reverse, Opposite Signal = close on a trend following systems ?)
- use Method Comparator to see the difference between the interpolation methods
- use the Intrabar Scanner when there are ambiguous bars
- limit the number of open lots when Same direction signal = Add

Re: 20,000 pips on GBPUSD Pivot Strategy


Is not it common sense to have various kinds of these controls on the generator pop-up before running it?  Putting these things "in" after generator randomly searches for something is usually fruitless because then the result is a far worser one, but if one can have generator search with these criteria "in" then running it will come across OK strategies, as I mention in other posts.  No?  Or am I missing something?  It doesn't make sense to run this "stuff" without the controls "from the get go", no?


Re: 20,000 pips on GBPUSD Pivot Strategy

The generator in its present form is abble to give you a common idea only but not a complete strategy. You have to refine the strategy after it has been generated. The gen is not clever enough to do it alone.
I'll try to improve it leter.

Aboout the Bar Explorer the missunderstanding of the commands is not your fault. These are not commands but description of the waypoints. The problem comes from my English.
You should consider them as follows:
Open Long Position -> Entry point
Close Position -> Exit Poit
Add to the position -> Point of adding
Sorry! smile

Don't hesitate to correct me if you read something funny in the website or in the program. All reqomendations about the program are highly apresiated!