1 (edited by hannahis 2016-01-03 19:06:36)

Topic: Generate EA based on Profit level

Hi all, here is an idea or proposal for those who want to use FSB to generate profitable EA based on Profit level.  Have fun trying out this method.

Under the Closing condition, choose Trailing Stop Limit and set your input.

Your input depends on what kind of trader you are, Day Trader, Swing Trader or Position Trader and your input would be according to these style or EA you want to develop.

Eg, if you want to generate Intraday EA, then set shorter trailing and shorter TP.  And larger Trailing Stop and TP if you are a Swing or Position Trader.

After you have set your Trailing Stop, TP, SL, BE etc.  Now set your opening condition with Bar Opening/Closing as the only condition.

Now go to Generator option and click on your EA's Strategy panel to set your Stop Loss Usage/Range, TP usage/range, BE usage/range input.  Next lock your Closing conditions so that the Generator would only change the Opening Conditions and not change your Closing Condition, i.e. Trailing Stop Limit as your ideal choice.  Now let the generator start generating EA based on these TP, SL and BE inputs.

That's it....hopefully some of you out there would stumble on an excellent EA...do share your feedback and results here to let us know how this method work for you...all the best to you all.

Hannah

Re: Generate EA based on Profit level

I have experimented with this approach in the past and had unsatisfactory results using the trailing stop limit unless setting the amounts and locking it.

However, this idea works well if you do lock the trailing stop limit.

Great idea!!

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Generate EA based on Profit level

Hannah, You have proved to be a successful strategy developer, you create strats which deliver if we look at the stats of some of your strats. In this respect I would like to ask you how do you approach the problem of extrating the power of prediction from your work. The latter is what we are constantly trying to do, isn't it? We aim to develop a combination which has predictive ability. If we see a great rate of return in the back-test it is not a guarantee of future profits, maybe the strat has a neat position bias in perfect harmony with overall net trend for a given data set. Later, when it's put out live the trend changes and we have a hot potato in our hands and a live account in a steep decline, even though it all looked so wonderful. Eventually, at some point we have to realize and accept the fact that our development has no predictive power. You seem to nail the predictive part in your systems, can you crystallize the knowledge, so to speak, that it could be developed as a filter for FSB?

4 (edited by hannahis 2016-01-04 22:36:29)

Re: Generate EA based on Profit level

Dear Footon,

I'm humbled by your question.  In many aspects you are far more smarter and better than me.

There is nothing magical in my approach.  I don't believe in predictive approach so to speak.  Maybe more of a probability approach but still...my indicators don't "predict" instead it act when the Action happens, i.e. Breakouts.

The problem I first started out (and therefore assume many may have walked similar paths as mine) is that I took the "commonly used" parameters but I noticed these parameters are usually "delayed" action, i.e by the time the line crossed each other, many pips have gone by and if we rely on these delayed action, we going to always miss the mark.  That's part of the rational I will never use any time chart for FSB besides 1min, accuracy is crucial both in parameters and also timing. 

Even if you got the parameters right, if you are using more than 1min FSB time chart (to run your EA), you lose the importance of timing in executing the trade timely (if we truly understand the importance of this, one would then understand why I kick so much fuse over PBV's limitations...of cos PBV has it's strength...however it comes with a huge lagging limitation for any time chart above 1min.  For 1 min time chart, PBV is essential...I've rest my case on this one...not going any further).

So Timing (using 1min Time chart) and getting the "correct" parameter is the key to my success, in short.

Here is a snap shot of how my MT4 Chart look like and with these indicators in various time charts, I try to understand under what circumstances/combinations of "crossings" and "higher than" etc would give me higher entry accuracy. 

I use LTF in my strategies.  I use higher time frame as the main deciding factor, eg 15min, 30min or 1H (in the past I use H4 but realised a bit "laggy") and then I add 1 min default inputs to increase entry accuracy.  In other words, even when the trend is going to change...I make sure at the point of entry, all input/signs in 1 min default are confirming the direction.

If you observe the orange Vertical line, you would see how I manage to have rather good "predictive" entry.  This is a 30 min MT4 Chart.  Please don't ask me for the parameters...it's my secret smile



http://s22.postimg.org/a2shwypi5/Indicators.jpg

Hannah

5 (edited by hannahis 2016-01-04 23:22:20)

Re: Generate EA based on Profit level

footon wrote:

If we see a great rate of return in the back-test it is not a guarantee of future profits, maybe the strat has a neat position bias in perfect harmony with overall net trend for a given data set. Later, when it's put out live the trend changes and we have a hot potato in our hands and a live account in a steep decline, even though it all looked so wonderful. Eventually, at some point we have to realize and accept the fact that our development has no predictive power.

One main gripe I've with Generator/Optimizer is that the combination as you said sometimes just happened to be position bias in perfect harmony...for a given data set/time.

But the real reason for such "failure" is that the generator/Optimizer often give us parameters that are theoretically unsound.  That's my main reason why I don't use generator/optimizer at all for my strategies....99% of my strategies are "manually, self made".  Once a while I venture off to give generator/optimizer a try but they are not able to produce consistent results because it is not based on a strong theoretical structure.  Whereas, if you looked at my MT4 indicator chart, they are consistent and therefore stable, higher predictive power that translate to true results and the added advantage is that I can use it also in other currencies/instruments/commodities/multi markets.

That's why I propose for a Mini Optimiser, whereby instead of plucking random figures, I rather work on the same parameters but need the optimizer to choose which smoothing method or base price to uses.

One possible suggestion to improve the Optimizer or Generator....have a general rule to restrict the Generator or Optimizer from churning out "theoretically unsound" probabilities.

What do I mean by unsound probabilities?

Let's take MA as an eg.  If we have fast MA 14 cross Slower MA 50, we would logically expect that it is a Bullish direction and vice versa.

However, what I noticed from the strategies generated or optimized, I sometimes see Bearish direction in the Opening conditions...it's against logic and unsound...unless such indicators is use as a divergent.

Hence, I propose that if we were to put certain "restrictions/ Trading rules" on the Generator or Optimizer to filter out these "unsound proposition"...we have a better chance of seeing more stable and profitable EA generated/optimized.  We need to restrict the generator/optimizer from using a bigger parameter over a smaller parameter for certain indicators such as the MA and other similar indicators.  Although this is a broad brush stroke that may eliminate certain strategies but if we were to compare the qualities of Strategies with and without this rule, I believe we would have better results from strategies that have such rules imposed.

Popov, focused and put a lot attention to ensure data/statistic soundness in FSB...but I think we also need to add in theoretical soundness in the way Generator/Optimizer function and the way indicators are used in Opening and Closing conditions.

In all fairness, user can have the option to enable/disable this rule.  I'm rather excite to find out the results of having some Trading rules applied to the Generator/Optimizer.  If this work, honestly, churning out profitable EA would be easier...imagine using Trailing Limit and we would have endless combination of EA generated that are theoretically sound.  When that day comes...we all are laughing our way to the bank...I do see it possible one day as we fine tune FSB along the way.  FSB 5 years ago and now is such a big improvement...I believe in the next few years or less, with each fine tuning...FSB one day will be THE Trading Tool, all traders must have smile

Hannah

6 (edited by GD 2016-01-05 00:15:11)

Re: Generate EA based on Profit level

Dear Hannahis

Relative to unsound parameters. I have seen this situation also. It can be seen as sound of instability of used combinations, which is not so bad to be known to the user.

a> The change of bullish to bearsih behavior has to do with writing of indicators and not exactly with FSB.
It can be corrected for each indicator by the user if he knows how to do it.
b> In case of opening conditions a bearish condition should not be deleted as selection.
i.e we can have 3 bullish selection in H1 and one bearish at M15.
In generator maybe you have right, some unsound selections should not be calculated inside generator.
I say maybe cause I can speak to you for a theory which can say than any function it gives minima is fine!
c> relative to minor optimization there are algorithms for non analytical  functions to go to minimum
In this case steps to use are important for each parameter. The optimization can run faster.
For analytical functions the situation is even better but Programmer has to do a lot of job.

As solution,
I think a separate +-5 or larger selection in optimization for any indicator of FSB Pro can be exist and be used after special selection by the user against to do it by hand

7 (edited by hannahis 2016-01-05 00:37:33)

Re: Generate EA based on Profit level

Actually, we can experiment using some common or popular indicators to apply some trading rules for the Generator/Optimizer.

In my own EA, I only employ about 2 types of indicator (with many opening slots for different parameter/period and LTF inputs)...that's all yet so powerful if given the right parameters that are theoretically sound.

I have a hunch that if we just have a few indicators (highly popular indicators) with the rules applied for the Generator/Optimizer, we have a very high chance that FSB can find us really good profitable EA combinations.

Hannah

Re: Generate EA based on Profit level

GD wrote:

Dear Hannahis

Relative to unsound parameters. I have seen this situation also. It can be seen as sound of instability of used combinations, which is not so bad to be known to the user.

I understand what you mean because I also use bigger parameters over smaller parameters for opening logic but these two input are not the same "instrument" for eg RSI and MA as compared to MA 14 and MA 50 (which in this case, the trading rule needs to apply for MA and MA inputs).

Hannah

9 (edited by GD 2016-01-05 04:17:04)

Re: Generate EA based on Profit level

I Checked idea of Hannahis.
To do go to M1 we need to multiply periods
i.e. from H1 to M1 x60.....
This is difficult as FSB cannot accept it i.e. 50x60=6000!!!
Is there something more clever?

10

Re: Generate EA based on Profit level

The other solution is the software to permit user define max values by himself
In other case how can we use large values in indicators at M1?
Is there any other trick?

Another suggestion is against to have +/-5, +/-10, etc

+/-5 %, +/-10%, etc

11 (edited by hannahis 2016-01-05 06:50:10)

Re: Generate EA based on Profit level

Hi GD,

To use 1min FSB time chart to develop EA/strategies....one must travel off the beaten path.

To use 1min FSB time chart, one must re-look at charts/parameters very differently and have a paradigm shift (from the usual conversion, i.e. x60, x240 etc to convert your H1 or higher period into 1min).  In my opinion, stop this kind of thinking....start looking for "sharp" parameters that can cross very well in 30min, H1 or H4 charts and use these same charts across all other time MT4 time frame charts to see how these input "behave".  Then input these observations into your 1min default FSB starting with higher time frame (LTF) 1st.  If you use 30min inputs as the deciding/determining factors, then find out what combination of crossings, higher than etc would "guarantee" higher Entry accuracy, then move down to lower time frame with the same sets of indicators but different combinations and lastly use 1min default to increase further your Entry accuracy.


If you do finally understand what I mean, you will realized that with 1 min FSB, you can create very powerful EA that is sharp and versatile (you are able to develop intraday, swing, position trading style EA).  Right now I'm experimenting with a sets of EA to refine them...making them so versatile that they have the characteristic of all these 3 style of trading...3 in 1 EAs (intra, swing and position).  Actually, I was "forced" to develop these 3 in 1 EA because of recent sharp and huge market fluctuations (started 3 mths ago) and Popov hasn't announced his new protection features yet...so out of desperation and frustrations, I was "pushed" to re-think again how to develop more reliant and versatile EAs...sometimes "crisis" pushed us out of the envelop, resulting in paradigm shift....if we keep re-thinking and re-thinking and not get stuck in old paradigm.

Hannah

12

Re: Generate EA based on Profit level

Dear Hannahis

I understand what you wrote.

I try to make it practice

How many bars do you use for each TF?

13 (edited by hannahis 2016-01-05 15:29:24)

Re: Generate EA based on Profit level

Hi GD,

I'm not so sophisticate when it comes to these aspects, I'm just happened to be a persistent person who never gives up searching for the right tools/parameter and by the grace and wisdom of God, He guide and directed my path and fine tune my understanding...so that I can develop such excellent EA.

I'm assuming you are asking for the Bar in chart (MT4, tools and chart setting), it's the default setting 65000...I hope that's what you are referring to.

Hannah

14 (edited by hannahis 2016-01-06 14:52:56)

Re: Generate EA based on Profit level

Dear all,

I'm attaching an EA for Premium members to download.

This is a EA generated by FSB make a Total Profit $3837 with net gain $3050 in 3 days.  SL 210, BE 210

Please test it out in your demo 1st.

It has total during Jan 4 and Jan 6 = 14

Total lost = 5 ($787, max loss $214, min loss = $65)

Total win = 9 ($3050, max gain = $1039, min gain = $46)

Trade Safe (as Popov always say)

Hannah